HKD6.4 million needed for retirement, majority lack financial confidence, survey finds

Widespread financial anxiety grips Hong Kong and Macau residents, with over 60% worried about their financial future despite expecting to retire at an average age of 62, according to a new survey.

The latest findings from FWD Hong Kong’s “Consumer Outlook Survey” reveal that the general public lacks confidence in their personal financial prospects, with more than six in ten respondents reporting that they feel “very anxious, somewhat concerned, or just getting by” about their personal financial situation.

As noted, the pressure stems from concerns over the next five to 10 years, with 58% of respondents most worried about “rising living costs,” followed by “high medical expenses” at 48%, and “not having enough savings for a comfortable retirement” at 47%.

Commissioned by FWD and conducted by an independent agency, the survey interviewed 1,008 Hong Kong and Macau residents aged 21 to 65 in the first quarter of this year.

Respondents said they expect to retire at an average age of 62 and estimate they will need HKD6.4 million in savings to fund their retirement. However, they anticipate their savings will last only 20 years – covering them until approximately age 82.

Yet according to the latest available data from 2023, the average life expectancy in Macau is 83.1 years.

The survey found that while residents have clear financial planning goals, there is a significant gap in execution. Different generations face different financial concerns.

The youngest cohort – aged 21 to 29 – expect to retire at 60, the earliest among all groups, and estimate they will need HKD7.6 million for retirement. However, less than 20% say they have taken active steps to secure their financial future.

Among those aged 30 to 44, 57% spend more than 20% of their income on financial support for parents or children, with 71% saying they prioritize “family emergency funds,” “children’s education,” or “parents’ future medical or long-term care.” Meanwhile, 29% admitted they lack confidence in covering a major unexpected medical expense for their family.

For those aged 45 to 65, 62% worry that their savings growth cannot keep up with rising living costs, and 36% plan to work part-time or in flexible arrangements after retirement to supplement their income.