Hong Kong women urged to invest sooner, not just save, with retirement costs expected to reach nearly 70% of their income

Women in Hong Kong are being encouraged to start investing early to avoid financial difficulties after retirement. Hong Kong Fidelity International head Charlotte Chan advised women to take a more active approach to investing alongside increasing their savings.

“The sooner women start their investing journey, the better off they will be in achieving long-term capital accumulation,” Ms Chan said.

Her advice comes amid concerns that nearly half of working women in Hong Kong worry about not having enough income after retirement, according to data from the largest managers of the Mandatory Provident Fund (MPF), the city’s compulsory retirement scheme, as reported by South China Morning Post (SCMP).

In light of International Women’s Day, Fidelity International’s Asia-Pacific Investor Study revealed that women in Hong Kong generally retire at 62 and expect to spend about HK$24,235 (S$4,149.88) per month in retirement — roughly 70 per cent of their current monthly income.

The study surveyed 1,002 respondents in Hong Kong aged 18 to 69 with a minimum monthly income of HK$15,000 (S$2,568.53), highlighting the need for better retirement planning as inflation rises and life expectancy increases.

For most women surveyed, a stable monthly income was their top priority when planning retirement investments.

Faced with a possible financial shortfall after retirement, 42 per cent said they would either cut expenses, increase their savings through continued investments, or work part-time after retirement.

The study also found that Hong Kong women are more active in long-term investments than their peers in the Asia-Pacific region, with 43 per cent holding their investments for at least five years before selling or redeeming funds — the highest number of women adopting a long-term investment approach.

However, the report found that women tend to focus more on savings than investing or contributing more to their pensions.

Women in Hong Kong were found to be more cautious in their investment approach due to market volatility and a lack of confidence in making investment decisions. Meanwhile, men were generally more willing to take risks for potentially higher returns.

For Hong Kong women, cash savings, term deposits, and stocks were the most popular investment choices.

Ms Chan advised that “having a diversified portfolio that aligns personal risk appetite and financial goals, and investing throughout market cycles can help to capture the upwards path most markets show over the long-term”./TISG

Read also: ‘You just have to count on yourself’: Is this also true for Singaporeans who rely on the traditional retirement model of CPF, personal savings and gratuity?

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