Survey Reveals Need for Hong Kong's Working Population to Refocus on Retirement Planning as It Embraces a Post-pandemic World

HONG KONG SAR - Media OutReach - 8 February 2023 - Retirement savings, retirement investments, medical protection, and physical and mental wellbeing are the four essential components of an ideal retirement life. However, many Hong Kong workers experienced disruptions to their retirement planning due to COVID-19. Now, with society gradually moving towards a post-pandemic world, AIA Hong Kong has announced the results of its "14th Desired Retirement Tracker" (the survey), which analysed Hong Kong workers' changing attitudes towards retirement preparations amidst the resumption of normal activities and revealed their views according to the four primary aspects of retirement. Key findings were as follows: Retirement savings

• Forty-seven percent of respondents have increased their personal savings over the past three years (i.e., during the COVID-19 pandemic). Of these, 41% have achieved extra savings of more than HK$40,000.

• Seventy-three percent of respondents said they will increase their entertainment spending as their social lives return to normal. Well over half (58%) plan to use their savings for so-called “revenge” travel, while 46% plan to travel in the next three to six months with an estimated budget of HK$22,918 (median).

Medical protection

• Among respondents who have been infected with COVID-19, 80% agree life is fragile and that they should enhance their medical protection. However, only 17% have purchased additional medical insurance since having the virus.

• Among all respondents, 22% do not have any medical insurance and 13% have group medical insurance only, meaning 35% may lack medical protection after retirement.

Physical and mental wellbeing

• Fifty-eight percent of respondents prefer a hybrid working mode and hope to work from home an average of 2.8 days per week. However, 76% think that work-from-home arrangements cause the boundary between work and personal life to blur.

Retirement investment

• Seventy-eight percent of respondents would like to have sustainable investment elements in their retirement investment portfolios, while 80% admit that they do not know how to choose ESG MPF products.

Retirement savings: affected by revenge consumption and travel The survey revealed that nearly half of respondents (47%) have increased their personal savings over the past three years due to reduced travel or shopping. Of these, around 40% have achieved extra savings of over HK$40,000. Also, after three years of pandemic restrictions, people are ready to increase their spending on entertainment and travel: 73% of respondents will spend more on entertainment as social life returns to normal; 58% plan to travel; and nearly half (46%) plan to travel in the next three to six months, with an estimated budget of HK$22,918 (median) to include flight tickets, accommodations, shopping, etc. Medical protection: people agree on its importance but fail to act The survey also explored views on medical protection among respondents who have been infected with COVID-19. Eighty percent said "life is fragile and [I] should enhance [my] medical protection", yet only 17% have purchased additional medical insurance since they had the virus, demonstrating that only a small portion of people have taken action to acquire additional medical protection. Respondents gave three main reasons as to why they have not purchased additional medical insurance: 42% said they plan to use only public medical services in the future, 38% have insufficient funds, and 19% think the protection provided by their employer's group medical insurance is adequate. Among all respondents, more than one fifth (22%) do not own any individual medical insurance and 13% have group medical insurance only, which means 35% of respondents may lack medical protection after retirement. As medical expenditures increase with age, their retirement savings may be insufficient for their actual needs. Physical and mental wellbeing: work-life imbalance affects health As society returns to normalcy, some businesses have gone back to office working arrangements. However, the survey revealed that nearly 60% of respondents (58%) prefer a hybrid working mode (i.e., one that gives employees the flexibility to work from office or home) and hope to work from home an average of 2.8 days per week. However, there were underlying concerns. Seventy-six percent of respondents agree that work-from-home...