5 in 10 Hong Kong employees struggle financially: report

Over a quarter of employees are living paycheck to paycheck.

More than half (52%) of employees are struggling with their finances, with some (35%) even living paycheck to paycheck, WTW reported.

Moreover, 29% believe their financial problems will worsen next year.

WTW underscored that financial concerns negatively impact workers' well-being (63%), with 28% reporting higher levels of stress and anxiety.

These financial challenges also impact employees' confidence in their retirement, with 57% stating they are unable to improve their retirement situation, which, in turn, affects their engagement, productivity, and emotional health.

In addition, younger and mid-salaried employees express less confidence in their retirement savings.

Twenty-seven per cent of those aged 40-49 are at risk of not meeting their retirement needs, whilst those under 40 are not saving adequately, with 8% or less allocated for retirement.

“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,” William Chow, Head of Retirement, Hong Kong and Macau, WTW said.

In 2046, the number of senior citizens will almost double to 2.74 million, making up more than a third of Hong Kong’s population.