Even the rich in Hong Kong expect to work past retirement age, survey says

A recent survey by Manulife revealed that a significant portion of Hong Kong's wealthy population expects to continue working beyond traditional retirement age. Out of 1,000 high-net-worth individuals surveyed, 58% anticipated working past retirement, with 32% planning to work for five to ten years past it, and another 26% hoping to work as long as possible. Hong Kong, unlike many other countries, does not have an official retirement age, although many companies require employees to retire at 60 or 65.

Wilton Kee Wing-tao, CEO of Manulife Hong Kong and Macau, explained that Hong Kong's affluent are moving away from the notion of a single, fixed retirement. Instead, they are preparing for multiphase lives that intertwine work, family responsibilities, and personal aspirations.

Among the 11 Asia-Pacific markets surveyed, Hong Kong had the highest percentage of wealthy individuals expecting to work five to ten years beyond retirement age. This figure was lower in mainland China (27%) and Singapore (32%) but higher than in Japan (37%). As people's retirement expectations evolve, they are also adjusting their investment strategies. Two-thirds of respondents stated they were redesigning their portfolios to support a more flexible lifestyle, rather than adhering to a fixed retirement date.

The survey, conducted in April and May, aimed to understand how this demographic navigates the complexities of maintaining wealth across generations. Among the 11 markets surveyed, Hong Kong's wealthy families were the most pessimistic about the next generation's ability to manage family wealth, with 41% lacking confidence in their offspring. Additionally, more than half of Hong Kong respondents had not yet involved their future heirs in wealth planning discussions.

According to official data, 22% of Hong Kong's 7.5 million residents in 2024 were 65 and above, and projections suggest this age group will comprise 31% of the population by 2036. Those planning to retire at a fixed age need to accumulate a substantial lump sum by retirement. For instance, a woman retiring at 65 and living to 90 would require HK$5.4 million (US$688,000), while a man with the same retirement age and lifespan would need at least HK$4.6 million (US$587,000).