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Mark Gong

Young Hongkongers are struggling to make ends meet and many employees are living paycheck to paycheck which is posing a risk to their mental health, according to a survey by advisory firm WTW.
The survey polled 1,000 employees in both medium and large private sectors during the period January to March 2024 and found more than half the respondents considered themselves at risk or struggling financially, while more than a third said they were living paycheck to paycheck.
Financial stress is also weighing on the mental health of employees, with 63 per cent of those surveyed saying their mental health was being impacted by financial worries.
“High inflation combined with the aftermath of a once-in-a-generation pandemic is still causing many employees to feel overwhelmed,” said Eric Lam, the head of health and benefits at WTW Hong Kong and Macau.
“[Hongkongers are] discouraged about their financial situation, which is affecting overall well-being.”
Some 28 per cent reported increased anxiety and stress due to their financial situation, which was further impacting their engagement and productivity at work, as well as their emotional health.
The survey also found that workers felt a lack of confidence in their economic situation for the coming year, with nearly a third reporting they expected their financial situation to deteriorate over the next 12 months.
The challenging financial circumstances are also affecting employees’ retirement plans.
More than half of employees reported that they were unable to improve their retirement situation.
William Chow, the head of retirement at WTW Hong Kong and Macau said that one quarter of Hong Kong employees indicated they plan to continue to work past the retirement age of 65.
The number has grown since the pre-pandemic era when only 17 per cent of the employees surveyed wanted to work past the official retirement age.
At the same time, 72 per cent of employees admitted that they are not saving as much for retirement as they would like, compared with 69 per cent in 2019, according to Chow.
The dire retirement situation has also added most stress on younger and mid-level employees, who were the least confident.
Over a quarter of employees aged 40 to 49 consider themselves at risk, meaning they are unable to save the generally advised 8 per cent of their income for retirement. This compares to 21 per cent for those over 50.
Gender disparities also exist, with 60 per cent of men feeling confident about their retirement savings, compared to 66 per cent of women.
According to the Census and Statistics Department of Hong Kong, the number of senior citizens will nearly double to 2.74 million by 2046, up from 1.45 million in 2021. This demographic shift suggests that more than a third of Hong Kong’s population will be senior citizens by 2046, putting further strain on the economy and its citizens.
“Employers should continue to take action to improve financial well-being within their organisation”, Lam commented “These can include adequate education for employees to help plan their resources and close financial gaps, as well as connecting employees with relevant elements of their total rewards package.”


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Over half of Hong Kong employees are struggling or at risk financially: survey

People walk on a footbridge in Central during lunch time. More than half of Hong Kong employees are at risk or struggling with respect to their finances, according to a survey by advisory firm WTW. Photo: Jelly Tse

Business

The survey, which polled 1,000 employees in both medium and large private sectors, found more than a third were living paycheck to paycheck


Young Hongkongers are struggling to make ends meet and many employees are living paycheck to paycheck which is posing a risk to their mental health, according to a survey by advisory firm WTW.


Hong Kong

Banking & finance

Wealth management

Over half of Hong Kong employees are struggling or at risk financially: survey

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;}The survey, which polled 1,000 employees in both medium and large private sectors, found more than a third were living paycheck to paycheck

The survey, which polled 1,000 employees in both medium and large private sectors, found more than a third were living paycheck to paycheck