More Than Half of Hong Kongers Yet to Start Saving for Retirement
57 percent of individuals in Hong Kong have not started saving for retirement – including a staggering 40 percent amongst those aged 50 or older – according to a recent survey by Franklin Templeton.
The matter is further exacerbated as 32 percent of Hong Kong respondents depend on personal savings as the top retirement funding source placing the group at the top ranks in the Greater China survey in front of Taiwan (28 percent) and mainland China (25 percent). This differs from western counterparts where government or company-sponsored retirement plans are popular options.
68 percent of pre-retirees were behind their retirement goals with a significant gap. The average retirement target savings amount and the average actual current savings is HK$5.7 million ($730,000) and HK$1 million ($130,000), respectively.
«We believe there is a need to raise the awareness of retirement financial preparation across all generations – be it millennials who desire to retire early, or pre-retirees who plan to delay their retirement,» said Alan Young, head of institutional business for Greater China at Franklin Templeton.
Investment Preferences
In terms of investments, 66 percent of respondents prefer equities, believing they are crucial retirement holdings to generate dividends. Interestingly, 41 percent of respondents in Hong Kong think the incorporation of ESG investment factors in retirement plans is important and the preference was more prevalent amongst millennials.
The self-directed tendency in Greater China remains prominent with just 32 percent of respondents claiming to work with a financial advisor on retirement planning, though 53 percent claim them to be an essential partner.
The Retirement Income Strategies and Expectations (RISE) survey released was the first of its sort for Franklin Templeton. More than 2,000 in Hong Kong and tier-1 cities in mainland China were surveyed by an independent firm, Nielsen Company (Hong Kong) Limited.
