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Many Hongkongers must work past retirement age as they face US$300,000 shortfalls in their average pension savings: Schroders survey
- Almost three quarters of respondents believe they will need to work beyond retirement age, Schroders survey showed
- Younger people tend to choose conservative investment options, only realising too late that their retirement needs will not be met
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The average Hongkonger faces a HK$2.4 million (US$300,000) gap between their expected post-retirement expenses and the money available in their pension funds, according to a survey released on Tuesday.
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As a result of the eye-watering shortfall, almost three quarters of people believe they will need to continue to work beyond the expected retirement age, according to the recent survey of 1,000 Mandatory Provident Fund (MPF) members carried out by Schroders.
There is no official retirement age in Hong Kong, but most companies require staff to call it a day between 60 and 65 years of age.
The findings echoed a survey by HSBC Holdings released in September last year, which found that 70 per cent of respondents expected to have to work beyond the unofficial retirement age.
In comparison, only 40 per cent in the US share this belief, according to Schroders, a London-headquartered fund house with £750.6 billion (US$957 billion) of assets under management globally. It also manages HK$241 billion (US$30.7 billion) in retirement investment funds in Hong Kong.
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China’s elderly are heading to retirement, here’s why that’s a problem
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“While many Hongkongers are willing to work in retirement, our global experience in pensions investment suggests that working longer is not necessarily a solution to financial shortfall,” said Lesley-Ann Morgan, global head of pensions and retirement at Schroders, in a media briefing about the survey.
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