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A recent survey conducted by T. Rowe Price, a global asset manager, reveals that Hong Kong's working adults are concerned about artificial intelligence reshaping their retirement plans. While 55% anticipate AI-driven disruption to their long-term careers and income, only 20% feel financially prepared for this shift.

The survey, which included 1,004 Hong Kong residents aged 30 and above earning at least HK$15,000 (US$2,239) per month, found that financial uncertainty was most pronounced among workers aged 30 to 39, with 61% expecting a challenging path to retirement. Raymond Chan, head of Greater China intermediary distribution at T. Rowe Price, noted that "Retirement is becoming less of a single point in time and more of a journey," as AI could allow some people to work longer or more flexibly, while others may need to reskill, reduce their hours, or reconsider when they retire.

Despite these concerns, financial planning has not kept pace with AI's potential impact on retirement. Only 21% of respondents reported being "fully" or "substantially" prepared financially for any changes in employment, income, or retirement timing. Nearly 60% estimated they would need more than HK$5 million to retire comfortably, with 22% aiming for over HK$10 million. However, only 15% had comprehensive retirement plans that were regularly reviewed.

To mitigate AI risks, 43% of workers have increased their emergency cash funds, while only 28% adjusted their retirement investment portfolios. Wenting Shen, a Global Investment Solutions Strategist and Portfolio Manager at T. Rowe Price, cautioned that "Holding too much of a long-term retirement portfolio in cash can leave purchasing power vulnerable to inflation."

Therefore, she emphasized the importance of having an investment framework that can adapt over time, depending on whether one retires earlier, later, or in stages.