Preparing for retirement
Get set and go fast to plan for and achieve your retirement goals at an early stage of life.Retirement might seem a long way off. But it's important to begin planning for the retirement that you aspire to as soon as you can.
The Covid-19 pandemic raised Hongkongers’ sense of urgency in starting their retirement planning as they grapple with various related woes (see diagram below), according to Schroders Hong Kong Retirement Survey 2024.
Not only that, the risk of outliving your assets and savings – or longevity risk – has become very real around the world, particularly in Hong Kong, where life expectancy is among the world’s highest at 82.5 years and 88.1 years for men and women respectively in 2023.
Common concerns about retirement planning:
Top 5 concerns
Source: Schroders Hong Kong Retirement Survey 2024; Census and Statistics Department, Hong Kong SAR Government.
How can you start building your retirement pot?
Saving over the course of your career is a first step to building your retirement pot. However, that won’t be enough.
To add to your retirement pot, consider the key features of the various investment funds that are available for you. To what extent are they likely to provide capital growth and add to your wealth?
Assess fund performance history and the fund management team’s reputation. These are the top two criteria for members selecting investment funds under the Hong Kong Mandatory Provident Fund (MPF) Scheme, according to Schroders Hong Kong Retirement Survey 2024.
Retirement glide path
Source: Schroders, for illustrative purposes only.
Investing for growth to prepare for retirement
We highlight the considerations for you to get a head start to building your retirement pot.