FWD Discovers HK Starts Saving Earliest, Has Eldest Ideal Retirement Age in Greater Bay Area

Hong Kong people are more willing to tighten their belts than people from Mainland China, expecting a 30% decline in current income to maintain their desired living standards upon retirement


Hong Kong, 18 February 2019 – FWD Hong Kong recently conducted a market first "Greater Bay Area (GBA) Working Population’s Retirement Attitudes and Preparations” survey. The survey results show Hong Kong people on average began to save for retirement at the age of 40, earlier than people from Mainland China. However, they regarded 61-year-old as their target retirement age, which was the eldest among all other GBA cities. 

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. 
Hong Kong people believed 70% of their current income would be sufficient to maintain a satisfying retirement life, resulting from unvarying wealth management  
  • 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%).
Diversified saving plans to benefit next generation was a dominant theme, particularly in Mainland China
  • 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. 
Samson Wong, Chairman of the Architecture and Design Development of the Guangdong-Hong Kong-Macao-Bay-Area Economic and Trade Association, is the founder of his company, as well as a father of three children. He currently manages retirement reserves mainly with bank savings, because he is cautious and lacks time to understand the complex financial products. "I hope there are some simple, easy and comprehensive ways to assist me plan my retirement reserve so that I can focus on my career, and meet the needs of my retirement and children.” he said. 

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. 

- End -

Paul Tse, Chief Marketing Officer of FWD Hong Kong & Macau said, an ideal retirement planning should have savings, protection and legacy as key pillars to ensure a quality retirement, according to  the market first "Greater Bay Area (GBA) Working Population’s Retirement Attitudes and Preparations” survey .


(From left) Samson Wong, Chairman of the Architecture and Design Development of the Guangdong-Hong Kong-Macao-Bay-Area Economic and Trade Association; Paul Tse, Chief Marketing Officer of FWD Hong Kong & Macau; and renowned artiste Sharon Man-Chee Chan agreed that quality retirement must begin with comprehensive planning.


About "Greater Bay Area (GBA) Working Population’s Retirement Attitudes and Preparations” survey

To better understand how the GBA working population were planning and preparing their retirement, FWD commissioned market research company Kantar Hong Kong Limited in late December last year to carry out the first large scale survey on retirement planning covering all 11 regions and cities in GBA. A total of 3,119 working citizens aged 25-60 from GBA were interviewed through online questionnaire and street interview.

About FWD 

FWD Group spans Hong Kong & Macau, Thailand, Indonesia, the Philippines, Singapore, Vietnam and Japan. In Hong Kong, FWD offers life and medical insurance, general insurance, employee benefits, and financial planning. The life insurance and general insurance operating entities have been assigned strong financial strength ratings by international rating agencies — FWD Life Insurance Company (Bermuda) Limited is rated “A3” by Moody’s and “A” by Fitch; and FWD General Insurance Company Limited is rated “A” by Fitch.

FWD is focused on creating fresh customer experiences, with easy-to-understand products, supported by digital technology. Through this customer-led approach, FWD aims to become a leading pan-Asian insurer that changes the way people feel about insurance.

Established in Asia in 2013, FWD is the insurance business of investment group, Pacific Century Group.

For more information please visit WWW.FWD.COM.HK and WWW.FWD.COM.MO.



Media Enquiries:
Liza Wong
liza.wong@fwd.com
+852 2850 3986
Suki Kwong
suki.sy.kwong@fwd.com
+852 2850 3965
Vienne Kay
vienne.hl.kay@fwd.com
+852 2850 2959

24-hour Service Hotline 3123 3123 OR

LIVE CHAT