It’s paycheque to pension, as Hong Kong millennials plan ahead sooner than Asian peers

Many see Hong Kong millennials as living from paycheque to paycheque and not committing to a long-term plan – but they actually lead their Asian peers in retirement planning, according to new research from BlackRock, the world’s biggest asset manager.

Four out of five Hong Kong millennials (aged between 25 to 35) have already started preparing for retirement, the highest ratio across Asia-Pacific, with a majority of them betting their financial future on buying stocks, the study shows.

The young Hongkongers’ high proclivity for retirement savings is against the backdrop of notoriously high living costs in the city and escalating global economic uncertainties, noted the report, which polled 28,000 investors across the world.

“These findings are contrary to the common view that the city’s millennials would rather splurge on holidays and nice food than save for their long-term future,” said Julia Lee, BlackRock’s head of Hong Kong retail business.

The study found that 81 per cent of Hongkongers aged between 25 to 35 said they had already begun retirement planning, compared with 69 per cent for their Asia-Pacific peers.

They are also much more likely to take risks, with more than two thirds pouring money into equities in their investment portfolios, whereas only 42 per cent of their regional counterparts would do the same.