Ms
Connie
Lau
Yin-hing,
SBS,
JP,
Chairman
of
HKDPB
(left)
and
Dr
Victor
Zheng
Wan-tai,
Associate
Director
(Executive),
Hong
Kong
Institute
of
Asia-Pacific
Studies,
CUHK
(right)
announce
the
findings
of
the
“Hongkongers’
Sense
of
Security
on
Savings
2024”
survey.
Close
to
20%
of
respondents
with
a
saving
habits
have
set
a
yearly
savings
target
of
HK$307,000
on
average,
the
highest
amount
since
the
inception
of
the
survey,
representing
a
dramatic
increase
of
68%
from
last
year.
Among
those
who
have
a
saving
target,
two-thirds
are
confident
in
meeting
their
targets,
while
40%
of
respondents
indicated
that
their
savings
were
intended
for
“unexpected
needs”
(39%),
followed
by
“preparing
for
retirement”
(26%).
According to the survey results, Hongkonger’s “sense of security” on savings is similar to last year, where the “sense of security” provided by their current savings is standing at 53.5 marks. Close to 75% of respondents rated their “sense of security” on savings at 50 marks or above, similar to last year, with 17% of respondents rated 80 marks or above, an increase of 3 percentage points from the previous year. The survey also shows that, to maintain the current living standard for one year, Hongkongers generally need an average of HK$1.03 million to gain sufficient “sense of security”, a slight fall of around 5% compared to last year.
Significant increase in savings among pre-retirees
Pursuing the study results in 2019, this year’s survey once again conducted an in-depth poll to analyse changes in savings habits among pre-retirees (working individuals aged 50 to 65). The results for this year show that the proportion of pre-retirees with saving habits has risen to over 80% a notable increase of about 10 percentage points from 2019. The average monthly savings of pre-retirees of this year is HK$9,600, a slight drop of 3 percentage points from HK$9,900 in 2019. Pre-retirees perceive they need an average of HK$5.45 million in savings to gain a sufficient “sense of security” for retirement. Among the respondents, the most common way to save for retirement is through bank savings (57%), followed by investing in financial products (30%). However, with the persistent increase in living costs and in case of insufficient savings, interviewed pre-retirees indicated they would likely to have “part-time work” (34%), “reduce expenses” (17%), and “delay retirement” (17%) to maintain a stable living.
The survey also reveals that pre-retirees planned to retire at an average age of 64, and good health (79%), sufficient savings (43%) and a stable residence (28%) are the top three contributors to their “sense of security” for retirement.
Hongkongers step up their saving efforts
Ms Connie Lau Yin-hing, SBS, JP, Chairman of HKDPB, said, “This year’s survey was conducted in an environment where global interest rates remain relatively high, and Hongkongers prefer bank deposits as their primary saving method. At the same time, we are pleased to see an overall increase in both the ‘average monthly saving amount’ and the ‘yearly saving target amount’ among the general public, particularly as the average yearly saving target amount has exceeded HK$300,000, reflecting a remarkable surge of 68% compared to that of last year. This demonstrates a heightened awareness among Hongkongers of the importance of setting money aside for a rainy day.”
Ms
Lau
added,
“Hong
Kong
is
facing
an
aging
population,
and
Hongkongers
are
experiencing
greater
longevity.
Many
Hongkongers
are
expressing
the
need
to
save
for
retirement,
and
are
making
plans
for
the
next
chapter
of
their
lives.
This
year’s
survey
has
once
again
focused
on
pre-retirees
and
found
that
among
working
respondents
aged
50
to
65,
the
proportion
of
those
with
plans
for
the
future
has
significantly
increased.
The
number
of
respondents
with
saving
habits
has
also
risen
by
about
10
percentage
points
since
2019,
which
is
very
encouraging.
We
are
delighted
with
the
result
and
will
continue
to
promote
the
importance
of
saving
and
financial
education
to
the
general
public
through
extensive
outreach
and
community
education
efforts.
The
Deposit
Protection
Scheme
will
continue
to
provide
statutory
protection
for
everyone’s
bank
deposits,
and
contribute
to
maintaining
the
stability
of
Hong
Kong’s
banking
system
and
enhance
public
confidence
in
it.”
Other
highlights
of
the
survey
results:
- 34% of respondents aged 18 to 29 have set a saving target for the year, which is the highest among all age groups, indicating that young people are committed to saving.
- Respondents aged 30 to 39 top the list with nearly 87% have saving habits, the highest among all age groups. They save HK$12,600 on average per month, 30% higher than the general public. With 55.5 marks for the “sense of security” on savings, they rank second among all age groups.
- 78% of respondents aged 40 to 49 are regular savers, rank second among all age groups. Meanwhile, they perceive a savings of HK$1.39 million is required for a sufficient “sense of security”, which topped all age groups. It is believed that the people in this age group have relatively heavier family burdens, and thus requiring more savings for peace of mind.
From 23 August to 7 October 2024, the Hong Kong Institute of Asia-Pacific Studies (HKIAPS) randomly selected and polled a total of 1,001 Hongkongers aged 18 or above across the city by telephone and then carried out a more in-depth survey with a total of 323 pre-retirees.
Hashtag: #HKDPB
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