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Gen Z Could Be the First Generation to Live to 100 — Are You Financially Ready?

 

10-min read

Updated on 2026-6-23

Author: AIA Content Editorial Team

Gen Z professionals preparing for future financial planning and sustainable long-term income
When life gets longer, is your plan still about how much you can save each month?
 
For many Gen Z individuals, financial planning often focuses solely on whether they can save money and cope with their current living expenses.
 
However, living in Hong Kong, one of the regions with the highest life expectancy in the world1. With ongoing advancements in medical technology, public health, and overall living standards, life expectancy continues to rise, a 100-year life is becoming the new normal2.
 
As your lifespan may extend to 90 or even 100 years, this means you may spend a much longer part of your life without a steady income, potentially extending the period of retirement or time without fixed income, making overall financial planning more challenging.
 
As a result, financial planning is no longer just about whether you can save. It is about how to make effective use of your existing resources to build a financial foundation that can support your entire life.

The realities Gen Z faces: Shifts in Employment Patterns and increasing family financial responsibilities

Shift in Employment Patterns and Rising Cost of Living Amplify Financial Pressure

In recent years, rapid advancements in artificial intelligence (AI) have been reshaping industries and fundamentally transforming business operations. A study by McKinsey indicates that as many as 32% of companies expect AI to reduce their workforce in the near term3. Meanwhile, Oliver Wyman's global CEO survey shows that the proportion of companies planning to reduce entry-level roles has risen significantly from 17% to 43% within just one year4. This reflects a structural shift in workforce composition, with organisations increasingly moving away from entry-level roles toward mid- and senior-level talent.
 
AI is also reshaping the nature of work itself—for example, up to 30% of working hours could be automated, and lower-wage workers are up to 14 times more likely than higher-wage workers to need to change occupations5. Together, these trends point to a continued decline in job stability and growing uncertainty in future income prospects.
 
At the same time, rising living costs in Hong Kong are further increasing financial pressure. According to the Census and Statistics Department, Hong Kong's Consumer Price Index (CPI) rose by approximately 1.7% year-on-year in 20266, with essential expenses such as electricity, gas and water recording increases up to 5.5%6, reflecting growing pressure in everyday living expenses.
 
Overall, under the dual pressures of shifting employment patterns (income uncertainty) and a rising cost of living (increased expenditure), individuals may still face risks of insufficient funds or concentrated financial stress if they lack long-term financial planning—even if their current income remains stable.

Increasing family financial responsibilities: From individual planning to multi-generational arrangements

Beyond income uncertainty, increasing family financial responsibilities have also emerged as an unavoidable, long-term challenge for Gen Z.
 
Hong Kong is rapidly entering a "super-aged society", with data indicating that:
  • The population aged 65 or above already accounts for over 24% in 20257 and continues to rise.
  • The elderly dependency ratio continues to increase, reaching 382 older dependents for every 1,000 working-age individuals in 20258
These figures reflect that the younger generation will need to shoulder heavier intergenerational financial responsibilities. 
 
Consequently, future financial planning for Gen Z has expanded from "personal wealth management" to "family financial planning", mainly covering:
  • Supporting parents' medical and living expenses: longer lifespans mean extended caregiving periods and higher medical expenditures.
  • Preparing for children's education and upbringing: Education costs may continue to rise due to various factors, potentially reaching up to HKD 6 million9.
How to balance personal development, parental support, and planning for children—while building a sustainable asset base—has become a core subject of Gen Z's financial planning.

The key to financial planning: building sustainable assets

In a world where people are living longer, financial planning is no longer just about saving. It is about building assets that can support your needs over the long term. This includes:
  • Long-term asset accumulation
  • Basic protection for you and your family
  • Future cash flow planning
There are solutions in the market designed to provide you with a stable returns and income stream, such as deferred annuity plans. These plans allow you to accumulate wealth progressively from an early stage and convert it into a steady income stream upon retirement for a specified period. You can also choose the Annuity Payment Start Age to suit your individual needs, offering flexibility to align with your retirement planning.
 
In addition, qualifying deferred annuity policies are eligible for tax deductions. The annual tax deduction amount per taxpayer for the premiums paid is up to HK$60,00010, helping you ease your current and future financial burden while building up your retirement reserves.

Plan early and leverage time and resource advantages

Starting financial planning early not only improves long-term asset accumulation but also allows you to take advantage of opportunities over time and avoid excessive financial pressure in the future.
 
Start your financial planning for longevity today.
*This information is for general reference only and does not constitute sales advice, product recommendations, or service offers. Before purchasing an insurance product, customers must complete a financial needs analysis. AIA does not guarantee the accuracy and completeness of the content and information provided. AIA reserves the right to pursue legal action and seek compensation for any infringement and/or legal issues.
 
This document was designed and developed by AIA from data or information gathered from internal or external sources. This document is for information and reference purpose only, and should not be considered as a recommendation, an offer or solicitation for any of the insurance products mentioned herein. While we have endeavoured to ensure the content of the document is accurate, comprehensive and timeliness at the time of preparation and/or updating of the document, however, we do not guarantee nor warrant the accuracy, completeness and timeliness of the data source. Thus, we are not liable for any claim and/or loss arising from the data source. Any opinion or information contained in the document is made on a general basis and should not be relied upon by the readers as advice. AIA reserves the right to make changes and amendments to its opinions expressed and information contained in the document at any time, without any prior notice. You are advised to seek independent advice from appropriate professionals (such as, licensed investment advisor/financial consultants, etc.) before making any decision on the topic(s) mentioned in the document. AIA expressly disclaims all liability for the use or interpretation by others of information contained in this document.

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1. Centre for Health Protection, Department of Health, Hong Kong SAR Government. Life expectancy at birth, 1971–2024. https://www.chp.gov.hk/en/statistics/data/10/27/111.html
2. World Economic Forum. (2026). Asia is entering the longevity era. How can we rethink wealth in a 100-year life? https://www.weforum.org/stories/2026/01/asia-entering-longevity-era-how-rethink-wealth-100-year-life/
3. McKinsey & Company. (2025). The state of AI: Workforce impacts and adoption trends. https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai
4. Oliver Wyman Forum. (2026). CEO agenda survey. https://www.businesswire.com/news/home/20260407092232/en
5. McKinsey Global Institute. (2023). Generative AI and the future of work in America. https://www.mckinsey.com/mgi/our-research/generative-ai-and-the-future-of-work-in-america
6. Census and Statistics Department, Hong Kong SAR Government. (2026). Consumer Price Index Monthly Report – April 2026 https://www.censtatd.gov.hk/tc/EIndexbySubject.html?pcode=B1060001&scode=270
7. Census and Statistics Department, Hong Kong SAR Government. (2025). Table 110‑01001: Population by sex and age group. https://www.censtatd.gov.hk/tc/web_table.html?id=110-01001
8. Census and Statistics Department, Hong Kong SAR Government. (2025). Table 110‑01004: Dependency ratio and median age. https://www.censtatd.gov.hk/tc/web_table.html?id=110-01004
9. HK01. (2025). 《香婦聯調查：七成港人不願生育　經濟壓力住屋迫為主因　晚育成趨勢》https://www.hk01.com/article/60216348
10. HK$60,000 is the maximum tax deductions per taxpayer per year for qualifying annuity premiums and MPF tax deductible voluntary contributions. For details on tax deductions, please visit the website of Inland Revenue Department (IRD) of HKSAR or contact IRD for tax related enquiries. You can also consult your tax and accounting advisors for tax advice.

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