Hongkongers' monthly savings rise to $9,800

This represented a 10% increase from last year.

The average monthly savings of Hongkongers has risen to $9,800, reflecting nearly a 10% increase from last year, according to Hong Kong Deposit Protection Board’s survey. 

The survey, which polled 1,001 Hongkongers, revealed that 20% of respondents with saving habits have set a yearly savings target of $307,000 on average, reflecting a 68% surge from last year. 

Amongst those who have a saving target, two-thirds are confident in meeting their targets, whilst 40% said their savings are for “unexpected needs” (39%) and “preparing for retirement” (26%). 

The overall sense of security regarding savings remained stable, scoring 53.5 out of 100. Nearly 75% of respondents rated their sense of security at 50 or above, with 17% assigning a score of 80 or above. 

Respondents indicated that an average of $1.03m is needed to feel financially secure, representing a 5% decrease from the previous year.

The survey also showed an increase in savings habits among pre-retirees, with over 80% actively saving, a 10 percentage point rise from 2019. Their average monthly savings stood at $9,600, slightly below the $9,900 recorded in 2019. 

Pre-retirees estimated they would need $5.45m in savings to feel secure for retirement. The most common methods of saving for retirement include bank savings (57%) and investments in financial products (30%). 

Persistent cost-of-living increases remain a challenge, with pre-retirees saying they would consider part-time work (34%), reducing expenses (17%), or delaying retirement (17%) to maintain financial stability in case of insufficient savings. 

The average planned retirement age for pre-retirees is 64 years old, with good health (79%), sufficient savings (43%), and a stable residence (28%) identified as the top contributors to a sense of security in retirement.