Hongkongers’ retirement portfolios will be harder to build as rates fall, analysts say
Lower interest rates will make it harder for Hongkongers to build an ideal retirement portfolio of more than US$2.6 million, analysts say
The ideal portfolio also needs to possess savings or investments valued at HK$7.5 million to HK$13 million from deposits, stocks or real estate investments to generate a regular monthly income of HK$27,000, the HSBC survey showed. Lower rates will hurt people who rely on bank deposits to generate the monthly income, based on a calculation made by the Post.
“Our survey also reveals significant retirement expenses for affluent families, highlighting the importance of starting retirement planning early to maximise long-term growth potential,” said Brian Hui, the head of customer proposition and marketing for wealth and personal banking at HSBC Hong Kong.
The survey, conducted in August, asked 1,057 people with at least HK$1 million in liquid assets about their retirement planning.
Most respondents said they started planning for retirement at age 45 with an eye toward quitting at 60, but 38 per cent of those surveyed said they might need to toil beyond that to make more money. People with children need to work for seven years longer than people without kids, the survey revealed.
Last week, commercial banks in Hong Kong lowered their prime lending rates and deposit rates by a quarter-point, the first cut since 2019; analysts expect further reductions next year.
