Buying children a house and paying for their wedding are the top priorities for Hong Kong’s middle class, who estimate they need at least HK$5 million (US$637,175) to cover retirement expenses, according to a survey by China Construction Bank (Asia).
The bank surveyed 2,500 Hongkongers in January on their savings and wealth management habits, including 511 respondents between the ages of 35 to 55 earning between HK$30,000 and HK$60,000 per month.Twenty-two per cent of respondents said they were saving to buy their children property, while 12 per cent said they were saving for their children’s weddings. Many parents in Hong Kong, theleast affordable housing market in the world, pay for their children’s homes.The average cost of a wedding in Hong Kong was HK$360,577 last year, according to ESDlife, a company specialising in products and services related to weddings, health and families.
The CCB (Asia) survey found that 40 per cent of these middle-class earners said they would need HK$5 million (US$637,175) to cover retirement expenses. Assuming a monthly pay of HK$30,000, an individual would need to save 14 years of their annual income. Some 21 per cent said they would need HK$7 million, while 16 per cent put their requirements at HK$10 million – 27 years of their total annual income.
The median personal income was HK$17,500 as of mid-2018, according to Hong Kong government data.