Survey Sheds Light On What Hong Kong Citizens Hope For, Expect With Investments

Tom Burroughes

19 July 2017

The gap between what Hong Kong citizens aim to have in retirement funds and what actually is the case has widened this year, while younger adults are often ignorant of what they need to finance their old age, according to an annual survey of attitudes by .

AGI’s Retirement Confidence Survey – the fourth it has issued - showed that Hong Kong citizens’ total expected ideal retirement funds had risen to HK$5.1 million ($653,458), a 17 per cent increase compared to last year; this is the higher level in the survey’s history. Hong Kong people expect to accumulate actual retirement funds of HK$3.19 million, equivalent to 62 per cent of their stated ideal total, with a gap of HK$1.92 million.

The survey took place in April 2017, where AllianzGI commissioned Neilson, an independent market research company, to interview a random sample of 800 respondents aged 25 – 64. While the report did not explicitly single out high net worth individuals in the sample, the responses may have some indicative value as to the hopes and expectations of wealthy as well as mass-market investors.

The survey results also show that only 29 per cent of people feel confident about their retirement, a slight fall from the previous year. Respondents cited concern over the economic outlook and a depletion of consumption power as reasons for their lack of confidence.

The ideal retirement age for respondents is 61.4, while the average planned age of retirement is 62.

Year-on-year, respondents in both categories stated they would postpone retirement by 0.2 years. According to the survey, 61 per cent of respondents also said their main investment goal is to protect themselves against inflation.

The younger generation tends to underestimate their retirement needs, the survey found. In this age group, ideal and actual retirement funds are projected at HK$4.54 million and HK$2.75 million respectively, lower than most other age groups. Moreover, among respondents aged 25-34, 47% said they are still too young to prioritise retirement planning.

Additionally, 40 per cent of this age group stated they prefer to spend on overseas travel rather than save for retirement.