Tuesday, May 17, 2022
News for Retirees

Half of Hong Kong girls face retirement earnings challenges

Just one in three girls say they’re assured of their means to make their pension contributions, whereas 40% of males…

By Staff , in Investments , at May 6, 2022

Just one in three girls say they’re assured of their means to make their pension contributions, whereas 40% of males say the identical, in keeping with the Constancy’s World Girls & Cash Examine 2022.

As a result of insecurity in monetary planning, 46% of the surveyed Hong Kong girls are fearful they’re unprepared financially for retirement, whereas 43% of males felt the identical.

“With the survey findings suggesting {that a} sizeable proportion of girls consider that they don’t have ample earnings to fund 21 years in retirement, it’s much more crucial they plan early and set sensible, achievable targets,” stated Charlotte Chan, head of distribution, Hong Kong office and private investing at Constancy Worldwide.

“Sustaining good financial savings and spending habits, in addition to searching for acceptable monetary recommendation, may also help maximise the worth of their hard-earned earnings and keep on monitor to reaching a cushty retirement.”

Girls in Hong Kong anticipate to retire at 63 after which to depend on HK$22,000 per 30 days on common for 21 years.

Compared, males anticipate to retire two years later, and to fund 20 years in retirement on HK$23,000 per 30 days on common.

The insecurity could also be attributed to the truth that girls are much less energetic of their retirement contributions and planning, stated the funding supervisor.

Financial savings shortfall

The survey discovered that solely 27% of girls make further contributions to their pension usually and 37% of girls say they actively make choices about how their pension ought to be invested.

Prime causes that forestall girls from saving extra into their pensions embody a scarcity of obtainable funds after outgoings (37%), not understanding how greatest to save lots of for retirement (31%), and having different saving priorities, resembling for a home or a automobile (20%), the survey discovered.

When deciding how a lot ought to they want in retirement, over 60% of girls prioritise having the ability to journey, adopted by sustaining private hobbies and having the ability to afford care to remain in their very own house.

Each ladies and men in Hong Kong agreed that it’s most necessary to fulfill the required or desired way of life in retirement, adopted by disposable earnings and what they’ll save for retirement after important payments have been paid.

Market volatility fears

Worrying in regards to the present market volatility, girls are extra possible than males to have decreased the quantity which they saved, invested, or contributed to their pensions during the last 12 months.

Whereas round 26% of males elevated their allocations to their financial savings, investments or pensions, solely round 20% of girls have performed so, in keeping with the survey findings.

Two in three girls buyers stated they’re fearful in regards to the continued pandemic uncertainty (66%), adopted by the long-term well being of the economic system, and market volatility.

“Current market volatility might have weighed on buyers’ confidence, however it’s price noting that volatility is an inevitable and inherent a part of investing. Expertise tells us that among the most fascinating funding alternatives seem throughout down markets,” stated Chan. “Staying focussed on the long run and staying invested all through completely different market cycles may also help buyers clean returns

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