Nearly 80% of retired Hongkongers also rely on financial support from family.
COVID-19 has casted a substantial drop on retirees’ travelling and dining-out expenses, with their actual monthly expense averaging HK$11,500, according to the latest survey by non-profit professional organisation Institute of Financial Planners of Hong Kong (IFPHK).
IFPHK’s report also found that close to 80% rely on financial support from family, indicating that some of their living expenses are most likely paid by family members. At the same time, the supported amount stands at around 33.5% of the family members’ daily living expenses on average.
Of the monthly income that retirees used to pay their expenses, only 1.3% was from annuity, totaling 28% of passive income including insurance and investment returns which seems unsatisfactory.
Moreover, personal servings are the most often “income source” of retirees. The survey found that 26.4% and 5.4% of the daily expenses of retirees are paid by personal savings and mandatory provident funds, respectively.
45% of retirees are also vigilant and unsettled about their financial status, according to the survey. Only 14% said they felt secure about their financial status and had no sense of crisis.
“Despite the fact that close to half of the retirees have stayed vigilant about their financial status, family or friends were still whom they turned to for wealth management related information. This suggests that there is more work to do on promoting professionalism of the wealth management sector in Hong Kong,” IFPHK chairman Ray Lee said.
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