More Hongkongers fear outliving their savings, McKinsey finds

The findings highlight a widening gap between longevity and financial readiness. Hong Kong’s life expectancy is among the highest in the world, yet retirement planning remains uneven and often delayed. Respondents cited a lack of knowledge, a weak sense of urgency and competing financial pressures as reasons for under-preparation. In practice, that translates into heavy reliance on cash and time deposits, and a hesitancy to convert assets into reliable retirement income streams.

The advisory industry has work to do. McKinsey notes “critical gaps” in how advisers engage pre-retirees, from empathy and goal-setting to explaining sequence-of-returns risk and building income ladders that combine annuities, bond ladders and dividend strategies. A shift from product pitching to outcome-based planning, covering guaranteed and market-linked income, healthcare protection and longevity hedges, could help households translate savings into sustainable cash flow.

Policy and market dynamics will shape outcomes from here. Falling interest rates may ease mortgage burdens and lift asset values, but they also compress yields just as retirees look for income. Practical fixes, automatic escalation of MPF contributions, default target-date or target-income solutions, and broader adoption of decumulation tools, can narrow the gap. The broader challenge is cultural as much as financial: replacing a savings mindset with an income plan that can withstand long retirements and rising healthcare costs.