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Pension shortfalls keep 9 out of 10 middle-income Hong Kong residents toiling
- The vast majority of respondents feared their pension savings would not be enough to see them through old age in comfort
- They also believe the Covid-19 pandemic is likely to increase health care costs in the future, a further blow to their retirement plans
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Nine out of 10 middle-income Hongkongers approaching retirement age have no firm plan to stop working because they fear their pension savings are insufficient, according to a report released on Monday.
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Many also believe the Covid-19 pandemic is likely to increase health care costs in the future, a further blow to their retirement plans.
Almost 90 per cent of the respondents, aged between 50 and 59, had no specific retirement date in mind, while two thirds wanted to continue working as long as possible, according to a survey commissioned by the Hong Kong Retirement Schemes Association, an organisation that promotes pension schemes in the city.
They may have good reason to worry. The city’s retirement scheme, the Mandatory Provident Fund, can on average only provide about 40 per cent of a person’s salary after their retirement, the study showed.
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The study estimated an upper middle-income individual would need to spend HK$18,000 (US$2,323) per month to get by, but the current retirement plan can only provide them with about HK$8,000 to HK$12,000 a month.
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“Many people in Hong Kong don’t plan for their retirement and fail to make a long-term plan,” said Doris Ho, chairman of the Hong Kong Retirement Schemes Association.
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