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Survey: For
Healthy Life in Old Age, Fixed Income is 'A Must'
By Alfons Chan, China Daily (HK Edition)
Hong Kong, China
August 3, 2005
Eighty per cent people in Hong Kong believe a fixed monthly income after retirement is essential and investment in pension schemes is a viable option, says a new survey.
The survey, conducted by a local insurance firm, showed that the desired average age for retirement was 58.5 and more than 40 per cent of the interviewees expected to live another 20 to 30 years.
But 35 per cent of the people believe that their investments and savings are insufficient to cover their post-retirement expenses.
The mean value of the perceived amount considered adequate enough for covering these expenses is estimated to be as high as HK$2 million.
The mean monthly expenditure after superannuation is HK$7,262, with medical expenses being the highest, followed by travel or recreational activities other than basic living costs.
Principal Insurance Company (Hong Kong)'s Sales and Distribution Director Carmen Wong said: "Our survey results suggest that annuity products are popular with retirees, with a concept similar to government pensions, which used to pay out lifetime monthly income to civil service retirees."
A majority of the respondents preferred life annuity products that provide a lifetime of monthly income, with 67 per cent choosing joint life annuity that offers the same benefits to the beneficiary's spouse.
According to the survey, less than 45 per cent of the married respondents have arranged for financial protection for their spouses.
"Retirement has become a new life filled with challenges for many people. It is difficult to predict what will happen after retirement, and investment for long-term financial security is vital," Wong added.
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