Hong Kong people neglect their medical needs after retirement
Medical costs are necessary part of retirement expenses, yet the Survey revealed that 29% of respondents have not budgeted or have no idea how much to budget for their medical expenditure after retirement. Of respondents who claimed they had taken medical costs into account (71%), their expected post-retirement monthly medical expenditure is HK$1,590 (median); 40% have not reserved funds for unexpected medical emergencies (such as cancer, stroke, heart disease, etc.) in their retirement reserves, while 23% said they had no idea how to budget for their unexpected medical needs.
Ms. Elaine Lau, Chief Corporate Solutions Officer for AIA Hong Kong and Macau, remarked, “Hong Kong people are living longer. To avoid starting their new chapter in life with pseudo-retirement, they should adhere to a few key principles: Start retirement planning as early as possible and avoid relying on a single investment tool or being too aggressive or conservative. Be proactive about managing MPF investments and make voluntary contributions where possible. Last, but not least, never neglect medical needs after retirement. Employees can consider topping up their existing group medical insurance with portable medical protection2 for more comprehensive cover and lifelong security. These rules of thumb are essential to ensuring a sound financial plan which will pave the way for an enjoyable retirement life.”
Ms. Lau, added, “The Survey reveals two serious issues: namely, that Hong Kong people lack retirement reserves and neglect medical needs after retirement. If left unresolved, these issues can harm the quality of their retirement lives. A trusted partner for MPF and group insurance, we are one of the few financial institutions offering one-stop pension, group insurance and employee voluntary solutions. We meet the needs of both employers and employees by providing a full range of MPF and group insurance products and services with Value, Choice and Simplicity. By enabling our customers to easily plan for their retirement and medical needs, these offerings allow us to help people live healthier, longer, better lives.”
The Survey was conducted via online questionnaires and face-to-face interviews from 8 to 19 November 2018 to examine the goals and views of Hong Kong’s working population regarding their desired retirement as well as the possibility of achieving their retirement goals. The 1,001 respondents from the city’s working population were between the ages of 18 and 65, and possessed at least one MPF account. To ensure the Survey was representative, survey data and responses were weighted against the demographics of Hong Kong’s working population, including age, gender and monthly personal income. The Survey was conducted by Cimigo, an independent market research company.