Banking survey: only 34% of ‘silvers’ believe they have enough capital for retirement

Banking survey: only 34% of 'silvers' believe they have enough capital for retirement
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Only one third of Hong Kong investors feel financially prepared for retirement: Cimigo banking survey

HONG KONG – Only one third of Hong Kong’s investors aged 55 and older feel they have adequate capital for retirement, according to a new survey by marketing and brand research specialist, Cimigo.

The annual Cimigo banking survey examines the investment attitudes, perceptions and banking behaviour of the ‘silver hair’ segment, Hong Kong investors aged 55 and above. The survey also asked more than 400 general Hong Kong investors aged 25 and above a range of questions about their confidence in the Hong Kong banking sector, their RMB investment and their use of mobile banking services.

When asked whether they perceive themselves as having adequate capital for retirement, close to half of all silver hair respondents (48%) said no, 18% said they were not sure and only 34% of respondents said yes.

Cimigo Managing Director Hong Kong, Ms Winnie Yeung, said the survey results demonstrate the level of financial stress older Hong Kong consumers feel about their retirement.

“With only 34% of silver hair investors believing that they have enough capital for retirement, the Cimigo banking survey results show that there are a large number of remaining investors who feel a significant level of financial stress about their impending retirement,” Ms Yeung said.

‘Silver haired’ investment

The Cimigo banking survey also asked Hong Kong investors aged 55 and over whether they intend to continue to invest after their retirement, and, if so, the reasons for their ongoing investment.

A majority of silver hair respondents (59%) said that they do intend to invest after retirement. A need to maintain their present standard of living was the most popular reason, quoted by 65% of those surveyed, while the need to counter the effects of inflation was the second most popular reason, cited by 60% of respondents.

Surprisingly, only 38% of Hong Hong’s silver hair investors said that they intend to continue investing after retirement to ensure they have more capital to pass onto the next generation. For the 21% of silver hair respondents who do not intend to invest after retirement, 38% are afraid of taking the risk, 29% do not want to spend the time required to manage such investments, and another 29% feel they will not have the energy to manage such investments. A further 19% of respondents said they just want to enjoy a carefree retirement.

In terms of who influences the wealth management decisions of Hong Kong’s silver hair segment, respondents cited family/myself as their greatest influencer (86%), followed by their bank (84%). The choice of family/myself (83%) was also an important influencer for the general investor aged 25 years and over, however only 69% of these respondents also named their bank as an influencer.

Family friends and colleagues are also an important source of information for researching investment decision among the silver hair segment. While 44% cite the news, 38% name printed media and 37% point to bank staff as their existing investment information source, more than three quarters (79%) of older investors will turn to their immediate social network for information. Only 36% of the general investor population will go to family, friends or colleagues for financial information.

Older investors also differ from general investors in how they use their banking centre or bank branch. While 89% of older investors name their bank branch or banking centre as their preferred channel for wealth management advice, only 55% of general investors feel the same. More than three quarters (79%) of silver hair investors will also purchase investment products from their bank branch, compared to only 31% of general investors.

Cimigo Managing Director Hong Kong, Ms Winnie Yeung, said the Cimigo banking survey results show that bank branches and their staff are vitally important in assisting the Hong Kong silver hair investor make financial decisions and purchase financial products.

“Three of the top five most important attributes driving satisfaction among Hong Kong’s silver hair segment are staff related. Banks need to ensure all their employees who deal with older customers can proactively give advice, know their products well, and can explain products to customers in simple terms.”

“Having a wide variety of relevant financial products is still important. However, Hong Kong’s older investors value staff contact and knowledge much more than the general investor, which is an important insight for Hong Kong’s bank managers to keep in mind for staff training and servicing levels,” Ms Yeung added.

About the survey

The annual Cimigo banking survey has been conducted by Cimigo since 2009 and is designed to provide information on investor confidence, the level of RMB investment in Hong Kong, and the development of mobile banking. The survey is conducted using online methodology among more than 400 Hong Kong general investors aged 25 or above.

The survey includes a booster sample of the ‘silver hair’ segment, comprised of Hong Kong investors aged 55 or above.

Please see the associated Cimigo banking survey media release for further Cimigo banking survey results.

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