The results of the “Principal Hong Kong Retirement Health Index” show that a happy and healthy retirement life is driven more by financial literacy – not just wealth Taiwan News

HONG KONG SAR – Media OutReach – November 30, 2021 – The “Principal Hong Kong Retirement Health Index 2021” survey1 (Principal HK RHI) shows that the willingness of Hong Kong residents to retire is strongly correlated with financial literacy, but not only with wealth. According to Principal HK RHI1, financial literacy can determine how a person plans funding directly and subsequently to some extent impact health, social issues, and activities that are key areas of a healthy and happy retirement life.

[Left to Right]

Crystal Chan, Senior Investment Specialist, Principal Asset Management (Asia)

Derek Ching, Chief Executive Officer, Principal Investment & Retirement Services Limited

Zoe Hu, Associate Director, Intuit Research Consultants

Financial situation and attitudes, health, social affairs and activities are the most important building blocks of Principal HK RHI. The total score of RHI is 562. Respondents with higher financial competence are on average 9 points higher than those surveyed with lower financial competence. Interestingly, people have confidence in financial literacy and not only cling to finances, but are more striving for a more balanced life in the other three key areas.

65% said they had little or no knowledge of financial literacy – even in the highest income bracket (HKD 100,000+ per month). When asked about the expected return, these financially less informed respondents have a less realistic estimate, 10% annual return compared to 7% for those who are financially better educated. As the financial center of Asia, access to financial product offerings in Hong Kong is considered plentiful. However, if we want to holistically convert our assets into retirement provision, the adequacy and accessibility of financial literacy is another focus.

Surprisingly, 72% do not have a clear idea of ​​how MPF savings should be used in retirement. And 51% claim that both non-MPF and MPF savings would be a means of making a living after retirement. Their inactive attitude and behavior, reflecting the reality of retirement unpreparedness, is contrary to their perception – 49% think their finances are prepared or fully prepared for retirement.

Mr. Derek Ching, CEO of Principal Investment & Retirement Services Limited, said, “This survey clearly shows that there is a huge gap between our perception and reality, possibly the lack of financial literacy, for the long-term sustainable financial well-being of our clients.”

Financially satisfied is not only applicable for building up wealth before retirement, but is just as important for further investments through accumulation after retirement. Derek added, “There are some products and solutions with monthly payout capabilities that can provide passive streams of income and this would help protect people’s lifestyles and help them maintain the flexibility to reallocate money when needed.”

With RHI, our goal is to regularly monitor the retirement situation in Hong Kong and provide insights to our clients that will help them feel more secure by seeing a broader picture and better managing financial well-being both before and after retirement .

1The Principal Hong Kong Retirement Health Index 2021 survey was conducted by Intuit Research Consultants Limited. 1000 Hong Kong consumers aged 35 to 60 who know the financial situation of their entire household were surveyed through quantitative online surveys (September 1 – September 8, 2021) using access panels.

2Hong Kong scores 56 out of 100 points in the RHI, while the average score for each of the categories is 63 for financial situation and attitudes, 53 for health, 49 for social affairs and 53 for activities.

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About principal

In Hong Kong we are a provider of investment and retirement solutions. Our member firms, including Principal Trust Company (Asia) Limited, Principal Investment & Retirement Services Limited, and Principal Asset Management Company (Asia) Limited, combine our global investment management, retirement and asset allocation skills to provide retirement and asset management services as well award-winning mutual funds and investment products for companies, individuals and institutional investors. All of the above companies are member companies of the Principal Financial Group.


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