AIA Hong Kong announced the results of its "15th AIA Desired Retirement Tracker" (the survey) today, which examined the attitudes of working people in Hong Kong towards employment or retirement in other cities1 in the Greater Bay Area (GBA) as well as their understanding of medical protection cover in the GBA region. Key findings were as follows:
Half are open of being stationed in GBA cities
The survey revealed that 50% of respondents are open to employment in the GBA, including a notable 66% among younger respondents (18 to 29 years old). The most needed support from employers are dormitory/ housing allowance (77%), medical protection covering the whole GBA (71%) and transportation allowance (66%).
However, they did express concerns about working in other GBA cities. The three main issues include being "unclear about local healthcare policies" (73%), having "inadequate understanding of local social welfare policies" (68%) and being "not familiar with local tax policies" (62%).
Nearly 40% express interest in retiring in the GBA, but almost two thirds have insufficient savings
The survey also explored the attitudes of Hong Kong people towards retiring in other GBA cities. 38% of respondents expressed an interest in retiring in other GBA cities, with their top three preferred destinations being Zhuhai (34%), Shenzhen (31%) and Guangzhou (29%). The three main reasons for being interested in retiring in the GBA include a lower cost of living (80%), lower property prices (58%) and better neighbourhood environments (54%).
Among these respondents, a significant 85% said they are confident that their retirement reserves would be able to support their desired retirement lifestyles in their selected cities. However, the survey also revealed that 63% of these respondents are unlikely to have enough retirement reserves to cover their desired retirement living expenditures, with a shortfall of HKD1.97 million (median).
Nearly 90% recognise the importance of having medical insurance covering the GBA
Being able to face any health condition with peace of mind is crucial for everyone, regardless of their geographical location. The survey revealed that nearly 90% of respondents who are interested in retiring or working in other GBA cities agree that owning medical protection covering the entire GBA is very important (87%).
However, despite recognising the importance of medical insurance, many respondents have not taken concrete actions. The survey revealed that among the respondents interested in retiring in other GBA cities, 12% do not own any medical insurance and 13% only have group medical insurance. In other words, it may be expected that a quarter of respondents (25%) will lack medical protection after retirement.
Ms Amelie Shen, Chief Corporate Solutions Officer of AIA Hong Kong and Macau, remarked, "Our latest survey shows that Hong Kong working adults have an open attitude towards working or retiring in other GBA cities. However, it also reveals that they are not well prepared in terms of retirement savings or medical protection, which is concerning. Regardless of where one lives, it is vitally important to have adequate retirement savings and robust medical protection to ensure that people can meet their key expenses and live Healthier, Longer, Better Lives.
"Both employers and employees should take up their complementary roles," Ms Shen further suggested. "If employers deploy staff to work in other GBA cities, they should still arrange for them to participate in the MPF scheme in accordance with the MPF legislation2, and review whether their group medical insurance covers the relevant GBA cities. This would help their employees work with greater peace of mind, bringing higher efficiency. At the same time, employees can proactively make good use of various financial and medical products to meet their needs, some of which even provide tax deductions. With better planning, employees can establish a robust safety net for retirement and medical protection while enjoying applicable tax benefits."
The 15th AIA Desired Retirement Tracker was conducted between 13 November and 27 November 2023 through online questionnaires and face-to-face interviews. A total of 1,085 working people in Hong Kong aged 18 to 65 and with at least one MPF account were interviewed regarding their goals and views on their desired retirement life and the possibility of achieving it. Survey data was weighted according to the distribution of Hong Kong's working population (including factors such as age, gender and monthly personal income) to ensure that the sample fully reflected the characteristics of Hong Kong's working population. The survey was conducted by Cimigo, an independent market research and consultancy agency.
