Hong Kong workers fear AI-driven disruption to retirement but only 20% feel prepared: survey

Over half of Hong Kong's working adults anticipate artificial intelligence will complicate their retirement plans compared to previous generations, according to a survey by T. Rowe Price. However, only one in five believe they are financially prepared for this shift.

The survey of 1,004 residents aged 30 and above, who earn at least HK$15,000 (US$2,239) monthly, found that 55% expect AI-driven disruption to destabilize their career and income trajectory. Uncertainty was greatest among workers aged 30 to 39, with 61% expecting a more challenging path to retirement.

T. Rowe Price's Raymond Chan explained that retirement is evolving from a single point in time to a journey shaped by AI. The technology could enable some to work longer or more flexibly, while prompting others to retrain, cut hours, or reconsider retirement timing.

Despite widespread concern, financial readiness remains low. Only 21% of respondents said they were "fully" or "substantially" prepared financially if AI alters their employment, income, or retirement timing. While 59% estimated needing over HK$5 million for a secure retirement, with 22% aiming for at least HK$10 million, just 15% had a regularly reviewed comprehensive retirement plan.

Most financial planning focused on short-term buffers rather than long-term growth. To mitigate AI risks, 43% of workers increased their emergency cash reserves, while only 28% adjusted their retirement investment portfolios. Financial strategist Wenting Shen noted that excessive long-term retirement investments in cash can leave purchasing power vulnerable to inflation. As retirement timing may vary, Shen emphasized the need for adaptable investment frameworks over time.