Date
19 September 2017
More than three in four Hong Kong people worry about running out of money in retirement. Eight in 10 are concerned about not having enough to live on after their working days are over. Photo: HKEJ
More than three in four Hong Kong people worry about running out of money in retirement. Eight in 10 are concerned about not having enough to live on after their working days are over. Photo: HKEJ

HSBC: Hongkongers struggling with retirement savings

Hong Kong people are planning to save a third of their annual income for retirement, a global survey by HSBC shows.

The figure is the highest among 15 markets.

Taiwanese plan to put away 30 percent of their money into a retirement fund, followed by Singaporeans at 29 percent, Indians (26 percent) and Malaysians (24 percent).

Americans and the French plan to save just 14 percent of their income for retirement, behind the Australians at 15 percent.

However, saving enough for a comfortable retirement is proving difficult, HSBC said.

More than three in four Hong Kong people worry about running out of money in retirement compared with the global average of 67 percent.

Eight in 10 are concerned about not having enough to live on after working. The global average is 64 percent.

“Even with the strongest intentions, Hongkongers are struggling to get back to saving mode for retirement even as the global economy slowly recovers,” Diana Cesar, HSBC head of retail banking and wealth management for Hong Kong, said.

“For example, the recent downturn has left people to prioritize other financial obligations such paying off the mortgage, funding education and day to day expenses,” she said.

Workers’ ability to save for retirement is mainly threatened by the long-term effects of life events and the recent economic downturn, the survey shows.

More than a third of Hong Kong workers say unexpected illness stopped them or their spouse from working, which has a knock-on effect on their retirement plans.

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