Findings from the recent DBS-Manulife Future Ready Survey show that among those surveyed, 42% believe that their biggest challenges from living longer are worsening health, outliving their savings (24%), and having to work longer before retirement (15%). More than half (53%) surveyed say they will protect themselves in the future by building up cash savings, despite inflationary risks. In addition, respondents also say that they need to save 40% of their income to retire comfortably although they currently only save 28%. Gen Z and Millennials, on the other hand, believe they need to save more than half of their income.
If they were to run out of savings, 50% of those surveyed said they would most likely cut their personal expenses, by reducing their entertainment (19%), dining (16%) and clothing expenses (15%). 11% of parents would be prepared to reduce their spending on their children. Roughly 10% of respondents indicated that they would consider downgrading their home if their savings dried up.
“Our survey results reveal that many in Hong Kong are keen to secure their financial futures by diverting more of their income towards savings. However, a high percentage of cash-only savings would expose them to considerable inflationary risks,” said Mr. Wing Lo, Managing Director of Bancassurance at DBS Hong Kong. “We believe that consumers should look to professional, credentialed financial advisors who can help them build long-term financial plans tailored to their needs. Our solutions are designed to resolve many of the concerns raised in the survey while helping customers to grow and protect their wealth. Ultimately, we seek to provide people peace of mind, much of which can be gained through financial freedom.”
“Against the backdrop of the current environment, what these survey findings further confirm is the important need for individuals, young people, and families living in Hong Kong to plan early for their retirement and for their long-term healthcare needs,” said Ms. Tracy Leung, Chief Partnership Distribution Officer of Manulife Hong Kong and Macau. “By seeking help from trusted financial advisors, people in Hong Kong are now able to equip themselves with the right financial solutions to become future ready and make their lives better every day.”
Rising medical costs, limited financial support among top concerns for Hong Kong respondents
The survey also revealed that one of the top concerns for the future for Hong Kong adults is rising healthcare costs (57%). Other concerns include the risk of having another pandemic (58%) and not having sufficient financial resources (54%). More than half (54%) also believe they will be impacted by rising inflation in the next three decades.
One in five adults who participated in the survey say that they have no one to rely on for their retirement. The mass-affluent pre-retirees, aged 35-65, are the most vulnerable of all if they are unable to work – they have not built up enough in savings and would struggle to find help without income. Equally, those with partners believe they can rely on their significant other for emotional support, but not so much for financial advice.
Despite a strong desire among Hong Kong respondents to save more for their retirement and gain financial freedom, one in three have never consulted a financial services professional to plan for their future. Instead, they rely on their own understanding or advice from their family and friends to secure their financial future.
It is to this end that DBS and Manulife have launched the Future Ready campaign to raise public awareness on the importance of financial planning for all, through a series of fun and educational online videos that highlight the survey results. For details, visit here.[1] The DBS-Manulife Future Ready Survey polled 1,409 Hong Kong residents aged 21 to 65 years old between 25 January to 14 February 2022 to understand their concerns about the future and their preparedness to address them.
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About DBS DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world. Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 14 consecutive years from 2009 to 2022. DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience. With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.About Manulife Hong KongManulife Hong Kong has been a trusted name for 125 years. Since our operations started in Hong Kong in 1897, we have grown to become one of the top-tier providers of financial services, offering a diverse range of protection and wealth products and services to over 2.4 million customers in Hong Kong and Macau. We are committed to helping make decisions easier and lives better for our customers.
Manulife Hong Kong, through Manulife International Holdings Limited, owns Manulife (International) Limited, Manulife Investment Management (Hong Kong) Limited and Manulife Provident Funds Trust Company Limited.About ManulifeManulife Financial Corporation is a leading international financial services provider, helping people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we provide financial advice and insurance, operating as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States. Through Manulife Investment Management, the global brand for our Global Wealth and Asset Management segment, we serve individuals, institutions, and retirement plan members worldwide. At the end of 2021, we had more than 38,000 employees, over 119,000 agents, and thousands of distribution partners, serving over 33 million customers. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges and under '945' in Hong Kong.
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