81% of Hongkongers prioritise family over retirement savings

Half of those assisting elderly family members view it as a financial burden.

Hongkongers struggle in balancing family financial obligations with personal retirement planning, with 81% prioritising family needs over their own, according to a Manulife survey.

Amongst respondents, 57% provide financial support for their parents, slightly surpassing the 55% who support their children. Manulife noted that half of those assisting elderly family members view this as a financial burden, driving a need for improved financial balance through investments.

Despite these pressures, 4 in 10 individuals with responsibilities for elderly family members do not discuss their financial obligations, with only a small fraction seeking professional advice.

Overall, 69% of Hongkongers reported managing their retirement finances independently, often without expert guidance. Respondents cited a lack of confidence that financial planners understand their needs, revealing a disconnect between potential support and actual usage.

Calvin Chiu, Manulife Investment Management’s head of Asia Retirement, emphasised the importance of individuals prioritising their financial health alongside family obligations. He suggested resources like mutual funds, regular savings plans, and voluntary contributions to the Mandatory Provident Fund as options for maintaining financial stability.

The survey also revealed a strong preference for cash holdings amongst Hongkongers, especially singles and married individuals without children, who hold 54% and 49% of their portfolios in cash or fixed deposits, respectively. 

In contrast, those with children shift towards diversification, with married individuals allocating 42% and singles with kids 33% to cash. Chiu advised that individuals should reassess and adjust their portfolios to preserve income levels amidst decreasing interest rates.