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Article

Lack of financial reserves can ruin your retirement

3-min read

Healthy body Healthy finances Healthy mind

People in Hong Kong are living longer and longer. That means they are enjoying longer retirements. But not everyone knows how to plan financially for these longer golden years. If you don't have enough financial reserves, you may have to postpone the day you retire or suffer a lower quality of life in retirement than you hoped for.
The answer is to start preparing for your retirement as early as possible. Start a comprehensive savings and investment plan and then step by step you will gradually grow your personal financial reserves for your retirement. A happy retirement is within your grasp.

According to the Census and Statistics Department, the expectation of life at the birth in 2020¹:
82.7 for male
88.1 for female

Retirement reserve shortfall has reached record high, the shortfall has reached a record high of 223 million (HKD). ²

The value of capital will be whittling away in times of high inflation
Around 80%² interviewees agree their retirement reserves will depreciate with time, noting the importance of finding ways to grow their retirement reserves

Make a financial plan and take steps towards the dream retirement

Set a clear target and plan early: Picture the ideal life you want after retirement and work out how much you will need for your expenses. Set a clear saving goal accordingly and start your financial planning as early as possible. Review your progress regularly and adjust your saving strategy from time to time should your needs and capabilities change.
Gain knowledge: Learning how to manage your wealth successfully requires specific knowledge. So you will need to continuously improve your knowledge to secure your savings and protect them from the impact of inflation.
Make good use of wealth management tools: Choose appropriate wealth management tools according to your personal appetite for risk and your overall financial status to enjoy capital appreciation.
Seek expert opinion: You can also choose an insurance plan as one of your financial tools and seek advice from financial planning consultants. Pick a suitable insurance plan, and you will be able to enjoy a fulfilling retirement.

"Hong Kong Population Projections 2020-2069" published in September 2020 by Census and Statistics Department
The 12th AIA Desired Retirement Tracker conducted between October 19 and October 29, 2020, interviewed with a total of 1,000 working people in Hong Kong aged 18-65 with at least one MPF account. The entire survey was conducted by Cimigo, an independent market research firm.

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