People in Hong Kong generally overlook planning for their financial future. An independent survey by BCT Group ("BCT") found that respondents were looking forward to their future. 76% of them anticipated being financially independent in retirement, where they would lead a fruitful life and stay socially connected. However, there is a large discrepancy between what they expected and how they actually prepared for it, reflecting that many people lack adequate financial planning and actions to meet their actual financial needs in the future.
In May, BCT commissioned an independent research institution to conduct a survey of 600 MPF account holders on "Hongkongers' expectations for future life and their financial preparation for retirement". 500 of the respondents were employed persons aged 25 to 59 and surveyed through an online questionnaire. 100 of them were retirees aged 60 to 70 and surveyed through street interviews.
Mr. Bob Lee, Chief Business Officer of BCT Group, highlighted the following four key points of the survey results.
- The majority of the respondents were positive and optimistic about their retirement. They envisioned a retirement where they could enjoy financial freedom, lead a fruitful life and stay socially connected. 76% of them anticipated being financially independent in retirement. When looking at the assets of the respondents, it was found that the average personal assets for the working respondents, after excluding their self-occupied properties, amounted to HK$2 million, compared with just HK$1.5 million for the retired respondents.
- About 30% of the working respondents and 70% of the retired respondents did not adopt any retirement solutions. They lacked of actions to put into place a financial plan for their future. More working respondents than retirees consider adopting retirement solutions in the future and they expect to receive stable income.
- Nearly half (49%) of the respondents thought that they were not getting enough information about planning for their future. In this regard, recommendations from family and friends were their preferred source for more information.
- 85% of the respondents had handled MPF matters during the previous 3 months, which mainly included reviewing MPF account balance, portfolio and fund information. Most of them managed their MPF through websites and mobile applications, indicating that digitalisation is here to stay.
Ms. Ka Shi Lau, Managing Director & CEO of BCT Group, said, "The survey shows that there is a discrepancy between Hongkongers' expectations and actual preparations for the future. Hongkongers who tend to have long life should enjoy a life of prosperity in their golden years rather than worry about their finances. This can be achieved by raising their savings and return rates to grow their retirement nest egg. We encourage everyone to actively plan for the future while living in the present. BCT will accompany the public on their journey by continuing to strengthen its products, launch offers for account consolidation, further optimise its digital services, as well as deepen investor education and establish closer ties with members to create value for their MPF."
She said that BCT is now preparing in full swing for launching more new funds, including post-retirement products, to provide more fund options for members. This, coupled with the latest offers for account consolidation, reflects our determination to create value for its members. Now that more and more people in Hong Kong are adopting digital tools to manage their MPF, BCT has implemented digitalisation in all aspects to help customers embrace eMPF. BCT smart assistant MACY, model portfolio BCT iPortfolio, the development of more e-contribution solutions and the use of digital and social media to deepen investor education are all part of its efforts.
Brand new commitment: shaping tomorrow with you now
Ka Shi Lau added, "Today also marks an important milestone for BCT. The launch of a new brand logo, which give a clean, friendly, fresh feeling, will inject vitality into the brand. The new logo further highlights our corporate purpose: 'b' for bringing value with innovation and insight; 'c' for building connectivity with customers though collaboration; and 't' being a trusted partner of our stakeholders to move towards a sustainable future."