A mid-life crisis: More than 1 in 2 middle-aged Hong Kongers unprepared for retirement
43% even said that they had to reduce retirement contributions since the COVID-19 pandemic.
More than 1 in 2 middle-aged Hong Kongers or those between the ages of 45 and 64 have not started planning for their retirement despite being plague with worries about healthcare costs and increasing financial burden with their family, a report by St. James Place revealed.
The study found out that 56% have became more concerned about their finances since the COVID-19 pandemic started. However, 43% said they had to reduce retirement expenses due to economic disruptions brought about by the pandemic.
This then resulted to six out of 10 Hong Kongers becoming worried about their ability to cover healthcare cost during their retirement whilst 62% have said they are worried about becoming a financial burden to their families.
Lack of awareness
The study said that inaction in preparing for retirement may be because of the lack of awareness. The survey revealed that three out of five middle aged Hong Kongers do not fully understand the financial products and services available to help them plan for retirement whilst 73% have not accounted for inflation in their financial planning.
Meanwhile, 65% of Hong Kongers ages 45 to 64 lack understanding about how to manage generational wealth and conduct an intergenerational wealth transfer. More than half (54%) have stated that this has now become a source of stress for them with 44% saying that it has already caused disharmony amongst family members.
Despite lack of awareness and general unpreparedness for retirement, Hong Kongers are very welcoming when it comes for professional advise on their financials.
In fact, 70% of Hong Kongers have sought out professional advice before making any major financial decisions. Seven out of 10 said they prefer face-to-face financial advice.
Meanwhile, most Hong Kongers seek professional advice for investments (83%), retirement planning (74%), and insurance (69%).
In Hong Kong, the retirement age is 65.