In addition, Hong Kong people believed that about 70% of their current income would be sufficient to achieve their ideal retirement living, implying they were generally more down-to-earth towards retirement planning, and were more willing to accept a decline in quality of life upon retirement than people from Mainland China.
Paul Tse, Chief Marketing Officer of FWD Hong Kong & Macau, said, "Our survey indicates that Hong Kong people start retirement planning earlier and have the longest time period to accumulate their retirement reserve among all other GBA counterparts, but surprisingly they discounted the costs of retirement living. "
Paul continued, "The Greater Bay Area working population believes their retirement reserve should cover both healthcare and daily expenses, as well as savings for the next generation. Ideal retirement planning should have savings, protection and legacy as key pillars to ensure a quality retirement."
The questionnaire aimed to discover respondents' attitudes towards retirement planning and preparation, and savings for the next generation. The results revealed that:
Hong Kong people retired late but prepared for retirement early
- The average ideal retirement ages of respondents in Hong Kong, Macau and Mainland China were 61, 59 and 57 respectively.
- At the same time, respondents in Hong Kong and Macau started to save for retirement at an average age of 40, two years earlier than people from Mainland China.
- In addition to bank savings, Hong Kong people tended to invest in stocks, bonds and funds to manage retirement reserve and were reluctant to adopt other financial tools.
- Around 20% to 30% of Mainland China respondents were willing to diversify their retirement reserve portfolio by investing in insurance products and annuities. The annuity scheme vigorously promoted in Hong Kong in recent years was more accepted in Mainland China (26%) than in Hong Kong (19%) and Macau (2%).
- Nearly half of the respondents in Hong Kong (46%) and Macau (44%) expressed that they would be financially prepared to provide for the next generation and even more Mainland China respondents (63%) held the same belief.
- Among those respondents who did not intend to reserve wealth for the next generation, Mainland China (53%) and Macau (54%) respondents believed that the next generation should be responsible for their own needs, while Hong Kong respondents (48%) had no plan to have children.
Renowned local celebrity artiste Sharon Man-Chee Chan expressed, "Although I have already purchased an education fund for my son, my intent is to prepare the best for him to cope with future competition. It’s imperative for me to prepare plans for savings, protection and legacy."
Simple and Fun Retirement Heart Calculator to Aid Retirement Planning
Recognising quality retirement planning can be challenging, FWD has launched today a retirement planning calculator named “Retirement Heart". Unlike other complicated retirement calculating tools in the market, the “Retirement Heart Calculator” is dynamically designed and guides users to select the most appropriate retirement plans by estimating users’ life expectancy and analysing their needs during retirement based on their inputs about lifestyle, work, family background, and retirement aspirations.