Hong Kong retirees’ living costs grow 3 times city’s average on more northbound travel

Hong Kong retirees are experiencing living expenses that have grown nearly three times faster than the city's average over the past five years, primarily due to the surge in northbound travel, according to a new study. The Hong Kong-Macau Retirement Expense Index, a joint effort by the Institute of Financial Planners of Hong Kong and YF Life Trustees, recorded a value of 131.6 in 2026, up from 127 in 2023 and 100 in 2020.

This represents an annualized growth rate exceeding 5 percent from November 2020 to May 2026. The index for 2023 and 2020 was based on surveys conducted by the Institute of Financial Planners, excluding Macau.

Travel restrictions imposed during the Covid-19 pandemic were lifted in February 2023, allowing for increased northbound trips between Hong Kong and mainland China. This, along with the relaxation of travel protocols, has led to a significant rise in transport and accommodation expenses for retirees. Paris Yeung, CEO of the Institute of Financial Planners, stated that the frequency of retirement travel and commuting between Hong Kong and mainland China has increased notably since Covid-19, resulting in substantial growth in these areas.

In a survey conducted in June, 304 Hong Kong retirees aged between 55 and 74 were asked about their monthly spending. The retirees had a personal income of at least HK$20,000 (US$2,551) before retirement and were not receiving means-tested social security or charitable support. The findings from 2020 and 2026 showed that the gauge for travel costs surged by over 10 points in the six-year period, the highest among all items. Food, dining, and cross-border transport followed closely behind.

Despite the high cost of living, Hong Kong retirees spent less on housing compared to other expenses, with a gauge value decreasing by 7.9 points. Consequently, the city's retirees' monthly cost of living increased by about 2.65 percent to HK$15,090 in 2026 from HK$14,700 in 2023. In contrast, retirees in Macau reported an average monthly spending of 10,408 patacas (US$1,289) in this year's survey, which was 33 percent lower than in Hong Kong.

The Macau data was based on a separate survey conducted in June involving 100 local retirees aged 55 to 74. While Macau's retirees also preferred northbound travel in recent years, it is not appropriate to compare the two readings due to the differences in cost of living and lifestyle habits between the two cities.

The top two concerns among Hong Kong retirees, as reported by the survey, were unpredictable medical costs, cited by 51 percent of respondents, and the fear of outliving their wealth, mentioned by 41 percent. Lastly, 51 percent of the surveyed retirees expressed worries about running out of savings, highlighting the need for retirees to shift their perspective from viewing retirement savings as a static lump sum to a continuous financial plan.