Hongkongers might only get a third of current incomes upon retirement, Manulife study shows
- Hong Kong residents would like to have HK$21,287 (US$2,712) as monthly income upon retirement, but can expect to receive only about HK$10,000, insurer’s fund management unit says
- As inflation, medical costs and prices of daily necessities rise, ‘retirement savings and income will erode over time’, executive says
Hongkongers could take home only about a third of their current incomes upon retirement, says a study by Manulife Investment Management.
In reality, they can expect to receive only about HK$10,000 a month – about a third of their current incomes – according to Retirement Income Forecaster, a new online tool launched by the fund manager. The tool based its calculations on respondents’ age, salaries and investment assets.
“There is clearly a huge gap between Hongkongers’ expected retirement expenses and the amount of retirement income they can confidently achieve per their current financial status,” said Elvin Tharm, head of retirement proposition, strategy and transformation, Asia retirement, at Manulife Investment Management.
“People in Hong Kong – and in fact across Asia – are facing a challenging situation in bridging this gap. With inflation, medical costs and prices of daily necessities on the rise, their retirement savings and income will erode over time.”
