One in two employees in Hong Kong expect post-retirement work

Changing demographics and rising living costs make it difficult for older adults to contemplate retirement, raising the age profile of the workforce.
By: | July 27, 2023
Topics: Employee Experience | Health and Wellness | Hong Kong | Mobility | News

57% of people in Hong Kong anticipate having to work even after reaching retirement age due to diverse reasons such as family obligations, desired lifestyles, and financial concerns.

Different generations have varying motivations for working after retirement, with Gen Z, Gen Z, and Baby Boomers prioritising personal wellbeing, while millennials emphasise family support. However, a common thread is the belief that they would not have sufficient funds for a comfortable retirement.

According to a study conducted by Manulife Investment Management, younger generations are starting to save for retirement earlier, with Gen Z beginning at 21 and millennials at 28. In contrast, older generations like Gen X and Baby Boomers started at 39 and 44, respectively.

Maintaining a similar standard of living in Hong Kong after retirement is increasingly difficult, given the city’s changing demographics and family structures. Around 50% of those aged 65 and above live with their children, but the declining birth rate and rising living costs are straining financial situations for older adults and undermining the younger generation’s ability to support their parents.

Around 25% of Hong Kong residents cited the need to financially support their families as a key reason for working after retirement. As a result, the older population may be compelled to continue working to cover their needs. Over the last decade, the number of employed older individuals has surged by 136.6%, particularly in the 65 to 74 age group.

READ MORE: Unemployment falls to four-year low in Hong Kong

Gender disparities also play a role, with women globally receiving 26% less pension income than men. Career interruptions due to family responsibilities, coupled with lower labour force participation rates and wages for women in Hong Kong, resulted in reduced retirement wealth, reported Hubbis. However, Manulife’s data showed more women than men utilise digital investment platforms to manage their portfolios, enabling better retirement planning.