Media365
Hong Kong boasts one of the world’s highest life expectancies, with residents expected to live, on average, at least 20 years beyond the traditional retirement age. While the gift of a longer life should be celebrated, it is essential to consider the financial implications.
This new era of longevity, compounded by market volatility and inflation, has created a critical gap in the market that must be addressed with new solutions. Individuals are living longer, and they are navigating market volatility, inflation and rising healthcare costs. Yet for many, the tools available have not kept up with the realities they face, according to HSBC, and while investors know what they need, the market has not yet delivered it.
The scale of the challenge is significant. According to the “HSBC Premier 2024 Affluent Survey”, Hong Kong’s affluent families believe they need an average of HK$20.9 million (US$2.7 million) in assets to secure an ideal retirement. Meanwhile, another recent survey by HSBC revealed that less than 40 per cent of individuals approaching retirement feel confident about reaching their financial goals.
In view of these needs, HSBC has launched a specialised suite of investment funds designed for retirees that could generate recurring income, preserve capital with moderate growth and offer liquidity for unexpected expenses. As the first of its kind in the banking sector, according to HSBC, these solutions aim to support customers’ retirement planning while focusing on the long-term value of their retirement assets. This initiative adds a new layer to HSBC’s already comprehensive retirement planning services by offering exclusive solutions developed in collaboration with leading asset managers, BlackRock, HSBC Asset Management and Schroders.
Mandy Lui, managing director and head of Greater China wealth at BlackRock, highlighted the importance of starting early and engaging in active risk management. “It is important to start thinking about retirement planning as early as possible and growing your wealth gradually,” she says, noting that as individuals age, they should be aware that their risk tolerance needs to change according to their lifestyle needs.
