Retirement planning for singles and married couples without kids
The results of the 2011 Population Census revealed that the proportion of males and females who have never been married and are of marriageable age (20-49 years old) increased significantly in the 10 years prior, from 39.3 per cent and 34.0 per cent to 46.8 per cent and 38.9 per cent respectively.1
Marriage in later years has become an emerging trend among Hong Kong citizens. Considering their age, marriage later in life may also have impact on the decision to have children.
Another survey found that 15.4 per cent of Hong Kong people disagree or strongly disagree with the concept that one should always have children after marriage. 4.9 per cent of Hong Kong adults even declared that they plan to not have children after marriage.2
A recent TV commercial claimed the cost to raise a child in Hong Kong was around HK$4 million dollars. For a single person earning a monthly salary of HK$40,000 (not including potential salary increases, inflation and other variable factors), the total salary income over 10 years will be HK$4.8 million. In other words, raising a kid will consume approximately a decade's worth of the average salary.
Based on this prediction, singles or married couples without children may appear to have an easier time of saving money, therefore allowing them to be better prepared for retirement. However, the necessary amount for a comfortable retirement is highly variable and dependent upon personal preferences.
Furthermore, there are some psychological aspects that must be considered. Would people without dependent children feel less burdened and more willing to spend on themselves, therefore affecting their retirement savings plan? While some retirees receive financial support and care from their children, would those without kids worry about their own future?
In order to protect your wealth and avoid financial insecurity, those without children should understand their needs and have their finances managed as soon as possible. Prudential's specially designed "What is Your Retirement Number?" Calculator can provide you with an objective assessment of your retirement needs. Check it out and get started now.
1Summary Results of 2011 Population Census announced
http://www.info.gov.hk/gia/general/201202/21/P201202210356.htm
23rd Round of Thematic Household Survey (Topic on Hong Kong Families) in 2008, Central Policy Unit,
http://www.cpu.gov.hk/doc/en/research_reports/3rd%20Round%20of%20Thematic%20Household%20Survey_2008_e.pdf
Source: King Content Pty Ltd.
Prudential Hong Kong Limited (A member of Prudential plc group)
Disclaimer: The information in the article is for information and reference purpose only and should not be considered as an offer or solicitation for any of the products or investments mentioned herein.
Prudential Hong Kong Limited ("Prudential") reserves the right to make changes and corrections to its opinions expressed in this article at any time, without any prior notice. You are advised to seek independent advice from appropriate professionals (such as doctors, nutritionists, financial consultants or lawyers, etc) before making any decision on the topic(s) mentioned in this article. Prudential expressly disclaims all liability for the use or interpretation by others of information contained in this article.