Are Hongkongers Ready for Retirement?

What did Fidelity’s 2011 index show?

Fidelity Hong Kong MD KP Luk wrote that the 2010 retirement index was 54%, up from 43% in 2008, but below the 67% Fidelity recommended for a comfortable retirement; spending power in retirement could plunge, so preparations fell short. Gains came from the post-2009 market rebound, earlier saving and awareness of the need to save more. Most worrying: workers 55-plus scored lowest at about 34%.

Why “say one thing, do another”?

Respondents knew to save earlier and more, and saw a ~HK$1 million gap to actual needs; yet they wanted early retirement and long life while expecting to save only HK$2 million or less to last 20–24 years; savings went to travel and hobbies, not retirement. Nearly half had never heard of semi-portability; 85% said switching incentives mattered most when changing providers — patchy MPF knowledge indeed.

How to raise your index?

Know your target number, save effectively and invest early, mind your personal gap. First step: check whether your funds pull their weight at MPF fund comparison.