Thus, younger workers are delaying retirement to increase savings.
9 in 10 (95%) of Hong Kong investors regret the fact that they have insufficient savings for life after work – a figure considerably higher than the global (66%) and Asian (89%) average - according to Schroders Global Investor Study 2017.
Schroders found out that savings investment is the main source of retirement income for Hong Kong investors (30.9%), followed by company pension (18.3%) and personal pension (15.4%).
For investors that are still active in the workforce, more than half (61%) fear that their retirement income will not be sufficient to provide for a comfortable life – a significantly higher figure than the global (34%) and Asian (37%) average.
Hong Kong investors admit that their current savings rate of 10.8% of their annual income is insufficient as they believe that they should be saving up to 16.6% in order to set them off for a comfortable life after work.
Thus, Schroders notes that investors are filling in the savings gap by working longer and delaying retirement in an effort to save more as non-retired investors expect to retire at 60.6 years despite wanting to retire earlier at 58.9 years old.
“The high percentage of retired investors who wish they had saved more for retirement, and non-retired investors who report their current savings level may not be adequate, indicates that the challenge to fund a comfortable retirement is an issue that everyone faces,“ said Schroders Head of Institutional Business Kelvin Lee.
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