How much recurring retirement income can Hongkongers get?
The ideal amount for Hongkongers is $21,287 per month.
Working Hongkongers will likely get a monthly retirement income of less than one-third of their current income when they retire, Manulife Investment Management revealed.
Based on Manulife’s Retirement Income Forecaster, a 32-year-old worker who earns $29,000 per month and has investible assets of $750,000 will likely receive $9,200 monthly income in retirement.
A double-income couple with young kids can receive a combined monthly income of $22,800 when they retire, only if Partner A is 42 with a monthly income of $62,500 and investment amount of $1.5m, and Partner B is 37, earning a monthly income of $41,700 and has investible assets of $1m.
A person aged 52 with a current monthly income of $166,700 and an investment amount of $4m can also expect a post-retirement monthly income of $22,800.
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Meanwhile, a double-income couple who are about to retire can expect a combined monthly retirement income of $14,300 given that Partner A is 64, a full-time worker, has a current monthly income of $83,300, and investment amount of $2m, and Partner B is 62, works part-time and has a current monthly income of $20,800 and investible assets of $2m.
Hongkongers said they must receive $21,287 per month after retirement to maintain a comfortable lifestyle in retirement.
“There is a huge gap between Hongkongers’ expected retirement expenses and the amount of retirement income they could confidently achieve, per their current financial status. People in Hong Kong, and fact across Asia, are facing a challenging situation in bridging this gap. With inflation, medical costs, and prices of daily necessities on the rise, their retirement savings and income will erode over time,” Manulife said.