Is Having Enough Money Enough for Retirement Planning?

Mr. Xavier Chan, the Founder and Managing Partner of CWK Global, and Mr. Ray Lee, Vice-Chairman of Hong Kong Accounting Professionals Association, monthly share their views towards financial planning on “Privilege Vita”. 

Hong Kong has the highest life expectancy in the world. To plan for retirement, having emergency reserves is an important part of the process. Among Hong Kong’s population aged 70 and above, about one in ten suffer from cognitive impairment. Even if they have sufficient savings in the bank, they may not be able to access them due to mental incapacity. If they have a joint bank account with others, and if one of the account holders defaults on a debt, all accounts, including joint accounts, may be frozen and even forced to repay the debt. Therefore, the essence of retirement planning is to have emergency reserves that can be accessed at any time. 

In addition, retirement planning involves not only savings and investment issues, but also the need to balance living expenses. According to statistics, the elderly are most likely to fall at home accidentally. Therefore, it is crucial to create an indoor environment suitable for retired people, such as considering whether the floor is uneven and whether the bathroom has anti-slip measures. Renovation expenses can be substantial, so retired people should prepare for them as early as possible.