Hong Kong is facing a significant shift in retirement expectations and challenges. Sun Life Hong Kong has joined forces with the Hong Kong Mortgage Corporation Limited to introduce valuable programs. Their Policy Mortgage Programme and Reverse Mortgage Programme are designed to offer flexible retirement planning options. These initiatives allow retirees to transform life insurance policies or residential properties into regular monthly payments, thereby creating a stable income source to enhance their retirement quality of life.
Recent data has shed light on the evolving retirement landscape. As per Sun Life’s July report, Hong Kong workers now anticipate retiring at an average age of 66, a full five years later than the current norm of 61. Economic conditions and personal situations have led 12% of non-retirees and 9% of retirees to postpone their retirement plans. Moreover, a large number of retirees are experiencing financial stress. Over half, 57%, cite increasing living costs, and 43% mention higher healthcare expenses as reasons for overspending. This has led to 71% of retirees cutting back on their expenditures and 57% forgoing certain medical treatments, highlighting major deficiencies in existing retirement planning.
The problem is further exacerbated by Hong Kong’s ageing population. Government statistics indicate that in 2021, 20% of the population was 65 or older, and this proportion is forecasted to soar to one in three by 2046. With such a rapid demographic change, the need for effective retirement solutions like those offered by the partnership between Sun Life and HKMC becomes even more crucial in ensuring the financial well-being and security of Hong Kong’s retirees.
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