Into retirement
Reap the rewards of the race throughout your life journey and stay classy in retirement.Overall, Hongkongers are underestimating the longevity effect – the risk of outliving their assets and savings.
Schroders survey respondents expect only 15 years of retirement on average even though retirement can last for an average 22 years in reality.
You may need to be even more financially prepared to fund your lifestyle and needs in retirement.
Source: Schroders Hong Kong Retirement Survey 2024; Census and Statistics Department, Hong Kong SAR Government.
The need to continue growing your wealth in retirement is often overlooked. Staying invested for growth is crucial to tackling longevity risk, rising healthcare expenses and inflation.
When you enter retirement, you won’t have the reassurance of a regular income stream from employment so finding investment vehicles that offer a regular payout can help support cashflow.
The liquidity that an investment vehicle can provide is also an important factor in case you need to convert investments into cash to address potential healthcare expenses, for example.
For a smoother investment experience, consider investments with a decent track record to allow you to observe its historical drawdown (decline in value during market downturns). Also the flexibility to shift allocation amongst different asset classes to cope with different points of the market cycle may come handy.
Retirement glide path
Source: Schroders, for illustrative purposes only.
Schroder Flexi Total Return Fund
A solution designed to serve post-retirement needs.