AIA reveals result of 14th Desired Retirement Tracker survey
Over 1 in 2 plan to dip into their savings for ‘revenge travel’
AIA Hong Kong has released the results of its 14th Desired Retirement Tracker which analysed Hong Kong workers' changing attitudes towards retirement preparations amidst the resumption of normal activities and revealed their views according to the four primary aspects of retirement.
Retirement savings, retirement investments, medical protection, and physical and mental well-being are the four essential components of an ideal retirement life. However, many Hong Kong workers experienced disruptions to their retirement planning due to COVID-19.
Under retirement savings, 47% of respondents have increased their personal savings over the past three years. Of these, 41% have achieved extra savings of more than HK$40k.
However, due to an overwhelming desire to travel as Hong Kongers take back their social lives, 58% plan to use their savings for ‘revenge’ travel whilst 46% plan to travel in the next three to six months with an estimated budget of HK$22k.
Amongst respondents who have been infected with COVID-19, 80% agree life is fragile and that they should enhance their medical protection. However, only 17% have purchased additional medical insurance since having the virus.
Among all respondents, 22% do not have any medical insurance and 13% have group medical insurance only, meaning 35% may lack medical protection after retirement.
Meanwhile, 58% of respondents prefer a hybrid working mode and hope to work from home an average of 2.8 days per week. However, 76% think that work-from-home arrangements cause the boundary between work and personal life to blur.
Finally, 78% of respondents would like to have sustainable investment elements in their retirement investment portfolios, whilst 80% admit that they do not know how to choose ESG MPF products.
"We are pleased to see the community return to a more normal way of life. But while it is understandable that people are looking forward to increasing their spending on travel and social activities in a post-pandemic world, it is still crucial to strike a balance between spending, saving and building healthy financial habits,” Elaine Lau, Chief Corporate Solutions Officer of AIA Hong Kong and Macau said.