Staff reporter
Hong Kong's younger workers are delaying their retirement plans to fight against inflation, a survey shows.
Twelve percent of the city's workers have postponed retirement, compared to only 9 percent of retirees who did the same, reflecting changing economic conditions and personal circumstances, the Sun Life survey showed.
Sun Life polled over 3,500 respondents across mainland China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore and Vietnam, about their aspirations and planning practices. The majority of respondents had a minimum age of 30.
Among the reasons cited for delaying retirement, 58 percent said they need to save more, 47 percent wanted to cover increased living expenses, while 35 percent wanted to stay physically and mentally active in old age.
However, 46 percent of respondents will begin preparing their financial plans within five years or less before retirement, while 17 percent will not plan for this at all, the survey showed.
Current workers expect to retire at an average age of 66, five years later than the average age of 61 for current retirees.
Although the majority of respondents set aside at least 10 percent of their income for retirement savings, 22 percent have not allocated any funds for this purpose.
Meanwhile, an alarming 28 percent of retirees said they had not planned for retirement expenses while 11 percent felt caught off guard by spending that exceeded their expectations. The key factors contributing to higher costs are the general cost of living and healthcare expenses.
As a result, 71 percent have been forced to cut spending, and 57 percent have had to forego medical treatment for certain conditions.
Eight percent of today's retirees express regret over past financial decisions with 80 percent highlighting the biggest reasons being not investing wisely, followed by not saving enough, and not planning for healthcare costs.
Young Hongkongers want to save more. Sing Tao
