Aside from the foreboding when people realise they should be saving and investing far more towards their retirement, a study has shown there is a ray of hope as more become aware of their fiscal obligations for later life.
Despite the stark overall impression from Fidelity's recent survey into attitudes among Hongkongers towards MPF retirement savings - in which more than half of respondents 'couldn't care less' - there were also more encouraging findings.
The level of preparation had improved from 2008, with the Fidelity Retirement Readiness Index 2010 increasing from 43 per cent to 54 per cent as more people recognise the need to save or invest for retirement.
An encouraging 42 per cent are starting to save under the age of 30, compared with 35 per cent in 2008, with the average age being 31, a year younger than in 2008.
Since the financial crisis of 2008-2009, people have become more aware and realistic about the importance of managing their investments and savings for retirement, says Kerry Ching, Hong Kong's managing director at Fidelity International. She says people have become more aware that a gap exists between how much they save and how much they will really need. The gap in terms of expectations and reality is about HK$1million.
'Although there have been improvements over the past two years, a significant gap remains between retirement income expectations and the reality of retirement needs,' Ching says.
