Middle class needs $20m assets to retire

Melody Chen

Hong Kong's middle class needs an asset portfolio of over HK$20 million to maintain a monthly income of HK$27,000 for retirement, according to the HSBC Premier 2024 Affluent Survey released yesterday.

The survey was conducted in August, and polled a total of 1,057 individuals aged 24 and above who have at least HK$1 million in liquid assets, including 880 people aged 25 to 64 and 177 retirees aged 60 to 80.

Interviewees were asked to estimate their anticipated retirement expenses, financial goals, assets and investments. Their ideal retirement investment portfolio might include a self-owned and mortgage-free property, extra reserve for unforeseen medical costs, and sufficient savings and investments. Some of them also would like the portfolio to include an additional property that provides steady income through rental.

The survey found that Hongkongers start preparing for retirement at an average age of mid-40s. Nearly 75 percent of middle-class individuals born in the 1980s and 1990s want to plan early, but 45 percent have not taken any actual steps.

Just 38 percent of respondents who are not yet retired feel confident about reaching their target asset size by their desired retirement age. 65 percent of middle-class individuals desire to diversify their investments to better prepare for retirement funds amid market volatility.

Meanwhile, 80 percent of respondents support an average of three family members, including themselves. About 50 percent of retired individuals with children have postponed their retirement plans, with an average delay of seven years.