40% are willing to sacrifice part of their wages for a better retirement benefit scheme.
Retirement has become a looming issue in ageing Hong Kong as 58% has been seeing it as an important issue for the past two to three years. In fact, only 1 in 3 are confident to say can have a comfortable retirement as they have enough resources, a study by global advisory firm Willis Towers Watson found.
According to the study, a majority of Hong Kongers do not priorities finances geared towards retirement until they reach their 40s.
“Employees at age 40 and above have stronger desire to save for retirement but starting from age of 40 is already quite late to accumulate adequate amount,” Willis Towers Watson head of retirement Elaine Hwang noted.
Hwang also said that employees have been eyeing for their employer’s retirement plans as their primary means for retirement finances. In fact, 4 in 10 employees said that they are willing to shred a part of their paychecks for better employer-provided retirement benefits whilst 30% revealed that they are up for paying more on a monthly basis for a more generous healthcare plan.
“The HKSAR Government’s recent proposal to increase the relevant income cap and to offer tax incentive to employee voluntary contributions in the Mandatory Provident Fund (MPF) plans have coincidently addressed this needs to a certain extent, and demonstrates Government’s ongoing commitment of encouraging retirement savings,” Hwang commented.
Meanwhile, the survey also found that more than half (54%) of Hong Kongers were willing to keep working for some time before their full retirement. This plan was strongly observed in highly engaged employees aged 40 and above.
“Phased retirement seems to be an excellent idea for both employers and employees,” Hwang said. “Whilst employers may transition duties and knowledge through a smoother and more gradual process, employees can also leverage on this opportunity to continue to contribute to their employers while take a chance to become more adaptive to retirement life.”
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