Sun Life HK, HKMC partner to promote flexible retirement planning programmes

Hongkongers expect to retire at an average age of 66.

Sun Life Hong Kong has partnered with the Hong Kong Mortgage Corporation Limited to refer clients to the Policy Mortgage Programme and Reverse Mortgage Programme, which offer retirees flexible retirement planning solutions. 

These programmes enable retirees to convert life insurance policies or residential properties into monthly payouts, providing a steady income stream to improve their quality of life during retirement. 

According to Sun Life’s July report, Hong Kong workers now expect to retire at an average age of 66, five years later than the current average retirement age of 61. The report showed that 12% of non-retirees and 9% of retirees have chosen to delay their retirement plans due to economic conditions and personal circumstances, respectively. 

Many retirees face financial strain, with 57% citing rising living costs and 43% pointing to increased healthcare expenses as reasons for spending more than anticipated.

Consequently, 71% of retirees have reduced their spending, whilst 57% have foregone medical treatment for certain conditions, revealing significant gaps in retirement planning. 

The issue is compounded by Hong Kong's rapidly ageing population, with government data showing that 20% of residents were aged 65 or older in 2021, and this figure is projected to rise to one in three residents by 2046.