Fidelity: Hongkongers Score Just 54 on Retirement Readiness — a Fail

Fidelity’s retirement readiness index, published in June 2011, gave Hong Kong workers an average score of just 54 out of 100 — a fail, signalling widespread under-preparation.

What does 54 mean?

Most people’s retirement savings won’t cover retired life. Scored across savings levels, investment mix, planning and more, the 54 shows that MPF alone leaves Hongkongers far from a secure retirement.

Why so low?

Too little saved, started too late, invested too timidly. Many rely on MPF alone with no extra savings; they start planning too late; they invest too conservatively and miss long-term growth. Longer life expectancies mean the money must stretch further.

How to raise the score?

Start early, save more, allocate right. The earlier you start, the harder compounding works; build savings beyond MPF; match fund risk to your age — the young can afford to be bolder. Compare MPF funds’ fees and track records at MPF fund comparison.