How can Asia’s insurers turn financial anxiety into retirement action?

Many consumers delay retirement planning despite rising longevity risks.

Asian insurers may need to focus less on awareness and more on converting financial concern into action, as consumers across Hong Kong and Singapore remain unprepared for longer retirements and rising living costs despite growing anxiety over their finances.

A survey by FWD Life Insurance Company (Bermuda) Ltd. found that 64% of respondents in Hong Kong and Macau feel stressed, worried or are merely getting by financially, reflecting weak confidence in long-term financial security.

The survey of more than 1,000 respondents identified rising living costs, healthcare expenses, and inadequate retirement savings as the top financial concerns over the next five to 10 years.

“Hong Kong ranked as the world's longest-living region for 10 consecutive years as public health awareness continues to grow,” Ken Lau, Hong Kong CEO and managing director for Greater China at FWD, said in the report.

The findings point to a widening gap between financial awareness and actual retirement preparation, particularly as longer life expectancy increases the risk of outliving savings.

In Singapore, a study by CIMB Bank Berhad found that 78% of residents think financial independence is achievable, but 34.6% worry about their financial future.

High living costs and family responsibilities remain major barriers, whilst fewer than half of respondents have started retirement planning.

“Our study shows that financial independence in Singapore is no longer defined by a single dollar figure, but by freedom from financial stress,” Sharon Ng, deputy dean at Nanyang Business School, said in a separate report.

Hong Kong respondents estimated they would need about $817,000 (HK$6.4m) in retirement savings, but expected these funds to last only until age 82 despite average life expectancy reaching about 86 years, creating a potential four-year retirement funding gap.

The disconnect between planning and execution appears strongest amongst younger consumers. Gen Z respondents in Hong Kong expected to retire earliest and projected the highest retirement savings needs, yet only 16% said they were actively taking steps to secure their financial future.

Across all respondents, 43% had not consulted a financial adviser, whilst 30% don’t contribute regularly to retirement funds.

Kelvin Yu, chief proposition and healthcare officer at FWD Hong Kong & Macau, said rising healthcare costs are also increasing pressure on financial planning as medical treatments become more advanced and personalised.

The FWD survey found that 64% of respondents in Hong Kong’s “sandwich generation” were unaware that insurance products covering multiple family members already exist, suggesting insurers may also be facing a distribution and communication gap rather than only a product gap.

Questions to ponder: