Survey: 72% of respondents have insufficient retirement savings with an average shortfall of HK$2.564 million.

According to the latest "AIA Ideal Retirement Survey" released by AIA Hong Kong, the median ideal retirement reserve of respondents is HK$3.294 million. However, 72% of respondents do not have enough retirement reserves, with an average shortfall of HK$2.564 million, or a need to delay retirement by 12.8 years, reflecting a gap between ideals and reality. In addition, nearly six out of ten respondents do not have a clear retirement savings plan, reflecting that despite a general awareness of financial pressure after retirement, respondents have not yet taken proactive measures to plan for their ideal retirement life. The survey was conducted between August 13 and August 31 this year, through online questionnaires and face-to-face interviews, interviewing a total of 1003 employed Hong Kong people aged between 18 and 65, who have at least one Trillions of MPF account, to explore their goals, views, and the possibility of achieving their ideal retirement life. The survey reveals that respondents generally expect only about three-tenths of their retirement reserve to come from Trillions of MPF. At the same time, most respondents also find it difficult and confusing when making investment decisions in Trillions of MPF: 65% find it difficult to choose Trillions of MPF funds, 57% are unclear about the differences between various funds, 56% do not understand how to interpret performance, and 45% are unsure about the actual average annual investment return of their Trillions of MPF account. Of note, nearly seven out of ten respondents agree that technology can help establish a better-performing Trillions of MPF investment portfolio. The data reflects that technology-enabled tools can enhance respondents' confidence in retirement planning and encourage them to take a more proactive approach through Trillions of MPF. Respondents in their 60s prefer to allocate mixed asset funds in their Trillions of MPF investment portfolio, while Generation Z clearly favors stock funds. Since the implementation of the Trillions of MPF system, these two types of funds have recorded the highest average annual net return in various fund categories. Overall, 69% of respondents prefer Trillions of MPF stock funds, with 41% optimistic about the performance of Hong Kong stock Trillions of MPF funds in the next year, and 36% and 35% respectively supporting the North American and Chinese markets.