A survey by global insurer Friends Provident International revealed that a well-off Hongkonger needs an average of HK$9.47 million to retire on, so most of them worried  saving in their MPF account cannot fulfill their needs.

A survey revealed that a well-off Hongkonger needs an average of HK$9.47 million to retire on, so most of them are worried saving in their MPF account cannot fulfill their needs.

MPF, compulsory employees’ pension scheme, is disillusionment, survey said.

Friends Provident International, a global insurer, released a survey to indicate that affluent Hong Kong residents are more daring when investing for their retirement than Singapore peers, an well-off Hong Konger needs an average of HK$9.47 million to retire on while a Singaporean counterpart needs HK$7.95 million.

It found that 79% of 500 HK residents believed that rely on the only one retirement protection of  The Mandatory Provident Fund Scheme (MPF) is not enough for their future use. 26% of Hong Kong respondents are willing to invest in high-risk and high-return products, compared with 11 percent of Singaporeans.

Overall, only 4% of local people think that MPF is enough to meet the retirement need, compared to 14% of Singapore people.

In general, Hong Konger feel that retirement protection in Singapore is more effective than Hong Kong.

Only 4% of the respondents said they could count on the compulsory saving scheme, compared to 14%of Singaporeans. It also reveals that a well-off Hongkonger needs an average of HK$9.47 million to retire on, while a Singaporean counterpart needs HK$7.95 million. That was despite a recent Economist Intelligence Unit report that ranked the city-state as the costliest city in the world and Hong Kong the ninth.

To address the savings gap, 26% of local respondents said they are willing to invest in high-risk and high-return products, compared with 11% of Singaporeans.

James Tan Lai-hing, managing director for Asia at FPI, said local well- heeled individuals should build a balanced portfolio and review their investments regularly. The risks of high-yield products should not be overlooked, he said.

Source: The Standard Finance

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