'$5.9m and a home' now defines middle class

Hongkongers believe they should have at least HK$5.9 million in liquid assets and own a property to reach middle-class status, according to a survey by the Hongkong and Shanghai Banking Corporation.

And early planning and strong financial discipline are considered key to reaching that status and sustaining it into retirement.

Since the Covid pandemic struck about 41 percent of the middle class have turned cautious with investments, and 60 percent prefer to hold more cash in hand.

The study also found that property is still considered the best way to preserve wealth.

On buying property in the coming two or three years, nearly 40 percent of 1,043 respondents showed an interest in local property while 20 percent were looking overseas.

Sami Abouzahr, head of investments and wealth solutions, wealth and personal banking, expects interest rates to peak next year and suggests investors focus on products with fixed yields and low risks.

Meanwhile, children's education is a key priority for the SAR's middle class with one in three respondents saying they intended to send their children to study abroad, which could cost about HK$1.53 million on average.

And when the hard work is done, more than half of millennial respondents are keen to retire early, with an average age of 56 being viewed.

To achieve early retirement, though, 61 percent of them would cut expenses and 55 percent take part-time jobs or set up a business to increase income.

HSBC has also launched a "future plan" platform to help investors keep track of their short-term and long-term financial goals, which aims to support them achieve early retirement.