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A significant majority of Hong Kong’s workforce is facing a substantial shortfall in retirement savings, according to the latest findings from AIA Hong Kong’s “AIA Desired Retirement Tracker.” The survey, which canvassed over 1,000 working adults, found that 72% of respondents do not have enough reserves to retire as planned, with many anticipating a delay of nearly 13 years before they can afford to stop working.
Despite widespread awareness of the financial challenges that come with retirement, nearly 60% of those surveyed have yet to put a clear savings plan in place. Respondents indicated a desired retirement age of just over 62, aiming for a median nest egg of HK$3.29 million. However, the average shortfall stands at HK$2.56 million, highlighting a stark gap between expectations and reality.
The Mandatory Provident Fund (MPF) system, designed as a cornerstone of retirement savings in Hong Kong, is often undervalued by workers. Survey participants expect only about 30% of their retirement funds to come from MPF accounts. This is despite data showing that, by the end of 2024, 125,000 MPF accounts had accumulated HK$1 million or more – a figure that has doubled in the past five years, underscoring the scheme’s long-term growth potential.
Investment decision-making within the MPF system remains a challenge for many. The survey found that 65% of respondents struggle to choose MPF funds, 57% are unclear about fund differences, and more than half do not understand how to interpret fund performance. Additionally, 45% are unaware of their actual annualized investment returns. These knowledge gaps may be contributing to a lack of confidence and engagement with retirement planning.
Generational preferences in investment strategy were also evident. Individuals born in the 1960s tend to favor mixed asset funds, while younger respondents, particularly those from Generation Z, show a preference for equity funds. Both fund types have historically delivered the highest average annualized net returns since the MPF system’s inception. Overall, 69% of respondents expressed a preference for equity funds, with optimism strongest for Hong Kong equities, followed by North American and Chinese markets.
"As Hong Kong people live longer, early retirement planning becomes increasingly important," said Amelie Shen (pictured), chief corporate solutions officer at AIA Hong Kong and Macau. "Yet many have not taken concrete action, and the retirement savings gap remains a pressing issue. At the same time, the market recognises the positive role of smart technology in retirement planning."
In response to these needs, AIA has introduced the MPF Smart Advisor, a digital tool designed to simplify fund selection and provide personalized retirement planning support. The platform offers features such as risk assessment, portfolio comparison, and a retirement gap calculator, aiming to empower users to take a more proactive approach to their financial futures.
The “AIA Desired Retirement Tracker” was conducted between Aug. 13 and 31, 2025, using a combination of online questionnaires and face-to-face interviews with Hong Kong residents aged 18 to 65, all of whom hold at least one MPF account. The survey was independently administered by Cimigo and weighted to reflect the city’s working population by age, gender, and income.