Seven in 10 Hong Kongers expect to work after retirement as savings will not be enough to provide quality of life: HSBC survey | ET REALITY

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Seven in 10 Hong Kongers expect to work after retirement as savings will not be enough to provide quality of life: HSBC survey

More than 70 percent of Hong Kongers expect to work after they retire, as the high cost of living in the city translates into a large gap between expected savings and the amount needed to live comfortably, according to a study by HSBC released on Monday.

However, the survey also showed that Hong Kongers are less likely than their peers elsewhere in the world to want to relocate in search of a better return on their retirement savings.

Hong Kongers believe they need $1.1 million to live comfortably after retirement, second only to those in the US at $1.2 million, according to HSBC’s inaugural Quality of Living Report. which is based on a survey of 2,250 people with up to 2 million dollars. in investment assets in March and April of this year.

The amount needed to live comfortably is $940,000 in Singapore, $930,000 in mainland China, $830,000 in Malaysia, $760,000 in the United Kingdom and $710,000 in the United Arab Emirates. People expect to need significantly less savings in Mexico ($520,000) and India ($300,000).

Sunlight passing through an advertising billboard casts colors along a pedestrian walkway in Admiralty, Hong Kong, on September 18, 2023. Photo: Jelly Tse

Hong Kongers face the biggest gap between their savings and their target, $815,000, compared to $733,000 for Americans and $692,000 for Singaporeans. India has the lowest deficit, $217,000, according to the survey.

As a result, seven in 10 people in Hong Kong believe they will need a part- or full-time job after they retire.

Hong Kong’s mandatory retirement savings scheme, the Mandatory Provident Fund, averages just HK$236,800 (US$30,359) for each of its 4.7 million members, based on assets of 1.11 trillion Hong Kong dollars at the end of June, according to data provided by research. firm MPF Ratings.

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HSBC’s research echoes another recent study by BOC Group Life Assurance and the Golden Age Foundation, published last month, which said retirees in Hong Kong face a average monthly deficit of HK$5,000.

“Post-retirement concerns such as cost of living and healthcare burdens underscore the importance of comprehensive, personalized estate planning to ensure quality of life and prepare for the unexpected,” said Maggie Ng, chief wealth officer. and HSBC staff. banking in Hong Kong.

The HSBC study found that 24 percent of Hong Kongers want to go to work or retire in other markets to achieve a better quality of life, lower than the average of 27 percent in the nine markets surveyed. The figure in Malaysia is 37 percent, 32 percent in the United Arab Emirates and India, and 26 percent in Mexico and Singapore. Only the United States (23 percent), the United Kingdom (19 percent) and mainland China (18 percent) show less willingness to relocate.

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Hong Kongers want to retire at age 60, as in other markets, where the expected retirement age ranges from 57 to 62.

Younger people want to retire earlier and are more likely to explore work in other markets. Across all nine markets, 38 percent of millennials (ages 25 to 39) plan to move, compared to 23 percent of Gen Xers (ages 40 to 54) and 20 percent of babies boomers (55 to 69 years old). Millennials aim to retire seven years earlier than boomers, on average, according to the survey.

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