The median of current individual total assets is only $750,000.
Hong Kong residents need around $4.5m to be able to afford retirement living, according to a study by AXA Hong Kong. However, data showed that the median of their current individual total assets is only $750,000.
In terms of generation, 35% of those born in the 1970s have individual total asset value of less than $250,000. Meanwhile, more people from the younger generations born in the 1980s (41%) and 1990s (72%) have individual total asset value of less than $250,000. Moreover, more than half (55%) of those who were born in the 1980s and 1990s lack confidence in having enough retirement savings, and nearly 40% (39%) said that they might become a burden on their children in the future.
The study also found that over two-thirds of respondents (67%) believe that the concept of raising children for preparing retirement is outdated. Moreover, 26% of the parents who were born in the 1960s and 1970s have provided or will continue to provide monthly living expenses for their adult non-school children.
“Some middle-aged parents need to prepare for their own retirement whilst taking care of their adult children. Hence, the young generations need to prepare for their retirement lives earlier to avoid being a burden on their parents,” Kevin Chor, chief life product & commercial development officer of AXA Hong Kong and Macau said in a statement.
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