More than half of Hong Kong employees (52%) are struggling with their finances, according to the new survey by WTW, a leading global advisory, broking and solutions company.
The “2024 Global Benefits Attitudes Survey” also found that more than a third of the employees (35%) are living paycheck to paycheck as their financial situation continues to deteriorate.
The research also shows that close to two-thirds (63%) of workers’ well-being is negatively impacted by financial concerns, and more than a quarter (29%) believe their financial problems will get worse in the next year. In particular, 28% say their financial situation is causing them higher levels of stress and anxiety.
These challenging financial circumstances are impacting employees’ confidence in when they can retire. Among those struggling, more than half (57%) reported that they are unable to improve their retirement situation. This has a substantial impact on employee engagement, productivity, emotional health such as anxiety and depression, as well as other aspects of employee well-being.
Furthermore, the younger and mid-salaried employees are less confident about their retirement savings. More than one-quarter (27%) of those aged 40 to 49 years are at risk of not meeting their retirement needs. Those who are younger than 40 years old are among the highest in proportion among all age groups who are not on the right track to retirement and saving 8% or less for retirement.
Mr William Chow, head of Retirement, Hong Kong and Macau, WTW, said, “Our survey shows that one-quarter (25%) of employees aged 50 years and above have indicated that they plan to work past age 66 years, up from 17% before the pandemic in 2019. At the same time, 72% of employees admit that they are not saving as much for retirement as they should be, compared to 69% in 2019.”
Employer retirement programmes remain the primary path for employees to save for retirement. Alongside needing the funds for day-to-day expenses while also planning for retirement, employees are looking for help from their employer to build a retirement nest egg, but they also report needing flexibility for emergencies and a desire to maximise their benefits.”
Hong Kong faces the issue of an ageing population. According to projections by the Census and Statistics Department of Hong Kong, the number of senior citizens will almost double to 2.74m in 2046, compared to 1.45m in 2021, excluding foreign domestic helpers.
Mr Eric Lam, head of Health & Benefits, Hong Kong & Macau, WTW, said, “Employers should continue to take action to improve financial well-being within their organisation. These can include adequate education for employees to help plan their resources and close financial gaps, as well as connecting employees with relevant elements of their total rewards package.”
About the study
The 2024 Global Benefits Attitudes Survey was conducted from January to March 2024. Respondents in Hong Kong included 1,000 employees working at medium and large private-sector employers, representing a broad range of industries.
WTW provides data-driven, insight-led solutions in the areas of people, risk, and capital.