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.