A clear fissure between generational lines has emerged between younger and older Hongkongers in terms of their retirement expectations, according to JP Morgan Asset Management’s (JPMAM) Hong Kong Retirement Readiness Survey.
On average, Hongkongers aged between 30 and 40 said they could expect to retire by the age of 61. In contrast, those aged between 51 and 60 estimate 64 to be the average retirement age for their group.
In addition, the younger cohort think HK$3.6 million (US$462,162) will suffice for retirement in comparison to the US$552,026 cited by the older generation. This comes amid a backdrop where Hongkongers aged 65 today are expected to live until approximately 85 years of age and as the trend of longer lifespans continue, this could increase for the younger generation.
Compounding these issues, those aged between 30 and 40 years of age said 36% of their retirement portfolios are allocated to cash and insurance, meaning they may not be investing sufficiently for growth. Meanwhile, those aged between 51 and 60 have a bolder approach, holding some 30% of savings in stocks.
“These findings suggest the younger generations may not have realistic expectations about retirement, raising concerns about preparedness,” said Wina Appleton, APAC retirement strategist at JPMAM.
“For their financial health, it’s important that younger workers have an investment plan to use the advantage of time to accumulate wealth. Unfortunately, by the point at which many individuals gain a more realistic idea of their spending and savings needs, they have often lost the benefit of time to compound returns.”
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