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公共政策研究資助計劃
Project Number :
項目編號：
2013.A3.003.13A
Project Title :
項目名稱：
Retirement Planning for Pre-retiree in Hong Kong
為準退休人士建立退休計劃可行性研究
Principal Investigator :
首席研究員：
Professor CHAN Cheung Ming Alfred
陳章明教授
Institution/Think Tank :
院校 ／智庫：
Lingnan University
嶺南大學
Project Duration (Month):
推行期 (月) ：
12
Funding (HK$) :
總金額 (HK$)：
516,954.00
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Retirement Planning for Pre-retiree in Hong Kong
為準退休人士建立退休計劃可行性研究
Project no. 2013.A3.003.13A
Final Report
Asia-Pacific Institute of Ageing Studies
Lingnan University
Tuen Mun
Hong Kong
28 May 2015
This study is commissioned by the
Central Policy Unit, Hong Kong SAR Government
0
Research Team
Prof. CHAN Cheung Ming Alfred
Dr. NG Wai Yi Annie
Mr. CHUN Wai Sun Derek
Ms. WONG Suk Man Chelsea
Mr. FOK Chun Yin Edwin
Mr. TANG Pak Hang Eric
Ms. CHAN Man Yin Emily
Ms. LAU Wing No Helen
Director & Principal Investigator
Senior Project Officer
Project Officer
Project Officer
Project Officer
Project Officer
Project Officer
Project Officer
Mr. CHAN Wing Chung David
Ms. LI Wing Yin
Project Assistant
Project Assistant
1
Abstract
Title of Project:
Retirement Planning for Pre-retirees in Hong Kong
Retirement denotes a stoppage of monetary income generated from employment, and
also signifies a change of lifestyle as well as the emergence of specific healthcare and
social needs. A comprehensive retirement planning could be a more feasible approach
for pre-retirees and retirees to cope with pre-retirement issues and the challenges of
retirement life. Retirement planning is strongly recommended long before retirement.
In addition, the responsibility of retirement planning should not be taken up solely by
the government and also by individual citizens.
Hong Kong citizens are found doing a little retirement planning, and most of them do
not feel totally confident about their retirement. In Hong Kong, retirement planning is
a near synonym to financial planning, and people usually obtain almost all the
retirement planning information about finance matters such as saving and investment
plans. Nevertheless, from the point of view of active ageing framework, retirement
planning includes preparations for health, security and social participation in order to
meet the specific needs of old-age.
This research study utilizes a mixed approach of quantitative and qualitative data
collection via questionnaire survey, focus group interview and expert in-depth
interview to understand the present situation of retirement preparation for soon-to-be
retired employees from low, middle and high salary groups in Hong Kong and to
construct a localized retirement planning framework. Policy implications and
recommendations for addressing issues on retirement planning are made for the
government and policy makers in the light of the findings.
2
摘要
項目名稱：
為準退休人士建立退休計劃可行性研究
退休不僅是指停止由就業獲得收入，也意味著改變生活方式，以及出現具體的醫
療和社會需求。對準退休和已退休人士來說，一個全面的退休計劃是可應付各種
退休前面臨的問題和退休後的生活挑戰，而且退休計劃應該早於退休前準備。此
外，推動退休計劃不應完全由政府負責，每一位市民也有其責任。
香港市民很少為退休進行計劃，而且他們對退休也沒有十足的信心。在香港，退
休計劃和財務計劃好像已畫上等號，市民所獲得的退休計劃資訊大多都是有關財
政上的，例如儲蓄和投資計劃。然而，從積極樂頤年的角度來看，一個周全的退
休計劃應包括健康﹑保障及參與三方面，從而滿足晚年的具體需要。
本研究採用量性和質性研究相結合的方式 (問卷調查﹑焦點小組訪談及專家深入
訪談)了解低﹑中及高收入群組的準退休人士現時所做的退休準備，從而構建一
個本地化退休計劃框架。研究結果亦為政府及政策制定者在退休計劃議題上提供
針對性的政策建議。
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Table of Contents
Research Team
Abstract
Page
1
2
1
1.1
1.2
1.3
Background
Population ageing and its impact on retirement
Challenges brought by retirement
Objectives of this project
6
6
6
8
2
2.1
2.2
Literature Review
10
Benefits of retirement planning
10
Hong Kong’s situation on retirement expectation and preparation 11
2.3
2.3.1
2.3.2
2.3.3
2.3.4
2.4
2.5
2.6
Regional situation on retirement expectation and preparation
Canada
Australia
Japan
United States
Factors affecting retirement planning intention
Expectation of an ideal post-retirement life
Retirement planning activities
12
12
14
15
17
18
20
20
3
3.1
3.2
3.3
3.3.1
3.3.2
3.3.3
Methodology
Research framework
Sample
Data collection
Questionnaire survey
Focus group interview
Expert in-depth interview
23
23
24
24
24
25
26
4
Findings of Questionnaire Survey
27
4.1
4.2
4.2.1
4.2.2
4.2.3
Sample profile
Intention of retirement planning
Expectation and goal clarity
Personal attitude and capacity
Cost and resources
27
29
29
32
35
4
4.3
4.3.1
4.3.2
4.3.3
Retirement planning behaviors
Public protection
Self-insurance
Self-protection
37
37
37
38
5
5.1
5.2
5.3
5.4
Findings of Focus Group Interview
Sample profile
Low salary group
Middle salary group
High salary group
41
41
41
45
55
6
6.1
6.2
Discussion
Summary of findings
Localized retirement planning framework
60
60
62
6.2.1
6.2.2
6.2.3
6.3
6.3.1
6.3.2
6.3.3
Intention of retirement planning
Retirement planning behaviors
Expert review on the framework
Policy implications and recommendations
Reforms on retirement protection schemes
Reverse Mortgage Challenges
Public Education and encouragement on retirement financial
planning and investment
62
65
67
69
70
71
72
6.3.4
6.3.5
6.3.6
6.3.7
6.3.8
6.3.9
6.3.10
7
References
Appendix 1
Appendix 2
Appendix 3
Appendix 4
Improvements on healthcare services and long-term care
support
Social participation encouragement
Lifelong education development and advancement
Flexi-retirement arrangement
Enforcement of second career after retirement
Maturing the scale of silver hair market
Promoting positive images of the elders
73
75
76
77
78
79
81
Conclusion
82
Questionnaire
Consent form
Demographic data form
Focus group interview guide
84
93
103
105
107
5
1. Background
1.1 Population ageing and its impact on retirement
Population ageing is a global phenomenon that describes a transition in the
demographic structure of a society, which is signified by the simultaneous decline in
the proportion of younger people and increase in the proportion of older people who
aged 60 or above respectively (United Nations, 2002). With the birth rate ranking
amongst the lowest regions in the world, and life expectancy in the top tenth (Central
intelligence Agency, 2013), Hong Kong is no exception and is facing a steadily ageing
population. The elderly in Hong Kong comprised 13% of the total population as of
2011 and is projected to grow dramatically to 30% in 2041 (Census and Statistics
Department, 2012a, b). The decline of mortality and fertility rate is the major cause of
population ageing. The decrease in mortality rate is largely contributed by the medical
advancement which extends the average life span of human and diminished premature
mortality rate in recent decades. The reduced fertility rate may be caused by more
complicated reasons like, changing of social norms and structure. “Baby boom”, the
period between 1946 and 1964 marked by a greatly increased birth rate, also
amplified the impact of today’s population ageing, and a large population born in that
era is now starting to reach the age of elderly and retirement in this decade. The
population of economically inactive individuals due to old age or retirement increased
for 17% between 2005 Quarter 4 and 2014 Quarter 1, from 911,800 people to
1,036,300 people (Census and Statistics Department, 2006; 2014). As population
ageing is a continuous and irreversible phenomenon, the retired population can only
be expected to grow larger in the future, and may potentially exert serious impact and
challenge to the society.
1.2 Challenges brought by retirement
Retirement can be difficult to define. Definition is commonly made in three ways:
economically, socially and psychologically, however, all of them failed to provide a
clear-cut definition (Weiss, 2005). The economically approach is simply the voluntary
exiting of an income generating employment due to age. The socially approach
defines one is retired when one leaves his/her occupation with the acceptance of the
social norms. The psychological approach states that the retirement status of a person
is defined by him or her.
The challenges brought by retirement can be financially related or non-financially
related which can affect not only the individuals but also their family and even the
society (Atchley, 1992; Szinovacz, 2003). Retirement generally indicates the
6
termination of a major income generation source, and the three major financial
sources for Hong Kong retirees are described as a “three-legged stool”: i)
“self-support” which consists of the Mandatory Provident Fund (MPF), personal
saving and investment; ii) “family support” which is the maintenance provided by
children and offspring; and iii) “government support” which includes the
Comprehensive Social Security Assistance (CSSA) and the Old Age Living
Allowance (OALA) (Chou et al., 2004).
The “Self-support” source may not be very sustainable for people from lower income
cohorts. Low-income employees often have problems to render saving and investment
plans for retirement. The only official retirement scheme for most employees, the
MPF, is subjected to the level of income and thus the low-income employees would
have a relatively smaller amount of MPF. Furthermore, the scheme has been
implemented in December 2000 and the protection it provides should require a long
nurturing time, so those who are already in their 40s and 50s at the time of
introducing the MPF do not have enough time to accumulate sufficient amount of
MPF saving (The Hong Kong Council of Social Service, 2013; Department of Social
Work and Social Administration, 2014).
The financial burden will be shifted to “family support” once “self-support” is not
adequate to sustain daily living. Retirement has always been a “personal matter” in
the Chinese society, and the older people are expected to take care of themselves or to
be looked after by their family members. Getting assistance from the government and
related parties is often stigmatized (The Hong Kong Polytechnic University, 2009).
The elderly dependency ratio is predicted to rocket from 188 in 2011 to 549 in 2041
(Census and Statistics Department, 2012a,b). Thus, under the combining effect of low
birth rate and population ageing, the burden of the younger generation will increase
alarmingly and the younger working generation will have to support thrice the number
of elders.
In case the first two legs of the “three-legged stool” fail to protect the retirees,
“government support” will become their final resort. In Hong Kong, the government’s
social security assistance is, however, not universally available. The CSSA is only
available to the neediest, and the OALA is only universally supplied to the people
above 70 years old. Between the fiscal year 2001-2002 and 2011-2012, a 14.7%
growth in CSSA elderly applicants and an increase of 37.5% in government
expenditure on the CSSA was recorded (Census and Statistics Department, 2012b),
indicating that the reliance on government support would ultimately affect the whole
7
society and may impose negative impacts on the financial sustainability and growth of
Hong Kong in due course (Economic Analysis Division, 2013).
Other than the financial aspect, there are a few classical theories that depict the
non-financial challenges encountered by retirees from the social aspect. Summarized
by Hooyman & Kiyak (2005), the first one is the “Role Theory”, which suggests that
everyone have to establish a role in their life course, and losing a role may cause
negative impact on self-esteem and social identity. The second one is the “Activity
Theory”, which suggests one needs to maintain a certain degree of social activities to
keep life satisfactory, but the termination of work is likely to be viewed as a decline in
activity level. The last one is the “Continuity Theory”, which states that one will
prefer to adhere to the patterns of behavior they had nurtured throughout their life
course. With a sudden increase of free time after retirement, maladaptation may occur
and cause psychological distress. The non-financial challenges of retirement also
include the loss in mobility, deterioration of health, downfall in social status, and lack
of friends which might put retirees into social isolation and an unsatisfactory social
life as well as hamper their well-being and quality of retirement (British Columbia
Ministry of Health, 2004).
1.3 Objectives of this project
A thorough and comprehensive retirement plan could be a more feasible approach for
pre-retirees to cope with the financial and non-financial challenges of post-retirement
life. Retirement planning is generally defined as the preparation of financial and
materialistic aspects for retired life, its definition had been expanded to include the
preparations for non-fiscal items like health, psychological preparedness and living
arrangement before retirement as well (Law et al., 1999). Scommegna (2012)
indicated that retirement planning is recognized as a strong mediator of the well-being
and financial security of the retired life. To ensure the better well-being of the older
citizens as well as to minimize the social burden in Hong Kong, it is necessary to
promote people’s awareness to prepare for their own old-age, to understand their
preferred lifestyle of retirement, and to provide them with suggestions accordingly.
This project aims to:
i.
ii.
construct a localized retirement planning framework for the soon-to-be old
employees from different income groups in Hong Kong;
identify and differentiate the determinants of participation, health and security
for retirement planning, which are to be managed by individual or supported
by the government’s policies;
8
iii.
iv.
create an initial but prospective approach on how the government’s policies
and relevant services can address the issue on retirement planning for the
soon-to-be old employees; and
suggest possible actions for the public to take in concern with governmental
efforts for their fulfillment of own responsibility in later life arrangement.
9
2. Literature Review
2.1 Benefits of retirement planning
It is crucial to make retirement preparation earlier in life. Financial Planning relating
with assets and saving, for many, is nearly the synonym and the definition of
retirement planning (Clearview, 2012). Financial resource is a critical factor for one to
consider when to retire, and good financial planning can even facilitate early
retirement or other kind of retirement mode (Barnes-Farrell, 2003). Personal volunteer
saving and MPF need time to accumulate (Chan, 2003), and good financial planning
from early stage of life can help ensure sufficient economic resource after retirement.
Financial experts indicated that financial planning is particularly essential as employer
pensions and retirement plans from social security usually fail to provide adequate
income to maintain the standard of post-retirement life and meet the rises of daily
living, medical and nursing expenses (Dearborn Financial Publishing, 1997).
However, in a holistic point of view, retirement planning also includes preparations
for health, psychological and social well-being, and it was believed that such planning
can help adjust retirement life (Taylor & Doverspike, 2003). Research studies had
shown that nurturing a healthy living lifestyle in one’s youth can effectively reduce
the prevalence of common elderly diseases like heart diseases, hypertension and
cancer, as well as improve psychological well-being (World Health Organization
Regional Office for Europe, 2013). Participation in social activities like volunteering
can increase the chances for an individual in maintaining life satisfaction after
retirement and create beneficiary effects on “physio-psycho-social” well-being
(EuroHealthNet, 2012). Dai-ichi Life Research Institute (2007) found that people who
had made plans for social activities before retirement would double the chance in
participating in the social activities when compared to those without a plan.
Retirement planning is strongly recommended long before retirement. A good
planning not only leads to active ageing, but also helps one adjust to retirement life
and maintain good health, as well as reduce related stress and anxiety (Yeung, 2013).
Without proper preparation, retirees will not be able to meet the specific needs of
old-age. The failure to cope with the retirement life may also in turn cause numerous
social problems (International Labour Organization, 2009).
10
2.2 Hong Kong’s situation on retirement expectation and preparation
In Hong Kong, the average expected retirement age is between 60-70 years old. A
recent study by Hong Kong Ideas Centre (2014) found that the majority (56.6%) of
pre-retirees were expecting to retire at the age of 65-69, followed by 31.1% who
expected to retire at 60-64. According to the Census and Statistics Department (2013),
11.4% of pre-retirees planned to retire at the age of 65 years or above, and 31.2%
expressed that they would continue to work until they were unable to work anymore.
Such findings indicated a discrepancy between the expectation of the pre-retirees and
the current retirement policies of many organizations, which usually set the retirement
age at 60. The reason of extending working beyond the age of 60 is largely due to
financial causes, as 63.3% of the respondents expressed so in Census and Statistics
Department’s study. Such result may reflect the uncertainty in the post-retired
financial expenditure. This is further verified by the Hong Kong Ideas Centre’s study
as more than 70% of the interviewees felt doubtful that their savings and assets can
keep them financially secured until the very end of life. Besides acting as an approach
to ensure financial stability of retired life, other reasons to prolong economic
generating activities included killing time, relieving burden of children and family,
keeping healthy and maintaining the working ability.
Hong Kong citizens were found doing but little retirement planning. In Hong Kong,
retirement planning is a near synonym to financial planning, and almost all the
retirement planning information one can obtain is about financial matters such as
saving plans and insurance. Several studies had investigated the status of retirement
preparation of Hong Kong pre-retirees. The global report “The Future of Retirement:
The Power of Planning” conducted by HSBC (2011) showed that only 46% of the
Hong Kong pre-retirees have an actual plan on securing financial resource after
retirement, which is lower than the 50% of the global trend. Within the four categories
of retirement planning activities, namely financial, health, social life and social
psychological as according to Law et al. (1999), it was revealed that the preparation of
financial and health care planning were similar, with about 30-50% of the respondents
had attempted the planning activities in these two areas. The most commonly
practiced activities are: “quitting health hazard habits”, “watching retirement related
programme on TV”, “saving”, “residential arrangement”, “joining insurance schemes”
and “exercising”. However, the planning of the social life and psychology was being
largely ignored by the pre-retirees (Law et al., 1999; Lee & Law, 2004; Law et al.,
2008). Chong et al. (2006) found that the stressful life and the high living standard are
some of the major factors that preventing some of the citizens in particular from low
income salary band to effectively process retirement planning, and the rapid
11
technological advances and drastic econ-political changes also made people feel that
it is futile to make retirement plans.
Furthermore, the Hong Kong Chinese did not feel totally confident about their
retirement. Lee & Law (2004) found that 61.3% of the respondents had no confidence
or little confidence in making enough money for retirement, and 59.6% expressed no
confidence in financial preparation process. Despite they are unconfident to secure
efficient financial resource in retired life, people who had already prepared for
retirement are significantly more confident about their post-retirement life than those
who had no plans (Law et al., 2006). Though financial resource is the least confident
aspect for pre-retirees, their most pressing concern in post-retirement is health-related
problems (Law et al., 2006).
Currently, the government of Hong Kong provides limited supports and information
on retirement planning (HKSAR Government, 2012). It is necessary to take
preventive measure as soon as possible, which is to urge both younger generation and
pre-retirees to plan for their retirement and take up their responsibility to take care of
their own life in old-age.
2.3 Regional situation on retirement expectation and preparation
The retirement planning status of some developed regions around the globe would be
studied in order to have an understanding on the retirement expectation, readiness, as
well as governmental support in other countries. Four countries are selected to be
reviewed, namely Canada, Australia, Japan, and the United States.
2.3.1 Canada
The Retirement Readiness Survey conducted by Aegon (2014) showed that Canadians
were rated as “medium” in their retirement readiness. 61% of the Canadians had some
sorts of retirement plans, including formal written plans or informal non-written ones.
They were fairly confident that they could retire in a comfortable lifestyle (64%
reported to be “somewhat confident”, “very confident” and “extremely confident”).
According to the global report on the future of retirement released by HSBC (2013),
the Canadians were more confident about their retired financial sufficiency than the
global average. Only about 36% of the Canadians worried about failing to achieve
their retirement goals. Their major approaches in financial preparation were social
protection scheme (Registered Retirement Savings Plan, RRSP), company pension,
home reallocation and other investments (Denton at el, 2001). Although most of the
Canadians have made a certain degree of financial preparation, 58% of the Canadians
12
indicated that their savings might not last long after retirement and they had struggled
with their post-retirement living expenses (HSBC, 2013). Taking personal
responsibility for the retired life is highly acknowledged by the Canadians. 55% of the
respondents expressed “very responsible, far above global average, and they were
capable of understanding the financial related matter themselves in making retirement
planning (Aegon, 2014). In addition, the Canadians had high preference to continue
working after retirement age, and the main reasons included keeping active, career
enjoyment and insufficient saving for retired life. Only 24% reported that they would
stop working immediately after retirement.
From Denton et al. (2001) study, about 77% of the Canadians had made preparation
for their “self-protection” aspect such as cultivation of healthy lifestyle and joining
voluntary groups. When approaching retirement age, the Canadians started to have
more exercise, maintain a better diet, take vitamins, and consult doctors and dentists
regularly. They had new leisure and social activities after retirement such as Tai Chi,
going to senior centers, volunteering, taking computer and calligraphy courses. Some
of the elderly expressed that they had input more time in political activities as well.
The most common social and leisure activities for a retired Canadian were traveling,
spending time with family and friends, and cultivating new hobbies (Aegon, 2014).
In Canada, under the Minister of Employment and Social Development, the Service
Canada webpage (2013) put its focus on retirement planning and different kinds of
pension plans such as the Canada Pension Plan, Old Age Security Pension, and
Guaranteed Income Supplement and Allowance. The website also provides
calculating tools for citizens to estimate their benefits from the pensions. The
Financial Consumer Agency of Canada (2014) also developed a website to introduce
the financial aspect of retirement planning, provide information on the calculation of
retirement expenditure as well as introduce different sources of post-retirement
income and estimate expenditure for leisure plans such as travelling. The Canada
School of Public Service (2014) organized retirement planning courses for public
servants and other relevant personnel in order to enhance their knowledge in
retirement planning. The course introduced knowledge on financial planning, health
and diet, psychological related aspects and challenges of ageing. The Senior Forum
(2013) provided a list of brochures and information that aims to protect both
pre-retirees and retirees from financial scams and frauds. In addition, retirement
planning information sessions are offered by the Public Works and Government
Services Canada (2013).
13
2.3.2 Australia
The average age for Australians to start saving for retirement and making retirement
plan is around 28 and 30 years old respectively, on par with the global average (HSBC,
2013). This figure was echoed by the results from National Seniors Australia (2012),
which revealed the majority of Australian respondents aged 50-59 to have started
financial preparation for retirement more than 20 years ago. The Australians prepared
post-retirement financial resources by owning shares (54.7%), funds (24.5%) and
residential properties (37.6%), and majority of Australians (84.5%) have
superannuation as a financial resource for post-retirement (National Seniors Australia,
2012). The overall superannuation per person is averaged at AUD$150,000, but the
superannuation for the non-working population and lower labour participation group
(e.g. housewives) is much lower, averaging AUD$50,000 (Agnew et al., 2012).
The Australians, however, were found not very optimistic about their finance after
retirement. Nearly half of the Australians expressed uncertainty on their financial
security and expected a decline in post-retirement living standards and around 65% of
the Australians are planning bequests for their families (Agnew et al., 2012). HSBC
(2013)’s study indicated that 57% and 46% of the Australians would have to cut their
spending and struggle with food and fuel costs after retirement respectively, slightly
higher than the world average of 53% and 39%. This explained why it is common for
the Australians to return to the workforce after retirement as they return not only
mainly for financial reasons but also work enjoyment (National Seniors Australia,
2012). In addition, about 15% of the pre-retiree respondents who are employed in full
time job consider switching to part time mode before their actual retirement. Because
these pre-retirees see the partially retirement as an income supplement and can have
more time to travel or socialize with friends (National Seniors Australia, 2012).
According to the National Seniors Australia (2012), the most common approaches for
Australian pre-retirees to prepare for good health included regular medical screening
(84.3%), regulating diet (73.5%), and doing physical exercise (70.7%). However, only
27.8% and 22.5% of the pre-retirees had considered quitting smoking and reducing
alcohol intake, respectively. On contrary to financial planning which started fairly
early, most of the Australians started preparing for good health at around 40 – 49
years old. The Australians deem travelling as their leisure activities in post-retirement
life. Most of them love planning to travel, especially inside the premises of their own
country, after retirement (Earl & Muratore, 2010; National Seniors Australia, 2012;
HSBC, 2013). Other popular plans for retirement leisure for the Australians included
developing hobbies, socializing with others, and taking recreational activities, but
14
they were not interested in lifelong education and volunteering (Earl & Muratore,
2010; Agnew et al., 2012; National Seniors Australia, 2012).
In Australia, the Department of Human Service (2014) provided a comprehensive set
of information on pension, health care, social assistance, working after retirement, and
issues concerning caregivers as well as tools for estimating post-retirement income
and expenses. The Australian Securities & Investment Commission (2014) also
established the MoneySmart website about superannuation scheme, one of the main
retirement protection plans in Australia. A publication titled “Your rights at
retirement”, includes information about details of retired rights viz. right to work,
right to health, right to care, and right to transport, had been released by the Australian
Human Rights Commission (2013). Furthermore, the Department of Communities of
the Queensland Government (2007) made the publication “A guide to retiring:
planning your lifestyle” which focuses more on lifestyle and adjustment.
2.3.3 Japan
The Retirement Readiness Survey conducted by Aegon (2014) revealed about 40% of
Japanese had a written or non-written retirement plan. The Japanese also seemed not
very secure about their retired life: 44% of the respondents associated retirement with
“insecurity” and 55% of the respondents felt not confident or not very confident in
achieving a comfortable retired life. They have not very well prepared their retirement,
particularly in the economical aspect and more than half of the Japanese felt doubtful
if they could save enough for their retirement life. Almost all the Japanese (96%)
thought that they should be personally responsible for their income in retired life. Less
than one-fourth of the Japanese (21%) expressed that they would stop working after
retirement and majority of them (69%) would continue to work after retirement age
for a period of time.
Traveling, spending time with loved ones and starting new hobbies are the greatest
retirement aspiration of Japanese (Aegon, 2014). Research Institute for High-Life
(2006) revealed “four emphases on retirement spending (リタイア消費の４種の神
器)” viz. traveling with spouse, investing in stock market, buying a car and making
home renovation, which are expected by the Japanese pre-retirees. For Japanese civil
servants, some of their non-financial retirement preparation include regular medical
screening, attending retirement seminars, engaging hobbies and leisure activities,
reducing workload and joining regional activities (Nishida et al., 2006).
The Japanese government has implemented a series of policies in promoting
15
well-being of the older population of Japan. To cope with the issues brought by the
severely aged population, the Japanese government launched The Gold Plan 21 for
the purposes of vitalizing image of the elderly, ensuring and supporting their
independent living with dignity, developing mutually supportive local communities
and establishing long-term care services that are trustworthy (Yong et al., 2015). With
the cooperation among private enterprise, non-profit organizations and public
organizations, aiming at promoting the youthful and energetic image as well as
supporting an independent living with dignity for elders, more support on home-based
care are given. The measures include improving the base of long-term care services
by improving its quality and amount, along with preventive healthcare and support
activities for elders to lead a fulfilling life. Examples of the services covered in The
Gold Plan 21 includes home-helpers, home-visit nursing care, in-home-care support
centres, group homes for demented elders and so on. The Plan also targeted to
increase the required skilled workers to provide the necessary service, and to
reimburse families with home-care aides, nursing visits, home alteration and special
nursing-care (Ihara, 2000).
Since 2000, legislation on national long-term care insurance (LTCI) has been enforced
to provide universal LTCI coverage for all adults aged 65 or above in Japan,
regardless of income, assets or family condition. Japanese who aged 40-64 are eligible
to the benefits if they have age-related disease like dementia and have the need to get
assistance, such as home-based or institutional facilities and services. This legislation
aimed to spread the burden of long-term care evenly across the society. Elders have
the freedom to choose from private and public service providers under the
cost-sharing mechanism for long-term care through tax revenue, insurance premiums
and co-payments. This can also reduce labelling effect of using welfare in Japan
(Tsukada & Saito, 2006).
The Ministry of Health, Labour and Welfare introduced the Care-prevention
programme in 2001 to help old people who have not received any care services to stay
healthy (Ministry of Health, Labour and Welfare, 2001). A manual for care-prevention
programme is used to train the elder leaders, as well as classes are given to elderly on
good nutrition and fall avoidance. Furthermore, Healthy Japan 21 was initiated from
year 2000 to 2012, as a national primary prevention programme, emphasizing healthy
lifestyle like eating habit, physical activities, tax elimination on health-promotion
facilities, smoke reduction and so on. The 2nd Healthy Japan 21 was announced in
year 2012 with reforms on the first one, aiming at promoting health equality and
extending healthy life expectancy. It put more emphasis on the relative length of
16
healthy life expectancy, instead of the absolute lifespan (Yong et al., 2015).
2.3.4 United States
The United States (U.S.) citizens seemed to be quite confident about having adequate
financial resources after retirement. Only 33% of the U.S. respondents were not
confident whether being able to retire with a comfortable lifestyle (Aegon, 2014).
Helman et al. (2014) found that such confidence ratio gradually increased from 2009
to 2013, and the U.S. citizens have a fair financial preparation for retirement. 79% of
the U.S. pre-retirees and their spouses have been saving for retirement, and in which
the majority had enrolled in some sort of retirement schemes, which suggested that
the retirement schemes may greatly affect their ability and intention to save. Still, the
U.S. citizens are worried about their saving running out soon. HSBC (2013) found
that as high as 67% of the U.S. respondents expressed such concern. The same study
also revealed that up to 35% of the U.S. respondents disagreed that they had saved
enough, and 61% of them expected the need to reduce daily spending after retirement.
62% of the U.S. citizens expressed that they would remain at work, maybe in different
working mode, after their retirement age (Aegon, 2014).
According to the “Report on the Economic Well-Being of U.S. Households in 2013”
conducted by Federal Reserve Board (2014), many U.S. households are not well
prepared for retirement. Almost half of the respondents had not planned financially
for retirement, with 24% of them said that they give a little thought to it while another
25% claimed they have no planning at all. Generally, the respondents lack intention to
plan for retirement and financial fragility may be a reason for that. Fifty-four percent
of those income under $25,000 stated they have no retirement savings or pension, as
compared to 10% of those earning $100,000 or more. For the source of financial
income planned for retirement, almost a quarter (23 %) reported that they are saving
for retirement using an individual retirement account (IRA), and the same proportion
(23 %) are saving for retirement outside of a formal retirement account. Eleven
percent of respondents indicated that they are saving for retirement by utilizing real
estate or land investments, which, for some, presumably includes tapping the equity
of the home they own.
The health insurance coverage is high in the U.S. Almost all Americans (99.6%), who
aged 65 or above are covered by insurance. In spite of the high insurance coverage
rate, out-of-pocket costs are also a concern for many respondents. The principal form
of health insurance for retirees in the U.S. is the Medicare. But employees would not
be able to enjoy the benefit if they retire too young and the amount may not be
17
enough to cover all expenses during retirement. Medicare Part A is free for all U.S.
citizens who have been paying tax for 10 years or more, or they have to pay a monthly
premium. Beneficiaries of Medicare Part B have to pay a monthly premium for it for
doctor and medical insurance. Low-income citizens may get a financial aid for it.
Medicare part C is also referred to as Medicare Advantage plans which are run by
private companies. Medicare part D covers outpatient drug prescription that requires
another sum of monthly premium. Medigap is a Medicare supplement plan for
Medicare. Under the U.S.’ Affordable Care Act health insurance exchange, this is on
top of the Medicare protection and the beneficiaries pay for this health insurance
themselves.
Yoon (2009) studied participation of eight different activities on both U.S. pre-retirees
and post-retirement: formal volunteer work; informal volunteer work; caregiving;
social contact; physical activities; maintenance/house improvement work; housework;
and religious activity. There is a decreasing trend in doing formal volunteer work,
informal volunteer work, caregiving and maintenance/improvement work from
pre-retirement to post-retirement; while there are more social contact and religious
activity after retirement. Participation rates for housework and physical activity
increase from pre-retirement to early stage of post-retirement, but then decrease for
housework and physical activity in the later stage of retirement. Work for pay in
retirement (also known as bridge employment) is a way of continuity from working
life to retirement life. However, post-retirement work is not a common option for
retirees in the U.S.
The U.S. Department of Labor (n.d.a ; n.d.b; n.d.c) provides a comprehensive
summary of retirement plans, retirement benefits and retirement saving schemes in
America. It also provides guidance and toolkits on financial preparation. The U.S.
Social Security Administration (n.d.) also provides comprehensive information about
retirement for retirees, including different kinds of social security programmes (e.g.
medical services, pensions and earning), retirement options (e.g. working beyond
retirement), and calculators for easy estimation of benefits obtainable after retirement.
2.4 Factors affecting retirement planning intention
While most research studies are focusing on the “how” aspect in retirement planning,
very little is known for the how-why relationship (Taylor & Doverspike, 2003). The
reasons and mediating factors behind the action of retirement planning are rather
unclear at this moment. Fishbein & Ajzen (2010)’s Reasoned Action Approach (RAA)
specified that intentions would precede a reasoned behavior, and the intentions are
18
determined by three factors: i) attitude towards the behavior, ii) perceived norm and
iii) perceived behavioral control. Attitude towards the behavior refers to whether ones
take a liking to a behavior. Perceived norm is related to the social point of view of a
behavior. And, perceived behavioral control refers to the self-efficacy, as well as the
actual skills and abilities to perform a behavior. According to Petkoska &Earl (2009),
predictors of the retirement planning intention can be vastly categorized into
demographic variables which include gender, age, income and education level, as well
as psychological factors such as psychological attributions and knowledge. The
psychological factors can be further categorized into three domains: i) expectations
and goal clarity, ii) personal attitudes and capacities, iii) costs and resources.
i. Expectations and goal clarity
The anticipated long term consequences of post-retirement life are coined as
“concerns” by Wiener & Doescher (2008). “Concerns” has its positive and negative
facets. The positive facet of “concern” called “hope”. “Hope” is closely related with
expected benefits and is more commonly referred as retirement goals in laymen terms.
One of the important correlating factors of retirement goal is goal clarity. The clarity
of retirement goals is positively associated with the goal achievement and the level of
retirement planning activities (Hershey et al., 2007; Stawki et al., 2007; Petkoska &
Earl, 2009).
The negative facet of “concerns” referred to risks, worries and anxieties. Types
of worries can be: financial, emergency, physical and mental fitness, housing,
personal appearance, social relationship, health, leisure and work (Kornadt &
Rothermund, 2013). The higher the worry will make one feel more urged to plan;
however, if the level of anxiety is too high, one may develop a sense of helplessness
and therefore refuse to plan as they no longer believe that planning is useful.
Retirement planning should be done in order to facilitate the actualization of “hope”
and to prevent the risks, worries and anxieties from realizing.
ii. Personal attitude and capacities
The psychological responses to retirement can be positive like feeling of relief and
anticipation or can be negative such as worry, anxiety and distress (Hershey et al.,
2007; Yeung, 2013). Previous studies showed that one’s perceived abilities in
retirement planning including self-efficacy (how one looks at the possibility in
succeeding a retirement goal) and knowledge of retirement planning such as
acquaintance in finance planning and usage of investment tools would also affect
retirement planning intention and behavior (Wiener & Doescher, 2008; National
Taiwan University, 2012).
19
iii. Cost and resources
The cost of performing retirement planning actions is another determinant of
retirement planning intention. If the opportunity cost of planning is too high, it will
reduce the likelihood of retirement planning activities to occur (Wiener & Doescher,
2008; National Taiwan University, 2012). Previous research studies were done mainly
focused on the financial aspect of retirement planning, and details of the non-financial
issues related to retirement are still largely unknown.
2.5 Expectation of an ideal post-retirement life
The expectations of ideal retired life played great roles in motivating one to make
retirement preparation. The definition of “ideal” is different and unique for everyone;
however, some theoretical frameworks still attempted to generalize some of the
common aspects contributing to an ideal retired life. The Active Ageing framework
was first suggested by the World Health Organization and defined as “the process of
optimizing opportunities for health, participation and security in order to enhance
quality of life as people age (World Health Organization, 2002, pp.12)”. Some similar
terms to active ageing are productive ageing, successful ageing, and positive ageing.
The active ageing framework suggested the ideal quality of life for aged people as
optimization of the three pillars of “health”, “security” and “participation”. This
concept is highly recognized worldwide and is being pushed forward in Hong Kong.
Chong et al. (2006) found that the middle aged and older Hong Kong Chinese viewed
the concept of “positive ageing” as:
- Health: ability to stay healthy and active , to be mobile and to eat independently;
- Participation: involving in hobbies, learning, volunteering, socializing activities;
- Attitude: having sense of purpose, happiness, self-esteem and worthiness;
- Social and family support: supporting from spouse, children and friends;
- Financial security: having adequate finance resource (including employment); and
- Residential stability: ageing in place.
These six aspects are well fitted into the three pillars of the active ageing framework
of the World Health Organization.
2.6 Retirement planning activities
According to the Reasoned Action Approach (RAA) by Fishbein & Ajzen (2010), a
behavior would be performed after the formation of intention. Therefore, besides
investigating the intention of preparing for retirement life, actual retirement planning
actions should also be included in order to provide a comprehensive framework of
retirement planning.
20
Some non-local and local studies identified a range of retirement planning activities
(RPAs). Denton et al. (2001) in the “Reflexive planning for later life: a conceptual
model and evidence from Canada” paper stated the three-domain retirement planning
framework called Reflexive Planning Framework. The first domain is Public
Protection, which includes public pensions and other governmental policies aimed to
improve well-being of elderly such as public elderly healthcare schemes. The second
domain is Self Insurance, which refers to personal saving, insurance and other
monetary related preparation that is self-financed. The last domain is Self Protection,
which covers all the non-monetary preparations such as cultivating healthy lifestyles,
participating in society and ensuring social relations. Muratore & Earl (2010) then
developed the Retirement Planning Questionnaire II (RPQ II) based on Denton et al’s
framework. Their proposed RPAs consisted of 28 items which localized for
Australians. Compared with the retirement planning framework suggested by Law et
al. (2008), Muratore & Earl put more emphasis on the financial aspect in their RPQ II
questionnaire.
In Hong Kong, Law (1998) proposed a framework of 17 RPAs such as saving for
retirement, medical insurance, planning for living arrangement, and discussing
retirement with retired people in four categories, namely financial planning, health
planning, psychological planning and living arrangement. Later, some RPAs had been
updated and modified according to the current social situation at that time (Lee & Law,
2004; Law et al., 2008). According to the most updated framework in 2008, the
number of RPAs were increased to 20 items and categorized into financial planning,
health planning, social life planning, and social psychological planning. However,
some elements are found to be omitted in this framework while comparing with
international counterparts. For example, social security, which is often highly
emphasized in the context of retirement planning, as well as public pensions and
government concessions are amongst the most important factors contributing to the
ideal retired life in many countries but are omitted in Law et al’s framework. To make
our retirement planning framework more comprehensive, the social security and
government concession elements should be considered. Table 1 lists out all the RPAs
proposed by Law et al. (2008) and Muratore & Earl (2010).
21
Table 1. Retirement planning activities (RPAs) from Law et al. (2008) and Muratore
& Earl (2010)
Retirement planning activities (RPAs)
Law et al. (2008)
Muratore & Earl (2010)
Financial Planning
1. Saving for retirement
2. Flats and apartments for retirement
3. Stocks and other long term investment for
retirement
4. Purchasing of accident life or saving
insurance
5. Separate account for retirement saving
Public Protection
1. Pensions
2. Senior concessions and allowances
3. Health concessions
4. Senior health care card
5. Government-run retirement seminars
6. Public health programs
Social Life Planning
10. Cultivating hobbies
11. Planning for living arrangement
12. Building connections with medical
practitioners
13. Building connections with lawyers and
social workers
Self Insurance
7. Nominating superannuation fund
8. Superannuation fund performance
9. Living cost
10. Contribution to saving accounts
11. Estate planning
12. Investment
13. Insurance
14. Post-retirement employment
15. Contributing to superannuation fund
16. Checking superannuation fund
17. Checking one’s own asset’s net worth
18. Financial planning seminars
19. Housing arrangement
Social Psychological planning
14. Obtaining retirement related information
from publications
15. Joining retirement workshops and seminars
16. Obtaining retirement related information
from media broadcasts
17. Discussing retirement with family
18. Discussing retirement with relatives,
colleagues and friends
19. Discussing retirement with retired people
20. Discussing retirement with social workers
Self Protection
20. Health screening
21. Going out with friends or family
22. Calling or visiting friends or family
23. Post retirement job without financial
rewards
24. Healthy lifestyle
25. Leisure activities
26. Mental Health
27. Developing new interest or skills
28. Leisure planning seminars
Health Planning
6. Medical insurance
7. Regular Exercise (at least 3 times per week);
8. Body check at least every 2 years;
9. Quit or start quitting health harming habits
22
3. Methodology
3.1 Research framework
The research framework in this study was designed based on the three pillars of health,
security and participation of the World Health Organization’s Active Ageing
framework and Fishbein & Ajzen (2010)’s Reasoned Action Approach (RAA).
The first half of our research framework for retirement planning focused on the
determinants of the intention of retirement planning through three psychological
related domains: (i) expectation and goal clarity, (ii) personal attitude and capacities,
and (iii) cost and resources. The first domain of “expectation and goal clarity” studied
the existence of clear retirement goals, expectations and major concerns on retired life,
and confidence in the social environment. The second domain “personal attitude and
capacities” examined psychological attitude and capabilities towards retirement. The
self-efficacy and self-sufficiency retirement knowledge and skills of pre-retirees were
investigated as well. The third domain “cost and resources” considered both financial
and non-financial resources that are related to retirement planning.
The second half of the research framework for retirement planning examined the
actual performed retirement planning actions based on another three domains as
described in the Reflexive Planning Framework by Denton et al. (2001), including
“public protection”, “self-insurance” and “self-protection”. The retirement planning
activities investigated in each domain were reference to Earl & Muratore (2010)’s
Retirement Planning Questionnaire II (RPQ II) and Law et al. (2008)’s retirement
planning framework.
All the domains of psychological intention and behaviors on retirement planning are
examined in terms of the three pillars of health, security and participation of the active
ageing concept.
Figure 1. Research framework for retirement planning in this study
23
3.2 Sample
The target group of this study was soon-to-be retired employees aged 50 – 64.
As an individual’s socio-economic background largely determined his or her needs
and capability to fulfill such needs on planning for retirement, the participants were
thus categorized according to their income range utilizing the “3 Salary Bands”
system (Civil Service Bureau, 2013; 2014) which has been adopted by the Hong Kong
SAR Government payment mechanism for its being capable to effectively reflect the
market values of different types of work as well as seniority. The three salary bands
and the percentage of civil servants in each salary band are shown in Table 2.
Table 2. The three salary bands
Salary band
Directorate & upper
Middle
Lower
Total
Salary range
(according to the 2014-15
MPS adjustment)
Above $56,811
$18,353 - $56,811
Below $18,353
Percentage
(rounded off to the nearest
integer)
12%
72%
16%
100%
3.3 Data collection
This research study utilized a mixed approach of quantitative and qualitative data
collection methods viz. questionnaire survey, focus group interview and expert
in-depth interview. The questionnaire survey was exploratory in purpose to investigate
the current situation of retirement preparation for pre-retirees from the three salary
bands, while the focus group interview used to describe the data obtained in the
questionnaire. The summarized ideas and opinions from focus group interview were
cross-checked with the questionnaire data and then used for formulating a localized
retirement planning framework. Finally, the expert in-depth interview was conducted
for cross-verification on the constructed retirement planning framework.
3.3.1 Questionnaire survey
The self-administered questionnaire survey provided basic understanding of
retirement planning for soon-to-be retired employees in Hong Kong. The planned
sample size was 200 soon-to-be retired employees aged 50 – 64 which was divided
into three sub-groups according to the “3 Salary Bands”. Quota sampling, which
could describe the relevant characteristics of each sub-group of the population in
accordance with their proportion (Babbie, 2001), was used to match the proportion
indicated in the salary bands. The estimated number of participants in each salary
band was 32 from the lower group, 144 from the middle group, and 24 from the
directorate and upper group.
24
The questionnaire was set up according to the “3 pillars” framework of active ageing.
The questionnaire was written in Chinese and consisted of three parts: awareness of
retirement planning, retirement planning activities, and personal particulars. The first
part “awareness of retirement planning” had seven questions. The first few questions
were about importance and clarity of retirement goals, confidence in achieving
retirement goals, and knowledge and skills sufficiency in achieving retirement goals
on five key aspects viz. health, finance, residential, social and familial relation and
support, and social participation. The remaining three questions were about expected
worries after retirement, current social system and political situation on stability in
retired life, and feeling towards retirement. The second part “retirement planning
activities” had another seven questions. These questions were about public protection,
self-insurance and self-protection domains in preparing retired life, and whether
financial and non-financial resources (e.g. leisure time, social network with related
knowledge) were sufficient to facilitate the retirement planning activities. The
retirement planning activities investigated in each domain were reference to Earl &
Muratore (2010)’s Retirement Planning Questionnaire II (RPQ II) and Law et al.
(2008)’s retirement planning framework. The third part “personal particulars” asked
participants’ age group, gender, education level, number of children, income group,
and employment status. The questions were all closed-ended and composed of Likert
scale, multiple-choice, and yes-or-no questions. The questionnaire was pilot tested
and modification had been made accordingly.
The questionnaire survey was conducted between mid-August and mid-November
2014. A total number of 476 completed questionnaires were collected and the data
were analyzed with SPSS 21.
3.3.2 Focus group interview
The purpose of the focus group interview was to construct a localized retirement
planning framework for pre-retirees from different income groups. Quota sampling
was used in focus groups; therefore the number of groups in each salary band was
following the same proportion as the aforementioned questionnaire survey. The
planned number of focus groups in lower, middle, and directorate and upper bands
was three, four, and one respectively; and each focus group composed of 6 – 8
soon-to-be retired employees aged 50 – 64.
Between mid-October and mid-December 2014, nine focus group interviews with a
total of 49 pre-retirees from the three salary bands (19 from lower group, 24 from
25
middle group, and 6 from directorate and upper group) were conducted. The protocol
of focus group questions was set up with reference to the results of the questionnaire
survey. The determinants and challenges in retirement planning and priorities, as well
as common practices in achieving pre-retirees’ retirement goals were examined.
Pre-retirees’ retirement expectation, understanding of retirement planning, retirement
goals, capacities to make retirement planning, retirement planning actions, and
challenge of retirement planning were also discussed. The summarized ideas and
opinions from the focus group interviews were used to provide deeper understanding
of why and how the retirement planning model should be constructed and may help
formulate a localized retirement planning framework for three salary bands of
pre-retirees.
3.3.3 Expert in-depth interview
A group of six experts was consulted individually to comment on the localized
retirement planning framework constructed based on the above-mentioned focus
group interviews conducted with pre-retirees. The experts were from business and
non-business sectors including employer, director of human resources, chairman of a
policy research centre, chief executive of social service, and chairman of staff
association. The expert in-depth interviews were conducted in April 2015.
Both focus group interviews and expert in-depth interviews were conducted by two
facilitators. Every interviewee had equal chance to express his or her views. All the
content discussed in the focus group discussions and in-depth interviews was
audio-taped, transcribed, and coded for data analysis.
26
4. Findings of Questionnaire Survey
The questionnaire survey examined basic understanding of retirement planning for
soon-to-be retired employees in Hong Kong. A total number of 476 completed
questionnaires, of which 59.7% (n=284) from Lower Level (Low Salary Group),
30.7% (n=146) from Middle Level (Middle Salary Group) and 9.7% (n=46) from
Directorate & Upper Level (High Salary Group) respectively, were collected between
August and November, 2014.
4.1 Sample profile
Age
Most of the respondents (216, 45.7%) were in the age group of 55-59. While the
second largest age group was 50-54 (198, 41.9%), respondents aged 60-64 (59, 12.5%)
were fewer in number comparatively1.
Table 3. Age group of respondents
Age group
50-54
55-59
60-64
Frequency
198
216
59
Percentage
41.9%
45.7%
12.5%
Gender
Among the 476 respondents participated in the survey, 132 were males, accounting of
28.0% of the total respondents and 340 (72.0%) were females2.
Table 4. Gender of respondents
Gender
Frequency
Percentage
Male
Female
132
340
28.0%
72.0%
Education level
As for question concerning education level, nearly 80% of the respondents (375,
79.1%) attained level of secondary school or above. Among them, 248 respondents
(52.3%) were secondary schools’ graduates while 127 respondents (26.8%) had
received tertiary education or above. Only 7 (1.5%) and 92 (19.4%) respondents
showed that they did not attained formal education or received primary education only
respectively.
1
2
3 interviewees did not reveal their age groups.
4 interviewees did not reveal their gender.
27
Table 5. Education level of respondents
Education level
Frequency
Percentage
Not in formal education
Primary school
Secondary school
Tertiary education or above
7
92
248
127
1.5%
19.4%
52.3%
26.8%
Number of children
Over 45% of the respondents (210, 45.4%) had two children in their families.
Meanwhile, the number of respondents having only 1 child accounted for nearly
one-fourth of the total number (105, 22.7%). 70 respondents (15.1%) replied that they
had three children. Respondents who got no child (64, 13.8%) took nearly 14% of the
total number of samples. Though it was found that the number of extended families in
Hong Kong had been diminishing in recent years, 14 respondents (3.0%) revealed that
they had 4-6 children.
Table 6. Number of children of respondents
Number of children
Frequency
Percentage
0
1
2
3
4
5
6
64
105
210
70
4
9
1
13.8%
22.7%
45.4%
15.1%
0.9%
1.9%
0.2%
Current employment status
While asking for details of employment status, most of the respondents (427, 89.7%)
replied that they were full time employees. The rest of the respondents worked part
time job (42, 8.8%) or had other employment status (7, 1.5%) such as self-employed
and contract staff.
Table 7. Current employment status of respondents
Employment status
Full time
Part time
Others
Frequency
427
42
7
Percentage
89.7%
8.8%
1.5%
28
4.2 Intention of retirement planning
Factors of intention reviewed in this study include “Expectation and Goal Clarity”,
“Personal Attitude and Capacities” and “Cost and Resources”.
4.2.1 Expectation and goal clarity
Importance of goals for retirement
Respondents from the three salary groups scored statistically different when they were
asked to weight for the importance of “Good Physical Health” (ANOVA, F=5.94,
df=2, p<.01), “Good Psychological Health and Positive Attitude” (ANOVA, F=16.05,
df=2, p<.001), “Financial Stability” (ANOVA, F=4.96, df=2, p<.01), “Social and
Familial Relation and Support” (ANOVA, F=8.68, df=2, p<.001) and “Social
Participation” (ANOVA, F=13.96, df=2, p<.001) to ones’ retirement life.
While the High Salary Group’s respondents weighted areas such as “Good
Physical Health” (4.00), “Good Psychological Health and Positive Attitude” (3.78),
“Financial Stability” (3.67) and “Social Participation” (3.24) as more important,
people in the Low Salary Group scored the lowest among the three salary groups in
the aforementioned areas (“Good Physical Health”, 3.80; “Good Psychological Health
and Positive Attitude”, 3.44; “Financial Stability”, 3.49; “Social Participation”, 2.89)
and in “Social and Familial Relation and Support” (3.23). Respondents from the
Middle Salary Group weighted higher in “Social and Familial Relation and Support”
(3.47) within the salary groups, showing their relatively more conscious toward
maintaining and even extending their social circles.
Setting of clear retirement goals
More respondents from the High Salary Group would have set clear goals in “Finance”
(Chi-square Test, χ²=12.7, df=1, p<.001), and more respondents from the Middle
Salary Group thought that they had set clear retirement objectives for “Health”
(Chi-square Test, χ²=9.5, df=1, p=.001) and “Finance” (Chi-square Test, χ²=21.6, df=1,
p<.001). Comparatively, a higher proportion of respondents from the Low Salary
Group felt like they did not establish concrete and crystal-clear goals concerning
“Health” (Chi-square Test, χ²=13.8, df=1, p<.001), “Finance” (Chi-square Test,
χ²=42.6, df=1, p<.001) and “Social Participation - Work” (Chi-square Test, χ²=3.5,
df=1, p<.05).
29
Table 8. Importance of retirement planning areas of respondents
Good Physical
Health
Good
Psychological
Health and
Positive Attitude
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Financial Stability Middle Salary Group
High Salary Group
Low Salary Group
Residential
Middle Salary Group
Stability
High Salary Group
Low Salary Group
Social and
Familial Relation Middle Salary Group
and Support
High Salary Group
Low Salary Group
Social
Middle Salary Group
Participation
High Salary Group
*ANOVA, p<0.05.
Mean
3.80
3.88
4.00
3.44
3.71
3.78
S.D.
.451
.330
.000
.607
.454
.417
3.49
3.64
3.67
3.50
3.58
3.67
3.23
3.47
3.41
2.89
3.14
3.24
.592
.481
.477
.574
.495
.474
.581
.528
.541
.585
.565
.565
F-value
p-value
5.94
p=.003*
16.05
p<.001*
4.96
p=.007*
2.55
p=.079
8.68
p<.001*
13.96
p<.001*
Table 9. Comparing the establishment of clear goals of High Salary Group with others
Health
Finance
Residential
High Salary Group
Others
High Salary Group
Others
High Salary Group
Others
Social and
High Salary Group
Familial
Relation and Others
Support
High Salary Group
Social
Participation
Others
- Leisure
Social
High Salary Group
Participation
Others
- Work
*Chi-square Test, p<0.05.
No
15 (33.3%)
179 (43.8%)
12 (26.1%)
228 (53.8%)
7 (15.2%)
77 (18.0%)
Yes
30 (66.6%)
230 (56.2%)
34 (73.9%)
196 (46.2%)
39 (84.8%)
350 (82.0%)
Frequency
45
409
46
424
46
427
20 (44.4%)
25 (55.6%)
45
144 (33.7%)
283 (66.3%)
427
12 (26.1%)
34 (73.9%)
46
143 (33.6%)
282 (66.4%)
425
27 (58.7%)
19 (41.3%)
46
292 (69.5%)
128 (30.5%)
420
30
χ²
p-value
1.80
p=.118
12.73
p<.001*
0.23
p=.406
2.06
p=.103
1.07
p=.193
2.25
p=.093
Table 10. Comparing the establishment of clear goals of Middle Salary Group with
others
Health
Finance
Residential
Middle Salary Group
Others
Middle Salary Group
Others
Middle Salary Group
Others
Social and
Middle Salary Group
Familial
Relation and Others
Support
Middle Salary Group
Social
Participation
Others
- Leisure
Social
Middle Salary Group
Participation
Others
- Work
* Chi-square Test, p<0.05.
No
45 (32.1%)
150 (47.6%)
50 (35.0%)
191 (58.2%)
31 (21.2%)
53 (16.2%)
Yes
95 (67.9%)
165 (52.4%)
93 (65.0%)
137 (41.8%)
115 (78.8%)
275 (83.8%)
Frequency
140
315
143
328
146
328
51 (35.2%)
94 (64.8%)
145
114 (34.8%)
214 (65.2%)
328
43 (29.7%)
102 (70.3%)
145
113 (34.6%)
214 (65.4%)
327
94 (65.3%)
50 (34.7%)
144
226 (70.0%)
97 (30.0%)
323
χ²
p-value
9.48
p=.001*
21.58
p<.001*
1.78
p=.115
0.01
p=.505
1.09
p=.174
1.02
p=.184
Table 11. Comparing the establishment of clear goals of Low Salary Group with
others
Health
Finance
Residential
Low Salary Group
Others
Low Salary Group
Others
Low Salary Group
Others
Social and
Low Salary Group
Familial
Relation and Others
Support
Low Salary Group
Social
Participation
Others
- Leisure
Low Salary Group
Social
Participation
Others
- Work
* Chi-square Test, p<0.05.
No
135 (50.0%)
60 (32.4%)
179 (63.5%)
62 (32.8%)
46 (16.3%)
38 (19.8%)
Yes
135 (50.0%)
125 (67.6%)
103 (36.5%)
127 (67.2%)
236 (83.7%)
154 (80.2%)
Frequency
270
185
282
189
282
192
94 (33.2%)
189 (66.8%)
283
71 (37.4%)
119 (62.6%)
190
101 (35.9%)
180 (64.1%)
281
55 (28.8%)
136 (71.2%)
191
199 (71.8%)
78 (28.2%)
277
121 (63.7%)
69 (36.3%)
190
31
χ²
p-value
13.83
p<.001*
42.60
p<.001*
0.95
p=.197
0.86
p=.203
2.63
p=.064
3.48
p=.039*
Feeling towards retirement life
Respondents from different salary groups had slightly different feelings toward
retirement. A higher percentage of the Low Salary Group (69, 24.5%) reported feeling
anxious about retired life while a higher proportion of the High Salary Group (12,
26.1%) felt anticipated. Unlike the Low Salary Group and High Salary Group, more
respondents of the Middle Salary Group (88, 61.1%) felt rather indifferent about
retirement life.
Table 12. Feeling towards retirement life of respondents
Anticipated
No Specific Feelings
Anxious
Others
Frequency
41
36
12
167
88
26
69
15
5
5
5
3
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Percentage
14.5%
25.0%
26.1%
59.2%
61.1%
56.5%
24.5%
10.4%
10.9%
1.8%
3.5%
6.5%
Retirement worries
Respondents were asked about their expected worries during retirement life. A higher
proportion of respondents from the High Salary Group found “Physical and
Psychological Health” (29, 65.9%), “Boredom and Lack of Activities” (18, 40.9%),
“Lack of Support from Family and Friends” (3, 6.8%), and “Ageing of Appearance”
(7, 15.9%) to be more frustrated. Unlike responses of the High Salary Group, the Low
Salary Group got the highest proportion of people showing concerns toward
“Economic Expenses” (163, 60.6%) and “Living Environment” (16, 5.9%) among the
three salary groups. The Middle Salary Group was found to be the dominating group
feeling the threat of “Admission to Elderly Residential Homes” (17, 12.0%).
4.2.2 Personal attitude and capacity
Self-efficacy
Responses from the three salary groups were statistically different when it came to
confidence level toward “Finance” (ANOVA, F=22.77, df=2, p<.001), “Residential”
(ANOVA, F=4.63, df=2, p=.01) and “Social Participation - Leisure” (ANOVA,
F=3.33, df=2, p<.05). The High Salary Group was the group that felt the most
confident in “Finance” (3.07) and “Residential” (3.36) while the Middle Salary Group
32
got the highest score in “Social Participation - Leisure” (3.03), showing their
self-efficacy in having quality of life after they retire from their work duties.
Table 13. Expected worries of respondents
Physical and Psychological
Health
Economic Expenses
Boredom and Lack of
Activities
Lack of Support from Family
and Friends
Admission to Elderly
Residential Homes
Ageing of Appearance
Living Environment
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Yes
160 (59.5%)
92 (64.8%)
29 (65.9%)
163 (60.6%)
47 (33.1%)
7 (15.9%)
66 (24.5%)
39 (27.5%)
18 (40.9%)
14 (5.2%)
6 (4.2%)
3 (6.8%)
22 (8.2%)
17 (12.0%)
2 (4.5%)
19 (7.1%)
14 (9.9%)
7 (15.9%)
16 (5.9%)
3 (2.1%)
1 (2.3%)
No
109 (40.5%)
50 (35.2%)
15 (34.1%)
106 (39.4%)
95 (66.9%)
37 (84.1%)
203 (75.5%)
103 (72.5%)
26 (59.1%)
255 (94.8%)
136 (95.8%)
41 (93.2%)
247 (91.8%)
125 (88.0%)
42 (95.5%)
250 (92.9%)
128 (90.1%)
37 (84.1%)
253 (94.1%)
139 (97.9%)
43 (97.7%)
Perceived knowledge and skills available
Research results showed that respondents from the three salary bands had strongly
different attitudes toward the knowledge and skills they acquired in “Heath” (ANOVA,
F=6.33, df=2, p<.01), “Finance” (ANOVA, F=35.12, df=2, p<.001), “Residential”
(ANOVA, F=11.17, df=2, p<.001), “Social and Familial Relation and Support”
(ANOVA, F=6.87, df=2, p=.001), “Social Participation – Leisure” (ANOVA, F=15.09,
df=2, p<.001) and “Social Participation - Work” (ANOVA, F=14.46, df=2, p<.001)
for retirement planning and the differences found are statistically significant.
Respondents from the Low Salary Group scored the lowest score in all the
categories viz. “Heath” (2.81), “Finance” (2.42), “Residential” (2.91), “Social and
Familial Relation and Support” (2.89), “Social Participation – Leisure” (2.73) and
“Social Participation - Work” (2.66). The High Salary Group got the highest scores in
almost all areas (“Heath”, 3.09, “Finance”, 3.23, “Residential”, 3.36, “Social and
Familial Relation and Support”, 3.18, and “Social Participation - Work”, 3.17), except
for “Social Participation – Leisure”, which was dominated by the Middle Salary
Group (3.08).
33
Table 14. Self efficacy of respondents
Health
Finance
Residential
Social and Familial
Relation and Support
Social Participation Leisure
Social Participation Work
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Mean
2.86
2.91
2.82
2.52
3.00
3.07
3.05
3.17
3.36
3.05
3.08
3.04
2.86
3.03
3.02
2.72
2.87
2.92
S.D.
.735
.605
.716
.819
.683
.625
.703
.643
.570
.640
.572
.562
.693
.606
.621
.727
.624
.703
F-value
p-value
0.29
p=.745
22.77
P<.001*
4.63
p=.010*
0.13
p=.879
3.33
p=.037*
2.74
p=.066
F-value
p-value
6.33
p=.002*
35.12
p<.001*
11.17
p<.001*
6.87
p=.001*
15.09
p<.001*
14.46
p<.001*
*ANOVA, p<0.05.
Table 15. Perceived knowledge and skills available of respondents
Low Salary Group
Middle Salary Group
Health
High Salary Group
Low Salary Group
Middle Salary Group
Finance
High Salary Group
Low Salary Group
Middle Salary Group
Residential
High Salary Group
Low Salary Group
Social and Familial
Middle Salary Group
Relation and
Support
High Salary Group
Low Salary Group
Social Participation Middle Salary Group
Leisure
High Salary Group
Low Salary Group
Social Participation Middle Salary Group
Work
High Salary Group
*ANOVA, p<0.05.
Mean
2.81
3.03
3.09
2.42
2.92
3.23
2.91
3.17
3.36
2.89
3.09
3.18
2.73
3.08
3.04
2.66
2.96
3.17
S.D.
.715
.603
.661
.762
.736
.605
.731
.699
.570
.667
.602
.442
.671
.567
.673
.681
.676
.543
Relationship between self-efficacy and perceived knowledge and skills
There were strong positive relationships between the respondents’ self-efficacy and
attitudes of having sufficient knowledge and skills for retirement planning in all the
aspects concerned. For instance, while respondents from the Low Salary Group
believed that they got the knowledge and skills to plan for health in retirement life,
34
they felt like being more confident in achieving the corresponding health related
retirement goal (r=.452, n=284, p<.001). The same kind of positive relationships are
found also in areas including “Finance”(r=.607, n=284, p<.001), “Residential”
(r=.579, n=284, p<.001), “Social and Familial Relation and Support” (r=.428, n=284,
p<.001), “Social Participation – Leisure” (r=.422, n=284, p<.001) and “Social
Participation – Work” (r=.563, n=284, p<.001). The results of the Middle and High
Salary Groups were also found to have the aforementioned positive relationships
between self-efficacy and perceived knowledge and skills in all six aspects. Details of
results can be found in Table 16.
Table 16. Relationship between self-efficacy and perceived knowledge and skills in
health, finance, residential, social and familial relation and support, and social
participation of Low, Middle, and High Salary Groups
Health
Finance
Residential
Low Salary Group
.452**
.607**
.579**
**
**
Middle Salary Group .550
.560
.684**
High Salary Group
.608**
.635**
.790**
** Correlation is significant at the 0.01 level (2-tailed).
Social and
Familial
Relation
and
Support
.428**
.527**
.517**
Social
Social
Participation Participation
– Leisure
– Work
.422**
.572**
.541**
.563**
.576**
.726**
4.2.3 Cost and resources
The three salary groups had significantly different attitudes toward the availability of
well-fitted social system and political situation for retirement life protection (ANOVA,
F=4.46, df=2, p<.05). Among the three salary groups, respondents from the High
Salary Group got a relatively higher mean score of 2.13 while respondents from the
Low Salary Group (1.88) was the least confident group toward the current social
system and political stability in facilitating their retired life, implying that they
thought that the resources available in terms of public protection provided by the
government was inadequate to a certain extent.
Respondents were also asked to comment on the availability of financial and
non-financial resources such as leisure time, social network, etc. in facilitating them
to perform the retirement planning actions. The three salary groups were found to
have significantly different attitudes toward the non-financial resources available for
public protection (ANOVA, F=26.36, df=2, p<.001), self-insurance (ANOVA,
F=36.41, df=2, p<.001) and self-protection (ANOVA, F=43.37, df=2, p<.001). Also,
they have significantly different point of views over the present of financial resources
35
for self-insurance (ANOVA, F=41.80, df=2, p<.001) and self-protection (ANOVA,
F=46.55, df=2, p<.001).
Respondents from the High Salary Group were found to feel more secure toward the
availability of non-financial resources in performing retirement planning activities in
all aspects, including “Public Protection” (2.82), “Self-insurance” (2.73) and
“Self-protection” (2.89) and those from the Low Salary Group scored the lowest in
the respective areas (Public Protection, 2.20; Self-insurance, 2.11; Self-protection,
2.16).
As for financial resources, results were quite similar to that of the availability of
non-financial resources. Respondents from the Low Salary Group were found to have
the least financial resources available for advocating their behaviors in
“Self-insurance” (2.04) and “Self-protection” (2.09) in retirement planning while the
High Salary Group’s respondents were the most faithful ones among the three salary
groups toward their availability of financial assets in facilitating their retirement
actions (Self-insurance, 2.86; Self-protection, 2.93).
Table 17. Attitudes toward social system and political situation of respondents
The current social system
and political situation in
Hong Kong can facilitate
stability in your retired life?
*ANOVA, p<0.05.
Low Salary Group
Middle Salary Group
High Salary Group
Mean
1.88
2.06
2.13
S.D.
.683
.754
.757
F-value
p-value
4.46
p=.012*
Table 18. Availability of financial and non-financial resources of respondents
Public Protection
Self-insurance
Self-protection
Non-financial
Resources’
Availability
Financial
Resources’
Availability
Non-financial
Resources’
Availability
Financial
Resources’
Availability
Non-financial
Resources’
Availability
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
*ANOVA, p<0.05
36
Mean
2.20
2.70
2.82
2.04
2.65
2.86
2.11
2.69
2.73
2.09
2.71
2.93
2.16
2.74
2.89
S.D.
.707
.721
.644
.753
.683
.639
.692
.649
.694
.761
.678
.545
.721
.616
.538
F-value
p-value
26.36
p<.001*
41.80
p<.001*
36.41
p<.001*
46.55
p<.001*
43.37
p<.001*
4.3 Retirement Planning Behaviors
To ensure retirement life is well-organized, as mentioned previously, it is necessary to
plan ahead. Here come the results of respondents from the three salary groups over
retirement planning behaviors in different aspects.
4.3.1 Public protection
While the government tried to use assisting schemes and senior concession allowance
as means to advocate citizens’ retirement livelihood, research results revealed that
effectiveness of such measures may be subject to different salary groups as they were
found to have quite different reactions over the provision of governmental schemes
and allowance.
Respondents from the Low Salary Group were found to respond to the governmental
scheme (151, 58.3%) and senior concession allowance (187, 71.1%) more actively by
having better understanding toward these issues. On the contrary, possibly due to the
fact that there were no immediate need for the assistance from government financially,
respondents from the High Salary Group might think that governmental assisting
scheme and concession allowance were rather less significant. Thus, a comparatively
smaller proportion of people with high income reported to actually understand the
public protection schemes provided by the government.
Table 19. Retirement planning activities - Public Protection of respondents
Understanding governmental
assisting schemes (e.g. the
Comprehensive Social Security
Allowance, the Old Age Living
Allowance, etc.)
Understanding governmental
senior concession allowance (e.g.
Senior Card, Transport
Concession, etc.)
Low Salary Group
Middle Salary Group
High Salary Group
Yes
151 (58.3%)
65 (45.5%)
10 (22.7%)
No
108 (41.7%)
78 (54.5%)
34 (77.3%)
Low Salary Group
Middle Salary Group
187 (71.1%)
82 (57.7%)
76 (28.9%)
60 (42.3%)
15 (34.1%)
29 65.9%)
High Salary Group
4.3.2 Self-insurance
Respondents from the High Salary Group were more sensitive toward financial
management. Thus, they tended to participate more actively in self-insurance related
activities, especially for tracking Mandatory Provident Fund (MPF) performance and
making adjustment(s) for retirement (19, 41.3%), making MPF voluntary contribution
(10, 21.7%), contributing personal saving for retirement life (40, 88.9%), making long
term investment (37, 80.4%), contributing to insurance (35, 76.1%), assessing
post-retirement assets (25, 54.3%), and making housing arrangement (24, 52.2%).
37
A relatively higher proportion of respondents in the Middle Salary Group were found
to attend more formal financial planning seminars (34, 23.4%), to have more planning
for post-retirement jobs (for financial purposes) (54, 37.0%) as well as to be more
concerned with the making of an estate or a will (34, 23.4%). In contrast, the Low
Salary Group compared with the other two groups, had the lowest participation rate in
retirement planning activities concerning self-insurance.
4.3.3 Self-protection
It is also essential for individuals to prepare themselves in terms of self-protection
including “Health”, “Social and Familial Relation Support” and “Social Participation”
to remain energetic and to avoid being isolated from the society.
It was showed that more respondents in the High Salary Group engaged in health
related activities such as performing regular health checkup (32, 69.6%) and
establishing healthy living habits (37, 82.2%). On the contrary, only about 50% and
70% of respondents in the Low Salary Group reported that they had performed
regular health checkup and screening and established healthy lifestyle respectively.
As for activities concerning “Social and Familial Relation and Support”, results
revealed that respondents in the Middle Salary Group valued the opinions of family
and friends and other social sources in retirement that many of them would spend time
discussing the retirement planning issues with others (77, 52.7%) and searching for
retirement details from different information sources (81, 55.5%). Compared with the
other two groups, respondents from the Low Salary Group were more concerned
about the relationship with their family and children so they were found to have more
involvement in building a stronger family bond (205, 72.7%). As for the High Salary
Group, though they also treasured the relationship between family members and
would take part in activities that reinforced family’s relations (33, 71.7%), they paid
relatively more attentions also to the planning of post-retirement jobs for
non-financial purposes (24, 52.2%), showing their readiness to contribute to the
society in their retirement life.
Concerning “Social Participation”, a higher proportion of respondents from the
Middle Salary Group responded that they had plan of learning (82, 56.2%) while the
High Salary Group had more planning over leisure activities (32, 69.6%).
Respondents from the Low Salary Group were found to be the group with the least
proportion of people having preparation for social involvement, including both
planning for leisure activities (159, 56.2%) and further study (122, 43.0%).
38
Table 20. Retirement planning activities - Self-insurance of respondents
Attending formal financial
planning seminars
Tracking your Mandatory
Provident Fund (MPF)
performance and make
adjustment(s) for
retirement
Making MPF voluntary
contribution
250 (89.0%)
111 (76.6%)
40 (87.0%)
Low Salary Group
Middle Salary Group
54 (19.1%)
50 (34.5%)
229 (80.9%)
95 (65.5%)
High Salary Group
19 (41.3%)
27 (58.7%)
Low Salary Group
Middle Salary Group
38 (13.5%)
31 (21.4%)
244 (86.5%)
114 (78.6%)
High Salary Group
10 (21.7%)
36 (78.3%)
Low Salary Group
Middle Salary Group
High Salary Group
128 (45.4%)
42 (29.2%)
5 (11.1%)
Making long term
investment (e.g. bonds,
stock, funds, properties,
etc.)
Low Salary Group
Middle Salary Group
78 (53.4%)
68 (46.6%)
High Salary Group
37 (80.4%)
9 (19.6%)
Contributing to insurance
(e.g. life, saving accident
and medical insurance,
etc.)
Low Salary Group
151 (53.7%)
130 (46.3%)
Middle Salary Group
93 (63.7%)
53 (36.3%)
High Salary Group
35 (76.1%)
11 (23.9%)
Assessing post-retirement
resources (e.g. net worth of
assets, support from
children, etc.)
Planning for
post-retirement jobs (for
financial purpose)
Low Salary Group
Middle Salary Group
56 (19.8%)
55 (37.7%)
25 (54.3%)
227 (80.2%)
91 (62.3%)
83 (29.4%)
54 (37.0%)
14 (30.4%)
31 (11.0%)
34 (23.4%)
9 (19.6%)
77 (27.4%)
55 (37.7%)
24 (52.2%)
199 (70.6%)
92 (63.0%)
32 (69.6%)
251 (89.0%)
111 (76.6%)
37 (80.4%)
204 (72.6%)
91 (62.3%)
Planning to make or
already made an estate/will
Residential
No
31 (11.0%)
34 (23.4%)
6 (13.0%)
154 (54.6%)
102 (70.8%)
40 (88.9%)
64 (22.6%)
Contributing personal
saving for retirement life
Finance
Yes
Low Salary Group
Middle Salary Group
High Salary Group
Making housing
arrangement (e.g. who to
live with, using residential
homes or not, etc.)
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
High Salary Group
39
219 (77.4%)
21 (45.7%)
22 (47.8%)
Table 21. Retirement planning activities - Self-protection of respondents
Performing regular
health checkup and
screening
Health
Social and
Familial Relation
and Support
Social
Participation
Establishing healthy
lifestyle (includes
healthy diet, regular
exercise, quitting
hazardous habit such as
smoking)
Building and
reinforcing social
network with family
and children
Discussing retirement
with other people
(includes family,
relatives, friends and
professionals)
Planning for
post-retirement jobs
(for non-financial
purpose, includes
volunteering)
Searching for
retirement related
information (includes
the information
obtained from books,
TV, Internet and
workshops)
Yes
No
Middle Salary Group
High Salary Group
Low Salary Group
Middle Salary Group
146 (51.4%)
89 (61.0%)
32 (69.6%)
190 (67.1%)
119 (81.5%)
138 (48.6%)
57 (39.0%)
14 (30.4%)
93 (32.9%)
27 (18.5%)
High Salary Group
37 (82.2%)
8 (17.8%)
Low Salary Group
Middle Salary Group
High Salary Group
205 (72.7%)
102 (69.9%)
33 (71.7%)
77 (27.3%)
44 (30.1%)
Low Salary Group
Middle Salary Group
108 (38.3%)
77 (52.7%)
174 (61.7%)
High Salary Group
23 (50.0%)
Low Salary Group
Middle Salary Group
High Salary Group
130 (45.8%)
74 (50.7%)
24 (52.2%)
Low Salary Group
13 (28.3%)
69 (47.3%)
23 (50.0%)
154 (54.2%)
72 (49.3%)
22 (47.8%)
Low Salary Group
128 (45.4%)
154 (54.6%)
Middle Salary Group
81 (55.5%)
65 (44.5%)
High Salary Group
24 (52.2%)
22 (47.8%)
Planning leisure
activities after
retirement (e.g. hobbies
and travel)
Low Salary Group
159 (56.2%)
124 (43.8%)
Middle Salary Group
95 (65.1%)
51 (34.9%)
High Salary Group
32 (69.6%)
14 (30.4%)
Planning to learn (e.g.
learning new skills and
lifelong learning)
Low Salary Group
Middle Salary Group
High Salary Group
122 (43.0%)
82 (56.2%)
24 (52.2%)
162 (57.0%)
64 (43.8%)
22 (47.8%)
40
5. Findings of Focus Group Interview
The focus group interview examined the perception of retirement, retirement goals,
retirement planning and activities, and retirement challenges of soon-to-be retired
employees from low, middle and high salary groups for comparing with the
quantitative data obtained as well as constructing a localized retirement planning
framework.
5.1 Sample profile
Totally 49 pre-retirees (19 from low salary band, 24 from middle salary band, and 6
from high salary band) aged 50 – 64 had been interviewed between October and
December, 2014. 61% of the interviewees were females and 39% were males. More
than half of the interviewees (57%) attained secondary education level, nearly 35%
received tertiary education or above, and the remaining 8% had primary education or
below. Most of the interviewees (84%) came from business sector and 16% were from
non-business sector. Regarding number of children, nearly 35% of the interviewees
had one child in their families, 43% had two children, 10% had three children, 2% had
four children, and the remaining 10% had no child.
5.2 Low salary group
Low-income group interviewees rated health and money as the most important
retirement goals. However, they do not have so much confidence, skills and
knowledge in reaching the retirement goals, particularly in financial stability and
adequacy. In addition, most of them choose not to plan for their retirement life, as
there are many uncertainties in future which make retirement planning difficult.
5.2.1 Retirement goals
Ranking of different retirement goals
Low-income group interviewees were asked to rank the importance of the goals based
on the three pillars: health, social participation and security. They mostly thought that
health is a top priority. However, some of them indicated that money ranks first as it is
indispensable for the daily expenses, as they have somehow struggled to make ends
meet. Some believed that with enough money in hand, medical and healthcare
protection could be secured after retirement. Psychological health was given less
importance. Social participation and relationship with family members are given the
least significance.
41
Clarity and existence of retirement goals
Goals will be set in implementing and actualizing the “hopes” and minimizing the
“risks” in retirement life. Low-income group interviewees have different views to
secure a financially stable retirement life, like buying value-adding assets or funds or
managing the savings on their own. The Mandatory Provident Fund (MPF), a
compulsory retirement benefit for workfare in Hong Kong, is generally thought to be
not protective enough and unable to secure a reasonably comfortable living for
interviewees. In addition, interviewees in general are eager to have a perpetual and
fixed residence after retirement as moving house is a headache for the elderly.
A sound health condition is important for retirees to lead a decent life.
Interviewees generally have a sense to keep themselves healthy, for instance,
controlling weight to avoid obesity as well as to reduce fat and sodium consumption
in their diet.
Interestingly, when interviewees were asked whether raising grandchildren is a
burden or a joy, all of them, except one, found it very arduous. The household chores
and the responsibilities of taking care of young children are huge and they are willing
to invest the time to do their favorite leisure activities. They would be more content if
their grown-up children are independent without relying on them financially, not to
mention supporting the elder parents after retirement. The long-standing belief of
raising children as a means to secure a decent retirement life seems not too prevalent
nowadays.
Pressure from daily life after retirement causes negative impact on the
psychological and social health of retirees, low-income group interviewees have
different plans to participate in the society. For those with more financial restraints
may choose to take up part-time jobs after retirement. This is to make their life more
fruitful, at the same time, to earn more income. Among the interviewees who would
choose to work after retirement, all of them thought that the job should have little
stress and short working hours. The job nature ought to be interesting and enjoyable.
Otherwise, they would prefer performing leisure activities; a common activity after
retirement is to attend interest classes at the elderly centres or to further study. Other
than learning something new, travelling overseas and doing volunteer work are
popular choices.
Confidence in achieving retirement goals
Given the monetary constraints of low-income group interviewees, they may not have
so much confidence in reaching various retirement goals, particularly in financial
aspects. There are loads of worries over the financial stability and adequacy that may
not have enough money to use in the rest of their lives. The MPF is not a reliable
42
retirement protection as the investment can be risky. The difficulties for low-income
group people to save up money for retirement use are acute. Deterioration of physical
health condition accompanying ageing is unpredictable. So it is hard to say if
interviewees are confident about the health aspect or not. A healthy body is a
prerequisite to active social participation, whether to go on working or joining interest
classes.
5.2.2 Retirement planning and activities
Awareness, skills and knowledge to plan for retirement
Low-income group interviewees mentioned that there is no such thing as retirement
planning in school education as well as in government’s publicities. Hence awareness
of the need of planning among the public is weak. Still, they perceived that their
awareness towards retirement planning is stronger when compared to the last
generation.
Some interviewees thought that the future is turbulent and unpredictable and they
would not plan for retirement life. They preferred to act according to the upcoming
situation rather than planning for uncertain circumstances in future. For instance, if
one’s health deteriorates drastically then all of his plans would go in vain. Some
interviewees indicated that their income has been too slim to cover current daily
expenses, not to mention to manage their wealth for retirement plans. One aged
interviewee with traditional thoughts responded that she would rely on the decision of
her husband in retirement planning as she has been dependent on her husband since
getting married.
Although interviewees may not notice the serious challenges lying ahead in
retirement, they mostly are aware of the importance to stay healthy. Through a
balanced diet and regular exercise starting from young age, it is possible to maintain a
fit and strong physical in the future. Interviewees understand the importance of health,
especially for those who had the experience of getting ill, and in general they have a
sense of awareness to keep themselves fit and healthy.
When interviewees were asked to suggest some ways to maintain financial
stability, a number of risky means are given, like buying stocks, warrants or winning a
lottery. However, they demonstrate inadequate knowledge in investment and may seek
help from financial planners to keep a stable growth of the pension. As the cost of
living rises, the fixed amount of pension is not enough to support the living. Besides,
interviewees are alert to the pattern of spending, and they planned to be very thrifty as
there are too much daily expenses like travelling, all sorts of bills and everyday meals.
Some of them have started to save money for retirement when the retirement age
is approaching, which in fact is too late as it is always better to plan for retirement as
43
soon as possible, like in the age of 30s.
In planning for leisure activities for retirement, interviewees thought that they
need some time to take a break first to explore their interests. The leisure activities
include attending interest classes, travelling overseas and taking part in community
affairs. Getting active and busy is an effective means to reduce physical and
emotional problems.
Planned activities after retirement
Interviewees planned to join volunteer work and to engage in the community actively,
as the experience would be rewarding and fruitful, but there is a view that access to
information about volunteer work is insufficient. Other than volunteer work,
interviewees believed that with a devoted and enthusiastic attitude on the
post-retirement work, on top of the monetary reward, it would bring enjoyment to
retirement life. There are activities planned for self-protection purpose, for example,
interviewees would conduct regular health checkups, see a doctor when there are any
health problems, and keep a healthy diet with less salt, oil and sugar. Being grateful to
the health condition, interviewees would enjoy a fruitful retirement life. Also, social
networking with more people can help reduce sad and depressed feelings as
retirement would bring a lot of boredom. The larger the social circle, the wider the
horizon in perceiving hardships. The most important mentality for retirement is to be
open-minded and happy.
5.2.3 Retirement challenges
Feelings on retirement
There were mixed feelings expressed by low-income group interviewees on
retirement. On one hand, some of them longed to retire for years and looked forward
to a comfortable and relaxed life. Retirement is like a honeymoon that they can
choose their favorite things to work on while waking up naturally in the morning. On
the other hand, there are worries such as adaption, health and financial matters after
retirement. The interviewees fear over monotony and loneliness without going to
work. Having a part-time job or joining social activities can be ways to kill time,
otherwise, the retirees would feel disoriented and bored. However, concerns over the
post-retirement employment also bother interviewees, for example, it is difficult to
purchase insurance after the age of 65 for the employees, therefore, even if their
health condition is fit, they may not find a job so easily. Regarding the pension matter,
low-income interviewees said that they have to be very cautious and thrifty in
spending money as the amount of pension is not too sufficient for retirement life.
44
Difficulties in retirement planning
For low-income interviewees, the largest hindrance of retirement planning is financial
concerns. Money is needed for loads of daily expenditures, such as social activities,
commuting, food, healthcare and so on. If their children are still dependent,
interviewees found it hard to make ends meet, with heavy burden to pay tuition fees,
not to speak of planning for future retirement life. They also felt distressed after the
long working hour, with heavy burden on housing chores after work, so they have no
room to ponder upon their retirement life. Besides, too many uncertainties in future
make retirement planning difficult. Say the nightmare of inflation, it would erode the
purchasing power of pension and limited income brutally. Another example is the
unexpected sudden decline in health, even the person has been physically fit for long.
Therefore, many interviewees choose not to plan for their retirement life, as they feel
physically exhausted with their working life, and hard to save money with low income
and huge daily expenses. In addition, not many retirement options are available to
them and how they would act depending on the future circumstances.
5.3 Middle salary group
Most of the middle-income group interviewees begin different levels of retirement
planning, and health and residential aspects are their top-priority retirement goals.
They are not very worried on retirement and anticipate creating a colorful and fruitful
retirement life.
5.3.1 Perception of retirement
In modern age, retirement is a complicated conception while it implies different
meanings. Generally, middle-income group interviewees have figured out different
criteria what should be considered at retirement. The result comes up with a varied
picture that retirement is no longer a popular option, as retirees may possibly have to
encounter a lot of imponderability, in which retirement may bring more uncertainties
to retirees.
Most of the interviewees are concerned with the financial capacity for their
retirement life, as retirement safeguard is all self-protective. Under current situation, a
secure capacity is crucial because Hong Kong does not have a Universal Retirement
Protection (URP) scheme to well-safeguard retirees’ well-being. This may therefore
force some older workers to work until incapable, though they would like to get
retired earlier. In this sense, the prerequisite of retirement is whether the basic need of
prospective retirement life can be fully fulfilled, otherwise retirement is no longer
possible, and social participation would be also hard to achieve. Some interviewees
further have pragmatic perspective that if a retiree is poorly healthy, their retirement
45
life would be so rough. While medical technology had been advancing rapidly, many
diseases could be treated with high cost, so financial capacity is critical to pre-retirees
and retirees to prepare for unforeseeable medical expenses. However, a number of
interviewees pointed out that money are only one of the critical factors of retirement.
If a retiree is optimistic and knowing contentment, money impact would be lessened.
Interviewees also mentioned a lot about the relationship between age and
retirement, when age is the common practice to identify the concept and practice of
retirement. Many interviewees claimed 60 is the common retirement age, but not
everyone would stop working at once. They believed that retirement age extension
would be a trend in future, and life expectancy prolonging may compel them to have
better financial capacity to sustain their life expenses, thus post-retirement work may
become more common in Hong Kong. However, this does not signify they would like
to work as longer as possible, they have set the maximum retirement age at 65, and
appropriate age is 62, when working too old may let them and employers tackle
inestimable risks. An interviewee indicated a worry about retirement was due to the
fact that succession plan cannot be properly completed at her work. Presently, in large
scale company, succession training has been provided for soon-to-be retired
employees in order to handover all the tasks to young successor, yet the successor’s
performance is not competent which makes the interviewee queries if retirement can
come true. When succession plan needs more time for completion, the interviewee
will be invited to be a consultant and allowed to work flexibly until the whole
succession can be fully carried out. The interviewee further emphasized it is only the
individual case for her company and should not be that common, but young workers’
loyalty as well as responsibility are threatening future human resource development. It
shows that the time of retirement may therefore depend on the real situation of the
working company rather than reaching the retirement age.
Health is another key factor to be considered on retirement, as health dictates
how retirement life can be practiced and planned. Every interviewee agreed that
health is the most important aspect of retirement that everyone should be seriously
paying close attention to. Interviewees understood that if they cannot get healthy in
their retirement life, they not only have to suffer pains and costly medical
expenditures, but also they cannot freely enjoy their retirement life, and even
continuing work. In their views, a successful retirement life requires energy and, most
importantly, health to practice their retirement planning, otherwise planning and
almost everything is no longer actualized. In other words, health is irreplaceable,
when bedridden life has been an only way of the retirement life, it is same as waiting
the end of lives, thus “no health, no retirement life”.
In Chinese tradition, raising children as a means to secure in post-retirement life
46
is a common practice as the last bulwark for the parents to depend on, while this
belongs to Confucian ethics that filial obedience and financially support to older
parents are an obliged duty to the grown-up children, yet the reality shows this is
mistimed and infeasible. Generally speaking, interviewees have relatively low
expectation to be financially supported by their children under present situation, as
their children have to deal with lots of personal burdens, such as flat purchase and
child maintenance etc., and what they can do is self-reliant so as to decrease the
support from their children. If their children may sometimes give some money to
them, they would deem it a bonus. For interviewees who want to help their children,
except for self-reliance, they try their best to keep the original flat ownership to their
children for their future or emergency use. Consequently, children’s financial support
is no longer sustainable and stable in modern age, and it is already fortunate while
older parents would not have to carry on maintaining their children, which had been
becoming an inevitable social trend.
Remarkably, some interviewees have special opinion to the conception of
retirement. An interviewee mentioned that while they need to work after retirement,
retirement is a questioned conception which seems contradicting to the context of
retirement. When someone is failed to sustain their retirement life after reaching the
retirement age, they are still forced to carry on working, retirement is not a free choice
and cannot be selectively decided. In addition, the determinants of retirement should
not be mutually exclusive, physical health, mental state, financial capacity and
residency are equally significant. As an ideal retirement life, it is perfect that if the
aforesaid aspects have been well-prepared, even some may think health should be a
predominant factor, this consensus is all agreed by interviewees. Moreover, some
interviewees make clearly that one’s retirement decision depends upon one’s
retirement goals and expectations.
5.3.2 Retirement goals
Ranking of retirement goal importance
Retirement is the final stage of the whole life. Middle-income group interviewees
indicated that health has been placed the highest importance at the setup of retirement
goal. Health directly influences the practice of retirement goal. Without health,
retirees are unable to perform different leisure activities, carry on working and spend
the wealth reserved for retirement use. Another retirement goal deemed important is
residency, which should be drawn special attention to the current retirement planning.
Residency, to great extent, is a shelter of retirement as they may not have to seek for a
hand on accommodation; it is the most effective safeguard on retirement life. In
addition, interviewees regarded that ageing in place is important because of the high
47
social capital capacity, and they cherish more on their neighborhood and resist on the
change of new environment. Therefore, residency has been the second preference on
the setup of retirement goal.
Confidence in achieving retirement goals
Middle-income group interviewees intend to be confident on psychological and social
participation aspects, which would all depend on their personal arrangement.
Nevertheless, they highlighted the challenges mainly on health and financial aspects.
In health condition, interviewees all agreed ageing may probably cause different
unknown illnesses nowadays, in particular when Hong Kong health care system
suffers an unaffordable demand, and the expenses would become costly. They queried
about how to sustain their health for more than 30 years, while the life expectancy is
increasingly long. Hence, retirement goal is required to make themselves plan their
health better, but it is used to encounter challenges. An interviewee shared some
personal experiences that retirement planning can be only a kind of protective
measure, yet it is not a guarantee to everything. She has planned to have regular
medical check after aged 45 so as to monitor the health condition, in a year of medical
check, she was found to have a suspicious cancerous image. Although it is a false
alarm proving that she is healthy, it already demonstrates checking cannot make sure
everything might be alright. Under this circumstance, health planning is regarded to
help better deal with any accident happened, but it does not mean positive outcome
might come true at last, risk thus is everywhere that everyone should be aware of.
Financial capacity is another focal concern that interviewees may be more
worrying on practicing their retirement goal. Learning from past experiences, many
interviewees also noted global economic situation would directly influence their
property value and return on investment, and MPF may not enable them to get all
their contribution. In this sense, all of the above cannot be the last safeguard for
retirement expenses, other financial reserves should be also prepared. Frankly,
interviewees realized that retirement indicating they might not have more income than
before while they are working, so retirement expenses must be under a reasonable
control. Almost every interviewee has strong intention to fend for their own rather
than seeking for help from others, especially from government assistance or
allowance. If interviewees have pension to be drawn after retirement, or become a
landlord to make their property available for tendency, they may feel safer to their
retirement life when monthly return can be stabilized. In addition, interviewees are
less expecting on their children to maintain their retirement life, also very satisfied if
they do not have to carry on their children’s daily maintenance. Since the new
generation is facing a tough challenge in coming days, the reserved property is spared
48
for the children’s use when necessary. Some interviewees may have to extend
retirement in order to reserve more saving, as well as tackle inflation which
undermining their purchasing power. It is believed the practice of financial retirement
goal would therefore be influenced by economic situation, children’s ability and
personal capacity.
Retirement goal skills and knowledge
In general, middle-income group interviewees are quite confident of knowing how to
identify retirement goal, and they are able to clearly demonstrate their goals in various
aspects. In fact, interviewees indicated that the concern of retirement has been
strengthened in the last two decades and pre-retirees would be more vigorous to plan
their retirement life. In the past, retirement has not been deemed to be a focal issue as
it is a weak concept in society, yet the situation changed after great changes of the
economic development model, which brings uncertainty from time to time and
encourages pre-retirees to be well-planned. However, some interviewees have
opposite ideas that since uncertainties are everywhere and unpredictable, retirement
planning is somewhat not necessary.
In financial aspect, interviewees have clear goal that a secure preparation is
about their personal savings as well as an all-rounded planning on the expenditure to
these savings. They emphasized the expenditure level must be under strict control
after retirement, otherwise it would harm the financial stability for their retirement life.
If they want to improve the reserve of savings, investment is one the common ways to
complete. Most of the interviewees also have had investment experience, yet more
knowledge should be socialized when the stock market risk is at high level so as to
help them manage their risk effectively. Educated public would be capable to
distinguish what kind of financial advice would be best appropriate for their planning
and investment. Besides, interviewees are very alert on their residential stability and
capacity, their goal is simply to be ageing in place. It is consented that if
accommodation has been steadily settled, the retirement goal would be accomplished.
An interviewee highlighted flat maintenance should not be neglected, especially if flat
has been dilapidating, the repair can be very expensive so the flat situation should be
regularly monitored and reviewed.
Another focal aspect is related to health, which has drawn best attention to the
public in recent years. Many interviewees pointed out that they may have different
health risks already because of unhealthy dieting habit, such as dim sum, junk food or
ready-to-eat food etc. for many years. They are almost now cautious on food selection
so they would not have to encounter higher risk on any diseases. Interviewees may
also have a concept that regular medical checkup is helpful for them to monitor the
49
health condition closely; it is crucial to foster a habit to monitor the change in health
status so they could keep well-prepared in case of any incident happened. Most of the
interviewees stressed that many of pre-retirees perhaps are under high risk on health
because working may cause different levels of unknown impairs, so regular checkup
is a compensatory action to bring a healthy condition to their retirement life.
Social participation is also a critical concept that drawing much attention from
interviewees. Most of the interviewees agreed social participation is requisite to
retirement life, as it can help their life become colorful and diversified. Unless they
are financially incapable, they are not interested in working after retirement, instead
of preferring on volunteering, since they have worked for a long time, doing
something different is more attractive. Consequently, interviewees would be more
active on their leisure activities planning. They have already started to think about
what their retirement life looks like at this moment, so as to better arrange their
retirement life. As a new life ever, interviewees are more concerned with the sense of
accomplishment, and whether they could start up to develop a new hobby. They
pointed out that retirement must prepare well on the time management, otherwise the
spared time is only a suffering, and retirement is not an enjoyment instead of torture.
5.3.3 Retirement planning and activities
Need for retirement planning
The purpose of retirement planning is to arrange a better well-being during retirement
life, and it can be also seen as a preparation for retirement. It is believed that everyone
should have their own planning for their retirement life, otherwise the government
may likely not be able to bear the burden of retirement responsibility. Middle-income
group interviewees have no objection that retirement planning is important, it is a kind
of preparatory step to meet any possible challenge of retirement, and generally
speaking most of the interviewees may begin different levels of retirement planning.
Nonetheless, many of them did not think retirement planning can be so-called realistic,
while accidents usually occur unexpectedly; retirement planning is used to undermine
the impacts, and should not be deemed as a prevention to all possible challenges in
retirement life.
To great extent, retirement planning might help retirees secure their life quality,
and the basic need during the retirement life can be protected. Many interviewees
pointed out that it is perfect if everyone could start planning around age 40 but no
later than age 50. An early preparation may enable pre-retirees to arrange their
retirement life effectively, but it is unreasonable to kick off retirement planning at age
30, while it is still far away to retirement age. Basically, being vigilant in peace time
coincides with Chinese tradition, people who could painlessly go through their life are
50
felicific, and so retirement planning may reduce the burden that cause from different
aspects. Retirement planning is critical to protect ourselves, family and society, and
the government may not need to bear extra burden of retirement. Someone who
spends their retirement life subject to condition is absolutely irresponsible.
Retirement planning is also important because it could effectively tackle any
unseen abruptness. Since we are now living in a risk and crisis ridden society,
retirement planning is helpful to facilitate our preparation of retirement, and we would
be more cautious to the risks that may occur in retirement life. It is believed that
retirement planning should be flexible and adjustable so as to help pre-retirees and
retirees arrange their life in better way. Interviewees mostly agreed retirement
planning should adapt to the social and personal changes, also everyone should be
patient to execute their planning. The best practice is everyone should regularly
review their own retirement planning, and make any changes subject to their needs
and goals to be achieved in future life. An interviewee highlighted that routine activity
is a proof of showing retirees are healthily enjoying their retirement life, and
pre-retirees and retirees who lack any retirement planning may bring about the
adaptation problem and may deteriorate their mental health in retirement. Under this
circumstance, retirement planning can be a guiding to help retirees keep active in their
retirement life and avert the unpredictable side-effect emerged.
However, quite a lot of interviewees believed retirement planning is neither
somewhat unnecessary nor inestimable to their future of life. Frankly speaking, life is
erratic and uncertain, sometimes going with the flow is the best way to cope with
retirement, and retirement planning can be unreliable and failed to put into practice.
Some interviewees shared their experiences that it is not feasible to enforce life
consistence with the retirement plan, and retirees should lay down all the burdens to
enjoy their retirement life, as life is definitely unpredictable. Notwithstanding it is
commonly clear that retirement planning is still significant to most of the people,
passive attitude may influence the development of individual mentality and harm the
quality of retirement life, and following the retirement plan can let retirees have
momentum to make a better retirement life. Overall, retirement planning can only be a
reference yet not a must to impose for accomplishment.
Retirement life participation
Middle-income group interviewees have various expectations on retirement life, and
they also believed every expectation is equally important. Interviewees deemed that
the importance of health comes from life sustainability, and it is already good enough
that when they are healthy to walk without disabilities. Some interviewees pointed out
even they are billionaire, while they become bedridden, money in this sense may
51
become useless.
Some interviewees may have more realistic view on retirement life, as lots of
daily stuff in retirement are all related to money, such as rent for accommodation,
catering and transportation etc. Basically, retirement means supported by personal
savings or pension, thus money is more important and is a common concern that
everyone must have to deal with when they are moving to retirement. While retirees
cannot sustain their own retirement, it is difficult to survive in reality and lead a
normal life. Therefore, retirement life brings a kind of realistic perception to some
interviewees.
For some interviewees, they focus more on psychological condition during their
retirement life. Happiness, to great extent, has been mentioned most that it is the key
aspect on retirement life. When retirees are able to live happily and their
psychological status can be more relaxed, at least they would not be anxious so much
as like before while they were working, this is proved helpful to their health. In
interviewees’ view, stable mental condition should be taken into highest consideration,
otherwise interviewees occasionally would feel lost in their retirement life. The
adaptation between full-time work and retirement takes time, and retirees living
without any goal and planning may let them feel frustrated and impact their
self-esteem.
While interviewees are asked about their views on social participation, they are
positive to have different levels of participation. One of the participations is
volunteering, while it shows the best of one's ability. Participants claimed helping the
needy or disadvantaged groups may bring about life satisfaction and can be seen as a
sign of dedication to society. When lifelong learning has been the focal priority of
government to promote active ageing, continuing schooling is another activity that
interviewees would be actively joining in order to pursue and complete their study
goal in a late stage in life. Normally, many interviewees have been contributing
completely during their lifelong career, and sacrificing plenty of dreams or goals to be
unachieved. In other words, retirement life is their last chance to reward their personal
achievement. Some interviewees stressed that if retirees lack social participation, their
retirement life would be very boring, and undermine the meaningfulness and value of
the retirees.
5.3.4 Retirement challenges
Feelings on retirement
Retirement is a necessary stage for everyone. Interviewees’ feeling undoubtedly may
influence how they plan their retirement life, as they would have different
expectations towards retirement, which the planning preparation may be adjusted
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accordingly. Basically, interviewees are not worried on retirement and intend to create
a color and diversified retirement life. They are quite aspirating that how retirement
life should look like because they can more freely arrange their life and activities and
full relaxation is seemed important to them. Still, there are some other feelings and
issues being addressed.
Lots of interviewees have similar views that everyone should take retirement in
stride. Retirement may be deemed as an unstoppable stage of life, and every
pre-retiree should not get worry to a process that is compulsorily experienced.
However, it is hard to imagine how the retirement life would be while they have fully
adapted in full-time working for few decades. Interviewees emphasized that they can
feel relaxed in retirement life at the moment because they are still pre-retirees, but
their thoughts can be altered once they are retirees, retirement in fact is still unknown
to them. An interviewee hence further made clear that when retirement planning is
on-going, it is unnecessary to worry about because everything has got well-prepared.
Retirement age and extension has been addressed by interviewees while
expressing their feelings towards retirement. The present practice of setting the age at
60 is untimely, and it is better if pre-retirees are allowed to work several years more to
secure more saving for their life after retirement. Interviewees are almost welcomed
of the promotion of optional retirement in Hong Kong so as to provide flexibility on
retirement arrangement. Most of the interviewees said when being granted extension
to their working life, they would urge for more flexible working mode and likely
accept a lower pay. Some interviewees commented that retirement age extension is
reasonable; the working capacity of new recruits is retrogressive, which provides a
strong justification to extend working life of older employees to train-up the new
recruits to complete a well succession. Retirement age extension is a win-win
situation among older employees, green recruits and even employers.
Gender difference towards retirement has been also raised for deep discussion.
Many female interviewees indicated retirement is a psychological burden for males,
not only because males act the dominated role in the family, but also they have higher
working responsibility in which retirement seems reminding them the sunset of life is
coming. As a result, it is understood that the adaptive transition from work to
retirement may take longer time for male retirees, otherwise they may have conflicted
with the lifestyles. An interviewee suggested that succession plan should be started
two years before of the retirement age, which would be helpful for pre-retirees to
gradually adjust their psychological state to realize how to get well-prepared for
retirement. They idealized that the retirement life should be full of relaxation, and
pressure should no longer be affecting the lifestyle. It is an extreme torture while
retirees have to be frequently hospitalized and bedridden in anytime of retirement life.
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Difficulties in retirement planning
Although many middle-income group interviewees understood that retirement
planning is a prime step on personal development, they have shared a plenty of
difficulties which may restrict their success of planning. According to the
interviewees, time is mentioned frequently to be an obstruction of implementing the
retirement planning. As they are very busy in their daily life with long hour work,
they have no way out to setup a retirement planning for themselves. They only
deemed taking out insurances or arranging personal savings seem already equivalent
to retirement planning.
From interviewees’ opinion, they are already fully occupied by full-time work, it
is too demanding for them to think about retirement planning. If they have leisure
time, they would intend to completely take a rest more likely instead. Since their
diligent work aims at providing a secure retirement life, it is absolute a dilemma for
them that work life as well as retirement planning are no longer able in parallel
process. An interviewee pointed out that squeezing time to prepare health, life security
and other aspects for retirement is a challenging task. It is understandable that
retirement planning to great extent might not be able to apply in every pre-retiree,
even some interviewees objected this is just an excuse of avoiding undertaking
personal responsibility to their retirement planning.
A Chinese idiom “No one knows what would be going on tomorrow” can exactly
describe another concern of retirement planning. Assuming someone likes freely
enjoying the retirement life, yet there can be several limitations that prohibiting the
retirement plan comes true, such as family burden or health condition etc. In this case,
retirement planning is therefore similar to lifelong planning that is only a reference
but not a guarantee. Interviewees who equipped with this mindset are more willing to
accept circumstances with good will. An interviewee further stressed while they have
not met the retirement age yet, it is truly difficult to ask them to have a well plan on
retirement life.
It is no doubt that retirement is a path that everyone must have to follow, but it
does not signify pre-retirees are equal to have same retirement preparation planning
support from employers. For instance, interviewees think when civil servants are
benefiting from the pension system and taking more advantages to their retirement
planning, it is not fair that general public is excluded. In general, private sector in
Hong Kong has no strong tradition to help employees arrange any retirement
protection measure, and retirement definitely is all about employees’ responsibility.
Under this circumstance, not every pre-retiree may be feasible to have retirement
planning. Retirement planning most greatly depends on individual intention as well as
personal perception – whether pre-retirees may think retirement should have an
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all-rounded planning, or letting everything move on naturally.
5.4 High salary group
High-income group interviewees are less concerned on retirement life they have. They
usually have a plan on what they want to or have to do for retirement. Most of them
identified social participation as the most important retirement goal, in order to make
retirement life more diversified.
5.4.1 Perception of retirement
Importance of aspects in retirement
Health aspect is one of the most important elements in retirement; interviewees
indicated that health-related expenditure would be increased with age, as elderly
usually have higher risks in suffering chronic diseases, which may affect mobility.
Some interviewees mentioned that health-related expenditure is common financial
burden among elderly, and many retirees also have financial burden and concerns on
general expenses and basic living costs. In residential aspect, many interviewees
showed concerns on housing issues, and most of them agreed on the importance of
living space after retirement. Social relationship in later life is relatively important as
well, and it is necessary to fulfill personal happiness and satisfaction. Psychological
needs are other important elements in retirement, and interviewees normally have
their own preparation and decision on what retirement life they would like to have.
Expectation on retirement
To achieve preferable retirement life, high-income group interviewees mentioned that
they should have their own financial planning for retirement life, and they would
never have ideal retirement life without adequate financial support. One of
interviewees further emphasized that whom would like to retire should have
well-planned financial plan, because they have to concern on cost of daily livings,
expenditure on health expenses, and taking care of their old parents after retirement.
Some interviewees indicated that stable financial status is relatively important for
whom would like to help their grown-up children to buy private housing or pay for
their children’s wedding, in order to reduce the living pressure on their children as
well as to encourage them to born a child. Some interviewees pointed out that if their
grown-up children do not need their financial support, they would prefer retiring at
the age of 60. Furthermore, some interviewees mentioned that although old age
allowance can provide basic support to elderly, it is necessary to educate the public on
the importance of taking care of old parents.
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5.4.2 Retirement goals
Ranking of different retirement goals
High-income group interviewees agreed on the importance of setting retirement goals,
as their objective of life would be different before and after retirement. Most
interviewees rank social participation as the most important retirement goal, and the
next is family relationship. Others mentioned significant retirement goals include
health, financial stability, leisure activities and housing aspects. For social
participation, some interviewees showed passions in voluntary work, developing
social enterprises, and knowledge and experience transferring activities to young
generations. With stable and sufficient financial status as well as healthy body, some
interviewees would prefer travelling with spouses.
Clarity and existence of retirement goals
High-income group interviewees would spend more time on health related aspect.
Besides, most interviewees indicated importance of well financial plan and personal
savings for retirement. Their expenditure patterns would be changed with age, and
they would consider about the necessity rather than desire to buy. Regarding social
participation, many interviewees choose travelling as their preferable leisure activities
after retirement. With more leisure time in retirement life, retirees can go wherever
they want subject to their financial status, and most of the interviewees prefer
travelling with their spouses or friends. Some interviewees would also join regular
sport activities, such as hiking or cycling, and some of them even want to join cycling
tourism in Taiwan or China. They thought that both leisure and sport activities are
necessary to maintain health status as well as a healthy retirement life. But some
interviewees would prefer more passive activities, such as calligraphy and learning a
music instrument. Furthermore, many interviewees would like to take paid or
non-paid work even they have retired, and time spending on paid or non-paid work
would be decreased with age. Most interviewees showed their passions on non-paid
work and voluntary activities such as large scale charities, because they do not want
to lose connections with friends and colleagues. In addition, some interviewees would
be willing to take care of grandchildren when they have free time and are physically
healthy after retirement; however, they do not prefer if their children pay them for
such care-taking activities, as it is more likely an employment relationship.
Confidence in achieving retirement goals
The wealthier the interviewees are, the less concern on retirement life they have. In
addition, those who are physically healthy would consider joining more voluntary
activities, maintaining networks with friends and the community, and keeping
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themselves socially participated after retirement.
5.4.3 Retirement planning and activities
Awareness, skills and knowledge to plan for retirement
High-income group interviewees usually have a plan or a list of what they want to or
have to do for retirement. They pay more attention to personal health status and have
medical check regularly to monitor health status, in order to ensure a healthy status in
retirement life. Some interviewees would join more health talk and pay more attention
to health information, improve healthy living and eating habits, and participate more
in leisure and physical activities.
People nowadays can live longer than before, and retirees normally would have
around 30 years retirement life. Interviewees indicated that it is necessary to have a
well-planned financial planning to ensure sufficient savings for retirement life, and
such financial planning should be conducted as earlier as possible. The ideal situation
is that the amount of savings can be sufficient enough or can be used in further
investment. Some interviewees mentioned that investment is relatively important for
retirees to continue maintain financial stability, and investment should be conservative
and low risk (e.g. consider low-risks stocks that usually have high interest rate), as
they do not have stable and regular income after retirement. It is also essential to learn
different types of investment risk control and management approach, for example,
diversification of investment and avoiding over-reliance on specific stocks or
products.
Regarding residential matter, high-income group interviewees indicated that if
the amount of retirement benefit is not sufficient to support wealth retirement life,
they would make certain residential arrangement such as moving to a smaller flat.
Interviewees also agreed on the difficulties for the new generation in buying private
owned housing, and many of them as parents are willing to help their children to have
own housing for the marriage.
In terms of social participation, many high-income group interviewees would
travel to different places when they retired, and most of them prefer travelling to safe
tourist destination. Interviewees mentioned that before fully retired, it is necessary to
have well planning for retirement in order to enhance a smooth transition from
working life to retirement, otherwise, it would be difficult to adapt the life without
work. Some interviewees suggested participating more in voluntary work to enlarge
social network and thus to have more choice of leisure activities after retirement.
They highly recommended retirees to enhance their social networks and meet more
new friends, as wider social network may make retirement life more colorful and
fruitful. Some interviewees also emphasized the importance of family relationship,
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particularly the way to maintain well relationship with spouse after retirement. Some
interviewees indicated that retirees have to understand their spouses more through
good communication, and in addition, it would be better to pursue common interests
or leisure activities.
Learning is importance and essential in any stage, and high-income group
interviewees indicated that retirement planning is one of the learning processes. Some
interviewees would read retirement planning books or online retirement-related
information, and join retirement groups or activities conducted by non-governmental
organizations (NGOs) or other organizations, to learn about retirement planning from
other group-mates. Furthermore, interviewees indicated that they can clearly estimate
their personal financial and health status for retirement and can make suitable and
feasible planning for their retirement life at the moment they decide to retire.
Planned activities after retirement
One of the essential and important retirement activities for high-income group
interviewees is to have a personal financial plan, as the amount of MPF is not enough
to support long retirement life. Interviewees recommended that there is a need to
review and adjust administration fee as well as the rate of contribution of the MPF
scheme. Some interviewees indicated it is common for older employees to extend
their working life nowadays. They suggested that employers can consider job sharing,
as this post-retirement work mode is efficient to retain skills and experiences of older
employees, as well as to enhance knowledge transfer to junior staff. For example,
university professor can extend retirement to take up less research activities, and
spend more time on being a mentor or supervisor for young academics. Many
high-income group interviewees mentioned that they would participate in non-paid
work or voluntary work in social enterprises after retirement, as they enjoy using their
own experiences to help others. For the health aspect, interviewees pointed out that it
is necessary to participate in leisure and sport activities such as Tai Ji, aerobic
exercises, as well as playing tennis and football regularly in order to maintain healthy
lifestyle. In addition, some interviewees prefer taking some time to accompany and
take care of family members after retirement.
Need for retirement planning
Retirement planning is also relatively important and necessary undoubtedly for
high-income group interviewees to adapt to a new way of life after retirement, and
pre-retirement preparation especially on health, financial and social participation
aspects is deemed necessary. Ideally, retirement planning should be conducted as
earlier as possible; however, young or middle- aged people are seldom planning for
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their retirement as they just concentrate on work at that life stage.
Most reasonable people would contribute on savings earlier. One high-income
group interviewee mentioned that financial planning should be started many years
before retirement, and pre-retirees have to estimate how much they would spend in
retirement and how their retirement life is, in order to determine the risk tolerance
level and objective in financial planning. Certainly, there are also other opinions
towards needs for retirement planning. Some interviewees thought that the concept of
retirement planning is created by financial planning companies, and is not realistic.
Some interviewees who are employers and carrying on their own business, usually
have retirement plans, estimate their financial needs in retirement and know what to
do in retirement. They believed that only employees would have the need for
retirement planning, and only large scale organization would offer retirement plans for
their employees as incentives. Interviewees also mentioned that phased retirement is
one of their ideal solutions for adapting retirement life, for example, employees can
switch from full-time to part-time employment, or fully retire whenever they want.
5.4.4 Retirement challenges
For high-income group interviewees, retirement refers to cessation of full-time work
and most of them have planning on what they would do in retirement life. Many
interviewees tend to feel happy when talking about retirement and are looking
forward to enjoy their retirement life, as they would not need to work harder for the
achievement at work and would have more free time to do what they want. They
estimated that such honeymoon period of retirement would only last for half year, and
then they would feel bored and lonely. Thus, most of the interviewees agreed that they
need to have well time management and a better plan to use their leisure time after
retirement. However, some interviewees mentioned that there are many uncertainties
that could not be predicted such as suddenly struck by health problems, and another
critical retirement worries include losing the social network and friends made at work
because of the transition from working life to retirement.
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6. Discussion
6.1 Summary of findings
Our quantitative and qualitative findings provided a picture and trend about how the
three salary band pre-retirees think about retirement and retirement planning. Though
retirement is a compulsory process for everyone, it does not mean planning is a must.
Retirement, to a great extent, brings mixed feeling to pre-retirees. Retirement
consisting of uncertainties may impact their feeling of retirement, as well as their
planning motivation. When pre-retirees were asked about their worry on retirement,
three salary groups have different perspectives. High salary group perceived physical
and psychological health to be their main concern, middle salary group focused more
on the residency of elderly homes, and low salary group indicated economic expenses
and living environments to be their main focus on their retirement life.
Besides, all three salary brand pre-retirees have stated their retirement goals and
confidence to accomplish the goals. However, the ranking of retirement goals has an
apparent distinction. High salary group indicated social participation and social and
family relationship to be the top-priority retirement goals, middle salary group
identified health and residency to be the most urging for, and low salary group ranked
finance and health. However, there is no correlation between the setup of retirement
goals and confidence to accomplish of retirement goals. Middle salary group
pre-retirees are mostly confident on psychological and social participation, low salary
group pre-retirees capture mainly on financial capacity and stability, and high salary
group pre-retirees possess the highest confidence level that they could accomplish all
the retirement goals that have been planned.
Regarding retirement planning needs, three salary groups have similar and varied
opinions. Basically, many pre-retirees shared same ideas that there is a strong need to
prepare a retirement planning, and it is best whether retirement planning could be
universally promoted in a society. Yet, there are some views that retirement planning
is no longer necessary in terms of traditional Chinese thoughts, and it is unintentional
as future is unpredictable. Even retirement planning aimed at preparing the retirement
life, it is an unsure guarantee to have an ideal retirement life. It is only used to
facilitate a betterment of retirement life, and pre-retirees should fine-tune the planning
regularly to get realistic as well as prevent disappointment.
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The accomplishment intention of retirement planning among three salary groups is
different. High salary group engaged more cost resources to retirement planning, so
they would be more secure in all aspects, including health, finance, residency, social
network and family relationship as well as social participation on leisure participation
and continuing work. Low salary group, however, lacks confidence on making
financial resources available and would ask for more government allowance. For
middle salary group pre-retirees, they have strong intention and confidence on
participating leisure activities in retirement life. When pre-retirees were asked about
their self-efficacy on retirement planning, low salary group did not have confidence
due to the toughness of the daily life expenses, but middle and high salary groups
thought that finance plus residency and leisure participation would be their perceived
intention respectively. The difference shows that income could be a determinant factor
to influence the planning content, as well as planning intention.
Also, three salary group pre-retirees showed a comparison of retirement planning
actions. High salary group concentrates more on financial management, regular
checkup and setting up healthy habits, as well as participating leisure activities.
Middle salary group becomes more sensitive on arranging retirement life, taking
advice from friends and family seriously, and seeking for learning opportunities while
they are confident to be competent of learning new knowledge. Low salary group
pre-retirees, apparently, intend to establish the stronger safeguard in live maintenance
for themselves, hence their actions would pay much attention on the opportunity of
post-retirement employment. It is also raised by middle and high salary pre-retirees
that, post-retirement work may bring along a positive impact to the society, and
retirement age extension could let them keep active to the society, indicating retirees
are still dedicative and their social networking would not be given up.
Furthermore, both middle and high salary groups mentioned that retirement planning
could not be begun too early, while imponderability is very common nowadays, yet
low salary group had a practical perspective and indicated that financial and health
condition is somewhat hard to be well-planned in advance. A common consensus has
been reached on the ideal age for retirement planning among three salary groups. The
recommended age for starting a long-term and effective retirement planning should be
around 40 but no later than 50.
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6.2 Localized retirement planning framework
A localized framework for retirement planning in Hong Kong was proposed and
constructed based on the summarized ideas and opinions from the focus group
interviews with soon-to-be retired employees from low, middle, and high salary
groups, and expert in-depth interview was conducted for cross-verification on the
proposed retirement planning framework. Here, the retirement planning framework
was built with reference to the three pillars of health, security and participation of the
World Health Organization’s Active Ageing framework and Fishbein & Ajzen
(2010)’s Reasoned Action Approach (RAA). The framework consisted of two main
parts: determinants of the intention of retirement planning and actual performed
retirement planning actions.
6.2.1 Intention of retirement planning
The intentions of retirement planning in the localized framework were determined by
both non-financial and financial factors. From the perspectives of the three income
groups of pre-retirees, expectations, goal clarity, attitude to planning as well as
awareness, knowledge and skills to plan lied on the non-financial aspects; while cost
and resources was the financial determinant. Figure 2 shows the proposed retirement
planning framework on intention for the low, middle, and high income groups.
Pre-retirees from all three income groups expected the Hong Kong government has
the responsibility to take care well-being of all local senior citizens in the old age. As
the return performance of Mandatory Provident Fund (MPF) has not been satisfactory,
which is a money-losing business, it could not secure the retirees to lead a decent life
in old age. A universal retirement protection (URP) or old-age allowance in form of a
monthly annuity is expected. The high income group believed the government should
be promoting positive images of the elders as they have been very contributive to the
economy and they are still productive after retirement. The low income group
pre-retirees thought that the government could delay the retirement age so they can
utilize their abilities to earn more income and to contribute to the society. Additionally,
pre-retirees from low income group looked ahead to more retirement planning
education led by the government as they believed that retirement planning is
necessary and has to be carried out in the age of 30s. Other than expectations on the
government, the low-income group wished their employers could provide more
on-job welfare for their future use. The middle and the high salary group pre-retirees
themselves expected to assist their children with their savings, such as to support them
with a private housing when the property price soars, while trying to keep a stable
financial status for themselves.
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Regarding the retirement goal clarity, all pre-retirees are very certain that health is
vital in retirement life, as getting sick brings burdens, on both health and finance
aspects, to themselves and their family members. It is necessary to maintain a healthy
diet and to exercise regularly. From the monetary aspect, the high income group
believed they have to plan, save and invest. The middle and the high salary band
pre-retirees found that they have to spend wisely and carefully, by only buying daily
necessities; whereas the low income group prefers buying value-adding assets to
maintain their financial stability. The middle group reflected that stable residency is
essential in retirement life as house moving is too bothersome and costly. For
engaging in social life after retirement, all three income groups are clear that they
would join voluntary work. The high income group enjoys leisure activities such as
cycling and travelling, as well as to learn something new. They also found family
relationship important and so they will spend more time with family members. The
low income pre-retirees similarly wished to learn something new by attending interest
class and hoped to get themselves very busy and active in the old age. However, they
are reluctant to take care of grandchildren because it is too tough.
In planning retirement, the awareness, knowledge, skills and attitude to plan would
influence behavior of pre-retirees after retirement. All three income groups of
pre-retirees found themselves falling short of knowledge and capacities in financial
planning and investment and need to learn more about that after retirement. They
were all aware the importance of staying healthy too. The low-income group
struggled to make ends meet and hence not much could be done right now. Even there
are a lot of plans suggested by the pre-retirees, they still found the future would be too
fluctuating with lots of uncertainties, especially for economic situations. It is
unrealistic to plan with the unexpected circumstances in future, as expressed by the
high income group pre-retirees, and they believed retirement planning is only
applicable to employees in large-scale companies in which employers would provide
retirement planning schemes for their employees.
On the cost and resources perspective in planning for retirement, the pre-retirees had
different sources in financing their retirement. All three income groups of pre-retirees
are looking for more return from the MPF as its return is too slim. The high and
middle income groups of pre-retirees hoped they could be independent from
children’s support and sustain their life on their own, while the low income ones
chose to rely more on government welfare. The high income group had more
resources that generate income such as investments and properties for lease, whereas
the less privileged group was worried about their pension being eroded by inflation.
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Figure 2. Proposed localized retirement planning framework: Part one – intention of retirement planning for three income groups
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6.2.2 Retirement planning behaviors
The second part of the localized retirement planning framework was about actual
performed retirement planning activities generalized with the low, middle and high
income groups of pre-retirees. Retirement planning activities in the framework were
categorized based on the three pillars of active ageing: health, security and
participation. Figure 3 illustrates the proposed retirement planning framework on
behaviors for the three income groups of pre-retirees.
The pre-retirees from low, middle and high income groups shared some similar
thoughts on preparing a healthier well-being after retirement. They all believed
frequent exercise, a controlled diet with little junk food intake, weight control, as well
as regular body checks are necessary in maintaining a healthy body. Other than
physical health, the pre-retirees paid attention to psychological and mental health. The
low and middle income groups identified the importance of keeping happy in
achieving a healthy retirement life. The middle income group of pre-retirees believed
managing their time well, like starting off a new hobby so as to seek some
accomplishments in life is necessary, or life would be in distress.
On security aspect, all three income groups of pre-retirees are planning for the future
of their children, like saving money or reserving a property for them and their
retirement plans are influenced by the financial capacities of their children. The low
income group had to be very thrifty on spending their money and tried to avoid any
unnecessary spending and support from children after retirement. There is an
increasing situation that property is essential for retirement. Moving to a smaller flat
or to collected rent from leasing property could be sources of income after retirement
for the high and middle income groups. Other than the deriving income from property
tendency, investment with their pensions and savings could help generate more money.
The three groups had different perceptions on investment: the low income group
opted for high-risk investment. The middle and high income groups tried to avoid
risky investment and be conservative in using their pensions. For the high income
pre-retirees, through financial planning and diversification of investments, they
expected to generate a stable growth of income to sustain a secured retirement life.
Hence they planned to learn investment and risk management. Besides, all three
income groups of pre-retirees scheduled to engage in post-retirement work, which can
be both a source of income and a way to participate in the community. The
pre-retirees had diverse ideas in engaging in work. Some preferred starting a new
career after retirement while some chose job succession to stay with the profession.
Most of them would only work on a part-time job or on a flexi-basis.
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Other than paid jobs, all three income groups of pre-retirees chose to engage in
volunteer work after retirement as to maintain connection between friends and the
community. The pre-retirees would also learn something new as a way to participate
in society. Some low income pre-retirees had little chance to study in the young age
and wished to attend school after retirement. The others wanted to attend interest class
as to develop new hobbies. In addition, the high-income group of pre-retirees
expressed their wish in spending more time with their family members as they were
too busy during the working days. Pre-retirees from all three income groups found
social participation very important in retirement life.
Retirement planning is a green concept and a new practice of retirement protection in
Hong Kong. The following issues should be noted while adopting the proposed
localized retirement planning framework as a reference for retirement preparation
towards financial and non-financial aspects in later stage of life.

Issue 1: Everyone has different concerns and considerations of retirement.
Retirement planning should not have universal guidelines and every individual
should only regard the proposed framework as a referential model.

Issue 2: When pre-retirees make reference to the proposed framework to kick off
their retirement planning, they are encouraged to flexibly arrange their retirement
subject to their personal interests, preferences and needs. In case they have
identified a number of disagreements on our proposed framework, they could
amend the framework accordingly to let the retirement planning meet their
ultimate goals and needs.

Issue 3: It is better if a comprehensive retirement planning framework could be
made for showing what kind of factors and elements would be in relation to
retirement to let people consider and decide how they should plan for their
retirement. All possible retirement factors should have been listed out in the
proposed framework based on the low, middle, and high salary brand pre-retirees
interviewed in this study. The proposed framework does have certain constraints
and deficiencies.

Issue 4: There is a strong need to conduct retirement planning earlier possible in
order to meet the specific needs of old-age. The pre-retirees interviewed
emphasized that their thoughts can be altered from time to time between this
planning period and the day of retirement. Their retirement planning should be
reviewed and updated regularly subject to the personal, social and environmental
changes. In addition, the criteria of retirement planning intention and retirement
planning behaviors within the proposed framework might need to be revised on a
regular basis to keep track of changes in society.
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
Issue 5: The proposed framework was built with consideration of different income
groups of pre-retirees. Other socio-economic factors of pre-retirees such as
education level and economic activity had not been accounted for. Gender
difference towards retirement has not been addressed in the proposed framework
as well. The pre-retirees interviewed in this study mentioned that retirement would
cause great psychological burden for males as compared with females. Males act
as the dominant role in the family and have sense of high responsibility to work,
in which retirement seems reminding them the change of their family role and the
sunset of life. The adaptive transition from work to retirement may take longer
time for male retirees.
6.2.3 Expert review on the framework
Totally six experts (3 males and 3 females) including employer, human resources
administrator, chairman of a policy research centre, chief executive of social service,
and chairman of staff association from business and non-business organizations had
been interviewed on the proposed localized retirement planning framework for
soon-to-be retired employees from low, middle and high salary groups in April 2015.
Experts from different backgrounds are all affirmative that such framework should be
formed. The framework is not only essential for promoting active ageing, but also
showing a good reference on how retirement should be planned, and grasping
pre-retirees to be more focusing on non-financial aspects of health and social
participation during retirement.
Basically, experts have positive comments that the retirement planning framework is
clearly presented and agreed that some issues should be noted while adopting the
framework for retirement preparation. It is becoming easy to identify what kind of
retirement plan can be made with reference to the framework. The framework is
already overarching and covers all necessary elements on what general public actually
think about retirement planning, and the elements are come up with all-rounded
aspects regarding retirement (e.g. personal attitude, knowledge and skills, as well as
cost and resources). One of the experts attempted to apply the framework for her own
future retirement preparation and she found that the framework could meet her will
about retirement and the resulted retirement plan is quite similar with her imagination
and expectation on how an ideal retirement life should be look like. The framework
can be seen as a theoretically well-founded and practically useful paradigm for the
general public to prepare their retirement, yet subject to changes in view of particular
personal preferences and requirements of pre-retirees towards retirement life.
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Retirement
planning
activities
Health
High
Middle
Social
participation
Security
Low
High
Middle
Low
High
Middle
Low
Do exercise
Do exercise
Do Exercise
Post-retirement
work
Post-retirement
work
Post retirement
work
Voluntary Work
Voluntary Work
Voluntary Work
Controlled diet
Avoid junk food
Controlled diet
Conservative
investment
Avoid risky
investment
High-risk
Investment
Post-retirement
work
Post-retirement
work
Post-retirement
work
Regular Body
Check
Regular Body
Check
Regular Body
check
Buy house for
children
Financial
succession
Spending
thriftly
Lifelong
learning
Lifelong
learning
Lifelong
learning
Good time
management
Weight Control
Learn financial
management
Lease property
Adjust
psychological
conditions
Keep happy
Conduct
financial
Planning
Reserve
property for
children
Keep happy
Spend more
time with family
Move to a
smaller flat
Develop a new
hobby
Figure 3. Proposed localized retirement planning framework: Part two - retirement planning beahavior of three income groups
68
An expert mentioned that the framework is rational and reasonable, as well as
represents all the mainstream perception on their own retirement planning. The
intention of retirement planning among the three salary groups are not high enough, it
is pretty sure that the proposed localized retirement planning framework seems useful
for pre-retirees to prepare and plan for their well-rounded retirement life. Another
expert further indicated that the framework is not too complicated and can be
understood by general readers, and its focus of portraying a picture of retirement
preparation is clearly stood out. The framework structure should be as simple and
straightforward as possible for utilizing as a retirement planning tool, otherwise
readability and clarity would be undermined, and the presentation of the proposed
localized retirement planning framework here is precise and well-structured enough.
Additionally, the framework is praised for the way that it is targeted towards not only
financial arrangements but also psychological, physical, materialistic, health and
social aspects in retirement life. To facilitate the prevalence of retirement planning in
Hong Kong, the framework could be released to different stakeholders such as
government, non-governmental organizations or private sectors as a reference and
motivation on provision of retirement planning related programmes and services to
their current employees. Furthermore, one expert mentioned that the framework is
comprehensive enough, but retirement planning intention and activities within the
proposed framework might be adjusted from time to time subject to the personal,
social or environmental changes, and the framework should be tried to link up with
current and prospective retirement policy implementation. Most importantly, everyone
should be encouraged to have retirement planning soonest possible, and thus
emerging a framework of retirement planning is definitely a stepping stone of
socializing the concept of retirement preparation and active ageing to the society and
making earlier retirement planning become a trend in the future.
6.3 Policy implications and recommendations
This research study constructed a localized retirement planning framework for
soon-to-be retired individuals from low, middle and high salary groups, demonstrating
the current situation on the intention and behaviors of retirement preparation. Several
policy implications and recommendations are raised to link up with the proposed
retirement planning framework, so as for government and policy makers to create
supportive active ageing environment in terms of the three pillars: security, health and
social participation.
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6.3.1 Reforms on retirement protection schemes
Currently, retirement benefits and security are mainly covered by the Mandatory
Provident Fund (MPF). However, most of the interviewees found the return of MPF
unsatisfactory. Low salary group would like all their MPF contribution could return to
their own pocket while the return is always deficit, and middle and high salary groups
feel the contribution level is not good enough than their personal financial investment.
The interviewees were also not too happy with the arrangement that the MPF can only
be withdrawn at the age of 65 in a lump sum form. The administration charges are
also unreasonably costly, together with the disappointing returns of the funds, some
employees suffer losses with MPF. Therefore, various modes of retrieving the MPF
should be provided to the retirees, like in a form of annuity or lump sum, as well as
withdrawing the fund after retirement, regardless of the age.
The performance of MPF has not been satisfactory throughout the years, and the sum
from the MPF is far too small for decades of retirement life, raising interviewees’
concerns on the Universal Retirement Protection (URP) Scheme which is a heated
debate in society today. Most of the interviewees hoped to have monthly annuity for
all elder residents in Hong Kong under the scheme, for instance, an approximate
amount of $3,000, for sustaining a basic living while providing a strong protection on
elders in leading a dignified and decent life. Meanwhile, the scheme can be acted as
an acknowledgement of the effort paid by the elders in the past in contributing to the
society and to ensure every elder is secured of a decent retirement protection. The
scheme is regarded as a basic protection that should not be a burden for taxpayers as it
is universal for all citizens, similar to 12-year compulsory free education. The
government should actively consider the details in implementing URP Scheme in
securing a humanistic and reasonable retirement life for all citizens.
The “Three Pillars of Old Age Protection” suggested by the World Bank in year 1994
are a publicly managed, tax-financed social safety net, a mandatory privately
managed, fully funded contribution scheme; and voluntary personal savings and
insurance. In 2005, the World Bank proposed two extra pillars, which added other
forms of protection, including: non-contributory social pension and assistance for
alleviating poverty to provide a minimal level of protection for the elderly; and
informal support (e.g. family support), other formal social programmes (e.g. health
care), and other individual financial assets (e.g. home ownership) (World Bank, 2009).
The interviewees wished the government could provide a stronger support over the
non-contributory social pension and assistance to elderly. Currently, the government’s
social security assistance is not universally available. The Old Age Living Allowance
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(OALA) provides assistance to elders who are in need of financial support with a
means test. The Comprehensive Social Security Allowance (CSSA) gave a publicly
managed, tax-financed social safety net which provides minimal security allowances
to the elders. There are points of view that the means tests are too complicated for the
old people and they generate negative labelling effects as well as moral issues over
asset transfer.
6.3.2 Reverse Mortgage Challenges
In Hong Kong, the Reverse Mortgage Programme has been launched in 2011 and run
by the Hong Kong Mortgage Corporation Limited (HKMC) to encourage banks to
offer reverse mortgage loans to people aged 55 or above. It allows elderly
homeowners using their living flat as security to borrow from banks a fixed amount
(typically on a monthly basis) to meet their daily expenses, while staying in their
living flat until they pass away. In general, the borrower does not need to repay the
reverse mortgage loan during his lifetime, unless the reverse mortgage loan is
terminated under certain specified circumstances. Reverse mortgages are offered in
many jurisdictions such as the United States, the United Kingdom, Australia, and New
Zealand etc. Elderly mainly in Hong Kong has owned private permanent housing and
living in domestic household (Hong Kong SAR Government, 2013). However, the
prevalence of reverse mortgage is low and a number of challenges should be taken
notice of when the programme would be a long-term policy strategy of securing life
expenses of the old citizens. Reverse mortgage is crashed with the Chinese traditional
values and is a new concept for the elderly, which becomes one of the substantial
obstacles on the promotion of the programme.
Wong et al. (2012) revealed that the Reverse Mortgage Programme is not attractive to
senior citizens to join, because many of them may still want to bequeath their living
flat to their children, the payout of reverse mortgage is not high, as well as the service
charges are complex and interest rate is expensive. The study also justified
respondents with no children are more acceptable to the programme than those with
children, but the motivation of joining the programme is still below average. There
are no doubts that cultural factor is the core cause affecting the prevalence of the
programme. Since senior citizens’ understanding and confidence on the programme
are both not good enough, the government should take more initiatives to gain public
supports to the programme. For example, the regulation and supervision to the
programme should be more stringent while general public has relatively low
confidence to monetary agency after global financial tsunami, the low credibility of
monetary agency may make elderly in query to their reasonable valuation of the
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property. Additionally, there is no easy way to attract bank’s participation in the
programme, as participating banks may have to encounter financial and reputation
risk in the programme and may not have great returns. In this sense, the government is
strongly suggested to work with Hong Kong Monetary Authority to concretize the
roles of banks, while the roles of banks to property seller or developer would bring a
certain difficulties in implementation of the programme, the management of the
programme should thus be carefully reviewed. The government should vigorously
encourage the banks to adopt the concept of Corporate Social Responsibility (CSR),
so the banks would regard the programme as a contribution to society and corporate
image instead of a business, and would look more deeply into how to integrate the
programme into a service package or hybrid basis.
6.3.3 Public education and encouragement on retirement financial planning and
investment
The pre-retirees interviewed admitted that they have inadequate knowledge in
investment and financial planning for retirement. They fell into a dilemma that they
would lose their pension either by investing riskily or being eroded by inflation if the
pension is left untouched. Therefore, education on pre-retirees on conducting
appropriate investment is in vital importance in leaving enough money for the
retirement years.
The Hong Kong Investor Education Centre (IEC), supported by the Office of the
Commissioner of Insurance, Securities and Futures Commission, Hong Kong
Monetary Authority and Mandatory Provident Fund Schemes Authority, has been
dedicated to improving financial literacy of general public in Hong Kong in skills and
knowledge in making informed financial choices with their money. It encourages the
public to start planning at a younger age. The interviewees found that planning and
saving earlier help secure an adequate retirement life. In enhancing the awareness and
equipping knowledge in financial planning for the pre-retirees, it is expected to reduce
the possibility of getting despair economically in the last years in life, as well as to
avoid falling into the safety nets. IEC encourages the public to seek help and
professional advice in case there are difficulties in managing assets and pensions (IEC,
2013).
Retirement financial planning is not currently prevalent in the community in Hong
Kong. The government and society should pay more efforts to increase
understandings and awareness of the general public. As lifelong education has been
one of the main strategies on active ageing, it is effective if more courses related to
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retirement financial planning could be provided, this definitely may help general
public conceptualize and perceive more knowledge about retirement financial
planning.
6.3.4 Improvements on healthcare services and long-term care support
Elders and their caregivers have been in distress while waiting for years on the
Central Waiting List (CWL) for Long-term Care (LTC) services, both residential and
community care services. For residential care service (RCS), there were 4,000-5,000
elder applicants passed away while waiting for the service before year 2010, and the
figure goes up to 5,700 in the year 2013/14 (Audit Commission, 2014). Health
condition for elders with moderate impairment could deteriorate drastically within a
short period of time. This poses huge pressure for the caregivers. The government not
only should start up different kinds of elderly homes as well as community care
facilities, but also should further promote voucher schemes for both residential and
community care to alleviate the urgent needs of the elders. Thus, voucher service
users can choose private care services as according to their needs, and can receive
care service at a faster pace. The schemes can significantly ease the financial and
caring pressure of their caregivers as well.
In addition, even the waiting time for Bought Place Scheme for residential care
services is much shorter than the government funded places, the caregivers are not too
confident with the quality of services of private elderly home. A stricter standard of
service delivered should be set for the private elderly homes to comply, so as to make
the public feel more comfortable to stay in the Bought Places. Besides, most elders
prefer ageing in place, which means to spend their old age at home, rather than elderly
homes. The elders need not adapt to new and strange environment during the old days
and live with their family. This also helps the government save costs for expensive
residential care services. Much more support for the caregivers and the frail elders has
to be provided. Strengthening the community care services, for instance, by extending
the time of services of day care centre, so as the caregivers could take care the elders
after work at home, to minimize the time that the elder is left unattended.
To slow down the pace of deterioration as well as to reduce long-term care and
medical expenditures, the health condition of the mildly impaired elders worth our
concern too. Elderly Health Care Voucher Scheme (EHCV) was launched in year
2009 in promoting provision of primary and preventive care service for the elderly, so
as to reduce the burden to the medical system in a long run. However, most elders
used the vouchers for acute diseases, with less than 9% of the users spend the
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vouchers on preventive cares from year 2009 to 2013 (Audit Commission, 2014).
Therefore, the objectives of ECHV are not very effective. It is suggested that a regular
medical check-up should be provided to all elders in Hong Kong. This is to keep a
close monitor of elders’ physical condition, while treating the illness at an early stage,
before it worsens.
Physical exercises are demonstrated helpful for older people to stay healthy, it is
hence essential to look into how the recent strategies in exercise and fitness could be
expanded and improved. Zhao and Chen (2013) found that the leisure participation
pattern of senior citizens are watching TV, listening to the radio or music etc., and
physical exercises are not at first priority. Particular sports or culture-based exercises
suitable for older people such as Tai Chi or Qi Gong should thus be promoted because
these physical activities could lighten to get suffering from chronic diseases (e.g. heart
failure and diabetes) and develop a healthy lifestyle. It is critical to improve the
understanding of physical exercise and fitness programs from older people, so the
older people would be more willing to take part in doing exercises and increase
enjoyment of exercises as they could meet more new friends, expand their social
network, as well as make their life more fruitful and colourful (Woo et al., 2015).
Deterioration of health is inevitable as we get older. With the ageing population, there
will be larger demand on public healthcare services. Not only the waiting time for
public medical services for the patients will be lengthened, but also the expenditure
spent by the government will be increased in treating ageing-related illness. Patients
often face a dilemma that the long waiting time delays treatments, while they could
not afford private medical treatments. Some interviewees further doubted about the
quality of medical services and urged the government to construct more public
hospitals to mitigate the increasing service burden when ageing problem is predicted
to be a severe challenge. Insufficient medical hospitals and facilities obviously fail to
cope with the increasing service demands and the service quality development might
be still unable to get great improvements, no matter how many numbers of doctors,
nurses and practitioners have been increased. Given that the medical service burden, a
larger amount of vouchers for private healthcare services should be provided for every
aged citizen, so as to reduce the burden of the public healthcare system, and to
alleviate the medical expenses of the patients. Meanwhile, the call for Voluntary
Health Insurance Scheme (VHIS) is a good start to cultivate individuals to take up the
responsibility to be less reliant to public healthcare services as well as part of their
retirement planning, yet it is proposed if it could be changed from voluntary basis to
mandatory basis. It is also emphasized to be the most effective way to let individual
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bear more responsibility safeguarding themselves. In consideration of general public’s
vigilance to insurance protection, further public education and outreach programs are
needed so as to attract individual citizens to have better sense to their retirement life
as well.
6.3.5 Social participation encouragement
Social participation is a key element of promoting active ageing, and can be divided
into three main dimensions: political participation, voluntary work participation as
well as leisure participation. Normally, social participation can help satisfying the
adaption needs of the elderly, gaining fruitful life satisfaction from their daily life, and
making them to contribute to the society and get general respects. In other words,
social participation helps senior citizens keep connection with the community so their
potentials and strengths could be fully performed. It also allows senior citizens to be
empowered from identifying their values to the society, motivates them to dedicate to
the society proactively, as well as builds up a strong sense of belongingness to the
community.
Volunteering, in great extent, is regarded as an altruistic activity to promote goodness
or improve human quality of life, as well as produce a feeling of self-worth and
respect. Voluntary work participation helps elderly keep in touch with different parties
and avoid being isolated from the society, as well as facilitates the promotion of active
ageing in community. For example, according to the interviewees, senior citizens
could formulate an organization to make influence in various aspects of public policy,
to ensure the elderly’s rights and voice to be stressed, and to become a stepping stone
of elderly to engage in political and civic participation. Elderly is also advised to
spend their experiences via teaching and interaction with younger generations, which
not only helps train up the future successor of the society and also promotes
intergenerational harmony in society. Such kinds of continued social participation
could raise and improve the social and political awareness of elderly people in Hong
Kong. Senior citizens are more enthusiastic on volunteering participation nowadays,
and the motive of participation in volunteering may be come from fame, reward and
social network building. Volunteering could disseminate knowledge to beneficiaries
as well as facilitate the community to build up a caring culture and to make Hong
Kong become a worldwide age-friendly city. To strengthen the confidence and skills
of elderly volunteers, there is a continuing need to organize related training and
programmes so as to enhance the quality, effectiveness, and efficiency of their
volunteer service.
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Leisure participation is another common form in retirement life, in which it is the
most relaxed lifestyle for retirees’ enjoyments. With better use of spare time to
participate in leisure activities such as sports, cultural events and lifelong education
activities, older people can have a rewarding retirement life with new defined
meanings. Given that the positive justification of leisure activities, it is recommended
that Hong Kong should make reference to regional counties (e.g. the Goal Plan 21
introduced in Japan – a country in East Asia with fastest growing ageing population)
to make a long term plan on social participation for elderly, in order to formulate
comprehensive policy planning strategies for coping with the ageing challenges in
coming decades, and the plan should be regularly reviewed subject to revision
according to changes in circumstances and society. In addition, the government
should look into the needs and changes of the social participation pattern of elderly,
and provide varieties of activities for elderly and an age-friendly designed leisure
facilities to enhance the quality of life of elderly people.
6.3.6 Lifelong education development and advancement
Lifelong education is emerged in relation to a conception initiated by Peter Laslett
(1989) about a new form of life stages – third age. According to Laslett, third age
means individuals fulfill all their personal goals, dreams and life plans in a new stage
of life after retirement, and individuals should be wealthy and healthy enough as well
as possess the right attitude and strong-mindedness to create their personal
achievements in lifelong stage. As one of the key elements of active ageing, lifelong
education is a part of “basic rights” and includes four objectives: studying happily,
protecting rights of learning, encouraging intergenerational interaction, and respecting
elderly’s rights and autonomies (United Nations, 2008). Lifelong education has been
the main tactic of tackling the impact of ageing in other countries, in order to satisfy
the needs when lifespan is predictably extended. Once lifelong education becomes a
popular leisure participation form, older people would be equipped a healthy and
psychological condition to adapt the retirement life. Lifelong education could also
encourage older people recapture their dedications to society and engage them to
perform a new role in a society, from an active employee to a retiree. Leisure
retirement activities pursuits not only range from casual, fleeting engagements, but
also to more serious lifetime commitments (like continuing learning) that require a
great deal of time, money, and energy (Stebbins, 2001).
Promoting lifelong learning is one of the establishment objectives of Elder Academies
in Hong Kong. The academies are operating under “a network approach” to provide
self-help form of learning programmes, and demonstrate how co-investment and joint
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engagement between the government and different stakeholders in community could
cooperate together to work on in elderly education (Tam, 2011). Even the government
has committed comprehensive policies and provided sufficient supports on elderly
and lifelong education development, there is a need to launch a comprehensive review
and evaluation of Elderly Academies for its implementation for nearly a decade, so as
to determine whether the latest policy of fostering elderly learning could meet the
goal of active ageing. Elderly education development should be constantly reviewed,
so its education quality could be effectively guaranteed while the curriculum and
syllabus design could be up-to-dated, and most importantly older people are
continuing to build up their capacity to compete with the changes in social
development. For long-term development of elderly learning in Hong Kong,
according to the interviewees, it is recommended that family and intergenerational
education, civic education, life planning education, financial planning and investment
education, as well as volunteering education programmes should be integrated. This
not only strengthens the spectrum of elderly education and develops a systematically
completed curriculum for elderly learning, but also advances the elderly education
development to enhance the quality of life for older people and achieve various needs
for active ageing.
6.3.7 Flexi-retirement arrangement
There are numerous factors impacting an employee’s arrangement to retirement, for
instance, health, job nature, financial stability and so on. Therefore, employers and
employees should be given autonomy to design an optimal retirement arrangement.
Retirees with financial needs can work for a longer time. People who need time to
adapt to retirement life can adopt a gradual retirement arrangement by working as
part-time workers before retirement. There are various arrangements that are subject
to the deliberation between employers and employees. For instance, carrying out
advisory or mentor jobs help succession from the precious skills and experiences to
the younger employees. A rigid retirement age should be avoided.
Older employees are invaluable assets and energetic, as well as possess enriching
work experience, knowledge and technical skills, and areas of expertise. But all too
often they are seen as being in poor health and functional capability, dependent, no
longer capable, and resistant to change. Such ageism against older people
undoubtedly increases difficulties in the implementation of flexi-retirement. The
government has given guidelines for employers on anti-age discrimination policies to
refer to, yet it is not effective enough. Legislations should be reviewed with reference
to the current age discrimination cases from local and countries in the region, so as to
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reinforce means to avoid age discrimination in workplace. Through all sorts of
programmes, exhibitions and workshops, the advantages of workplace age diversity
can be promoted, in hope to reduce age discriminations, promote dynamics in
workplace as well as emphasize the status and productivity of older workforce. Some
suggestions raised that the government should take the initiatives to ensure fair
negotiation and discussion on flexi-retirement arrangements between employers and
employees. There is also a need to enhance the employability of older people, for
example, through encouraging life-long learning, improving workplace skills and
strengthening provision of career guidance. Furthermore, the government can
consider provision of Job Seeker Assistance Programme for older people to develop
new career skills and receive job-specific training.
In Hong Kong, workers’ compensation insurance is difficult to provide coverage for
older workers. Interviewees mentioned that employees’ compensation policy are hard
to be taken out as most insurance companies reject to insure elder workers, which
causes the main obstacle of employing elder workers nowadays. The government
should bear more roles and responsibilities to encourage older workers to be covered
by employees’ compensations. For example, the government’s initiatives on pushing
ahead with the insurances protection scope should be carried out, and labour
insurance subsidy might be provided to employers who are willing to recruit older
people, leading to the protection of the older labours could be continuously
safeguarded.
6.3.8 Enforcement of second career after retirement
Second career is also called second act or encore career for retirees with a comfortable
nest egg who simply want to stay active and engaged in community, pursue a
long-deferred dream, or give back to the society and nonprofit sector during their
golden years. In the context of active ageing, second career is one of the best practices
to demonstrate that retirees are dedicative and connective to the community and no
longer burdening of the society. Second career is attractive to retirees because it is not
only a process of self-actualization, but also an awakening and release of dissembled
individual potentials, according to the experts interviewed in this study. In this sense,
second career can bring retirees a compensatory opportunity to achieve their
unfinished goals while they had to make ends meet before, as well as a new direction
of improving their self-esteem and rewarding personal satisfaction.
The concept of second career has great potentials to be developed in Hong Kong. To
utilize effectively the valuable resources of retirees, the government should initiate or
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subsidy social organization to establish a retirees’ second career database which is a
platform for listing out possible types of opportunities for retired people with different
specialties and second career interest areas to carry on their contribution in
community, and for matching suitable retirees in the database with social enterprises
and service organizations in order to fulfill the needs and desires of each other. The
database could therefore enable different parties in the community to have more
interactions, especially motivate retirees keep closed connection with various sectors,
and benefit retirees to spend their knowledge and expertise in terms of their strengths
and excellences. Second career is surely not a commonly socialized concept yet in the
society, and soon-to-be retired individuals and retirees lack enough understanding
towards this totally young concept as well. Hence, the government is recommended to
educate and promote the understandings and contexts of second career as one of the
key elements in active ageing, which could make the concept of second career more
popular in the society, help build a positive image of elderly, and bring retirees a high
quality of life. Moreover, the concept of second career should be put in the curriculum
of lifelong education for pre-retirees to recognize how to plan their second career
earliest possible and to carry out their second career preparation before retirement.
Social entrepreneurship is specifically conceived and structured to drive social change,
and maximizing profits are not prioritized for shareholders instead of exploring
innovative methods for provision of social services to look for both financial and
social returns. Through social entrepreneurship, senior citizens are able to seek for
their second career when it is purposed to non-profit oriented. They can do something
to empower themselves and enhance the social capital capacity in order to reinforce
the community, in which communal ability is the key on articulating with the concept
of age-friendly through the connection with reciprocity (Laverack, 2004). Under this
circumstance, the government is requested in provision of more incentives to private
sectors or social organizations for establishment of social entrepreneurship for retirees,
and taking some successful cases (e.g. GingKoHouse) as a paradigm.
6.3.9 Maturing the scale of silver hair market
Silver hair market is regarded as serving both economic and social functions in
promoting business and innovation, as well as enhancing social inclusion and
integration. The scale of the silver hair market would be over 1.2 billion in the Asia
region by 2050 and expected to hit $3.3 trillion by 2020 (Ageing Asia Pte, 2015). The
brightest prospects for silver hair strategies include healthcare, lifestyle and leisure,
pharmaceuticals, and entertainment, etc. Nevertheless, global attention to the silver
market is just yet given high attention and most of the companies seem unready to
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capitalize on the huge potential of silver market, as incentive to formulate business
strategy targeting the silver segment is unattractive and the present market situation is
more likely to focus on young people (Chui et al., 2011). There is no special market
promotion that aiming at silver hair consumption, and most options are exclusive of
elderly needs. In addition, the substantial constraint of silver hair market development
might be in relation to imperfect retirement protection system, and thus the room for
promoting silver hair market would not be enlarged when senior’s life maintenance is
unsafeguarded. The government should focus on improving the elder well-beings and
reform gradually from now on about the whole retirement protection system, so as to
expedite the consumption and involvement to sliver hair market in future.
The current development on silver hair market fails to meet the needs of “new-retirees”
who are not only urging for ordinary retirement activities, but also a colourful,
meaningful and high quality of retirement life. Under this circumstance, the
government is advised to help reclaim silver market to facilitate the development
progressively. For example, the government may invite private sectors or social
services to cooperate together on silver hair market development and keep monitoring
and strengthening the cooperation move forward smoothly. The government should
largely support research and development (R&D) on accommodating elderly‐specific
goods and services, and publicize up-to-date silver hair market related data for further
research so as to obtain a clear picture on sliver hair market, figure out the market
potential demands, estimate concretely the future trends and needs of elderly, and
formulate silver hair market’s strategic promotion policy.
Silver hair market is still immature and its development is unavoidably falling behind,
probably due to lacking support of professional experience and expertise towards the
market, and the fact that current market divisions have no channels to allow targeted
campaigns directed at silver segment. As a result, the government is suggested to have
overall policy support on silver hair market and setup interdepartmental cooperation
mechanism on silver hair market promotion and development, so the marketing
effectiveness may not be affected under bureaucratism. There is also a need to
examine how cooperation could be worked out among government, commercial
sectors and social services on maturing the scale of silver hair market. Through the
tripartite collaboration and partnership, the silver hair market can be developed
healthily and sustainably, when the three parties could check and balance each other
and the government performs indispensable roles of regulation, monitoring and
provision of support in the development of silver hair market.
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6.3.10 Promoting positive images of the elders
Elderly are always biasedly perceived to be, for example, in poor health and frailty,
dependent, little or no productivity, less adaptable, and resistant to change with
limited potential for learning new ways of doing things. The United Nations has put
strong emphasis on removing negative images of elderly in the last two decades
through appreciating the contribution of older people that are making to their societies,
expressing a firm commitment to accord priority to the development of older people,
taking immediate measures to bring active older people into the economic and social
mainstream, as well as meeting the basic needs and social security of rural and urban
elderly (ESCAP, 1999). In virtue of ageing in rush, the negative images of elderly
would make them magnify their burdens to family and society. Therefore, overcoming
ageing impact should not only concentrate on advancing elder well-beings, but also
facilitate intergenerational solidarity in achieving mutual respects in society. This
would provide solid foundation to help make positive images to elderly, they would
work more with and not against ageing, also add years to life and add life to years.
The concept of intergenerational solidarity should be promoted in community widely,
and especially social service organization could perform the necessary promotion
proactively for enablement.
Family roles are always irreplaceable and caring culture to elders should be always
practicing under traditional Chinese culture. Some senior citizens may deem helping
their children (e.g. reserve property for children and financial succession) to be their
part of retirement planning content. However, interviewees have varied views on
whether taking care of grandchildren may get effect on their well-being and bring
good impact to them. Good family relationship would bring high self-esteem to
elderly (Lou & Tong, 2015), and thus lifelong education should include the
knowledge of maintaining harmonious family relationship in order to enhance
self-confidence for elders and teach them that they are very contributive to their
family as well as society. Through integrating retirement planning into lifelong
education, retirees’ understandings on how to move on and create a fruitful retirement
in relation to family, home, and social factors could be more consolidated. It is known
that Hong Kong general public has even lower sense on retirement planning in the
past, and think that retirement somewhat is unrealistic to think of instead of life
maintenance, this is thus a good timing to promote retirement planning thoroughly in
society.
81
7. Conclusion
Population in Hong Kong has been ageing quickly as the baby-boomers are gradually
reaching the retirement age. However, pre-retirees have little awareness on the
retirement planning. Based on situations in nearby regions, together with quantitative
and qualitative feedbacks from pre-retirees that retirement planning includes
preparation for health, security and social participation to meet needs specific for the
old-age, this research expects to give insights for the government and policy makers
to help implement a comprehensive retirement planning to face challenges ahead in
retirement.
This study constructed a localized retirement planning framework for pre-retirees
from low, middle and high salary bands in Hong Kong, with the three pillars of the
active ageing framework and Fishbein & Ajzen (2010)’s Reasoned Action Approach
(RAA). The pre-retirees may carry out the related retirement planning behavior
whenever they have such intention. They expressed the expectations on the
government and employers, and they have clear retirement goals and awareness that
healthy body and a stable financial condition are vital. The pre-retirees found that the
future is too turbulent to be planned and hence it is unrealistic to conduct retirement
planning. Financially, they hoped to obtain more Mandatory Provident Fund (MPF)
return and to be independent from children’s support. With reference to the intention
of retirement planning, the pre-retirees had a series of behavior and actions to keep
themselves healthy, secured and active in society, for example, becoming a volunteer,
doing physical exercise, post-retirement work, life-long learning and so on, which
could help promote a flourishing and enjoyable retirement life. This framework
expects to provide ideas for soon-to-be retired individuals to conduct retirement
planning.
Based on the opinion of the pre-retirees and experts interviewed, some policy
implications are recommended for the government and policy makers to facilitate
retirement planning. Various retirement protection schemes such as MPF should be
reformed as its administration charges are unreasonably costly and the return is not
enough for leading a decent retirement life. In addition, it is necessary to launch the
Universal Retirement Protection (URP) Scheme for elders to lead a decent life with
enough security, as the Old Age Living Allowance is too slim while the
Comprehensive Social Security Allowance (CSSA) has a labelling effect with
complicated means test procedures. Improvement on healthcare services and
long-term care support are necessary as the waiting time in the Central Waiting List
(CWL) has been tediously long which poses huge burden for caregivers and the elders.
82
Also, the Bought Place Scheme has not been popular among the caregivers and elders
as the quality of the private elderly homes is not standardized enough. A stricter
standard ought to be set. Elderly Health Care Voucher Scheme (EHCV) has been
promoting primary and preventive care service for the elders and hope to reduce long
term burden to the medical system, but it has not been too effective. Voluntary Health
Insurance Scheme (VHIS) would be a good start in pushing insurance protection
forward to cover medical expenses for elders. Developing elders’ interest in physical
exercise is indispensable in promoting a healthy well-being and reducing reliance on
long-term care and medical care. Also, more public hospitals are needed in a long run
to cope with a huge increase in demand in treating ageing-related illnesses.
Retirement financial planning through appropriate investment is deemed to maintain a
secured monetary return for retirees and hence improving financial literacy of general
public is very important. Reverse Mortgage Programme is a means in making good
use of the private owned property and to obtain a better living standard in the old age,
but pre-retirees’ understanding and confidence on the programme are not good enough;
the government should pay more efforts to educate and promote the concept of
reverse mortgage to the general public. Legislations on age discrimination should be
reviewed and to enhance older employee’s bargaining power in disputes with
employers on flexi-retirement and post-retirement work. Furthermore, the government
could help promote positive images of the elders as they have contributed a lot in the
past, and hence to build a more harmonious and age-friendly society. These policy
implications and recommendations expect to link up with the security, health and
social participation issues discussed in the localized retirement planning framework.
A long-term and effective retirement planning is used to facilitate for a better
preparation of retirement and later stage of life. Basically, the pre-retirees interviewed
shared same ideas that there is a strong need to conduct an earlier retirement planning
and the ideal age for starting retirement planning should be around 40 but no later
than 50. The proposed localized retirement planning framework is targeted for low,
middle and high salary band pre-retirees as a reference on retirement preparation
towards financial and non-financial aspects.
83
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Appendix 1
Questionnaire
「為準退休人士建立退休計劃可行性」研究問卷
嶺南大學亞太老年學研究中心現正進行「為準退休人士建立退休計劃可行性」的
意見調查，以了解 50-64 歲準退休人士對退休後的預期需求。你所提供的資料能
讓我們構建一個本地化的退休計劃框架及讓政府改善現有政策以完善長者退休
後的生活。故此，懇請你回答以下所有問題。請於適用空格打上號。
甲部
退休準備意識
一）你預期退休後，以下項目對你有多重要？
極為
重要
重要
不重
要
完全
不重
要
1. 良好的身體健康
2. 良好的心理健康及正面人生觀
3. 財政穩定
4. 住房穩定
5. 社交及家庭關係和支援
6. 社會參與 (包括休閒活動、義工、工作、學
習等)
二）你有沒有就以下各方面訂立清晰明確的退休目標？
1. 健康方面
(例：我在兩年內將會戒煙)
2. 財政方面
(例：我要在退休前儲到 100 萬港元)
3. 住房方面
(例：我希望留在現時居住的區域居住)
4. 社交及家庭關係方面
(例：退休後，我每星期最少要和朋友見面一次)
5. 社會參與 ― 休閒生活方面
(例：我退休後每年至少會去一次旅行)
6. 社會參與 ― 工作方面
(例：退休後，我將會成為物業保安員)
93
有
沒
有
三）你有沒有信心達到以下各方面的退休目標
完
頗
頗
完
我沒
嗎？
全
有
信
心
有
信
心
沒
信
心
全
沒
信
心
訂下
該範
疇目
標
1. 健康方面
2. 財政方面
3. 住房方面
4. 社交及家庭關係方面
5. 社會參與 ― 休閒生活方面
6. 社會參與 ― 工作方面
四）你認為你的知識與技能足夠讓你達成以下
完
頗
各方面的退休目標嗎？
全
足
夠
足
夠
頗
不
足
完
我沒
全
不
足
訂下
該範
疇目
標
1. 健康方面
2. 財政方面
3. 住房方面
4. 社交及家庭關係方面
5. 社會參與 ― 休閒生活方面
6. 社會參與 ― 工作方面
五）你認為退休後，以下哪一項令你最擔憂？（最多選兩項）
 身心健康
 經濟開支
 無所事事，生活苦悶
 沒有家人朋友支持
 入住安老院舍
 外貌衰老
 居住環境欠佳
 其他，請列明: __________________
六）你同意現時香港的社會制度和政局能保障你退休後的安穩嗎？
 非常同意
 頗同意
 頗不同意
 完全不同意
七）以下哪個最能形容你現時對退休生活的感覺？
 期待
 沒有特別感覺
 焦慮
 其他，請列明: __________________
94
乙部
退休準備活動
八）請問你有否以準備退休生活為目的，進行以下行為？
A.
了解各項由政府提供的養老相關的社會保障項目，例如綜援、
生果金等
B.
了解各項由政府推動的養老優惠計劃，例如乘車優惠、長者咭
等
有
沒
有
九）你金錢以外的資源（例如工餘時間、擁有相關知識的人脈等）足夠進行第 A
至 B 項的退休準備活動嗎？
 完全足夠
 頗足夠
 不太足夠
 完全不足夠
 我完全沒進行以上的退休準備活動
十）請問你有否以準備退休生活為目的，進行以下行為？
C.
參加正規的理財計劃講座
D.
留意你的強積金組合表現，並根據其表現而改動投資組合
E.
為你的強積金戶口作額外自願性供款
F.
為退休生活進行儲蓄
G.
進行長線投資，例如購入債劵、股票、基金或物業等
H.
購買保險，例如人壽、意外、醫療或儲蓄保險等
I.
了解退休後的財政資源，例如統計資產淨值、與子女商議供養
事宜等
J.
計劃退休後的工作（以財政收入為目的）
K.
安排退休後的住房，例如與誰同住、會否使用安老院舍等
L.
計劃或已設立遺囑
十一）你的財政資源足夠進行第 C 至 L 項的退休準備活動嗎？
 完全足夠
 頗足夠
 完全不足夠
 我完全沒進行以上的退休準備活動
有
沒
有
 不太足夠
十二）你金錢以外的資源（例如工餘時間、擁有相關知識的人脈等）足夠進行第
C 至 L 項的退休準備活動嗎？
 完全足夠
 頗足夠
 不太足夠
 完全不足夠
 我完全沒進行以上的退休準備活動
95
十三）請問你有否以準備退休生活為目的，進行以下行為？
有
沒
有
M.
進行定期的健康檢查
N.
建立健康的生活模式，例如定時運動、著重營養、戒除吸煙等
不良習慣
O.
計劃退休後的休閒活動，例如興趣嗜好、旅遊等
P.
計劃退休後的非經濟性工作，例如義工
Q.
計劃學習進修，例如學習新技能或興趣，以及終身學習
R.
建立及加強與家人和子女間的關係
S.
從書本、電視、工作坊及互聯網等渠道了解退休的資訊
T.
與其他人商量退休相關事項，包括家人、同事、朋友，專業人
士等
十四）你的財政資源足夠進行第 M 至 T 項的退休準備活動嗎？
 完全足夠
 頗足夠
 完全不足夠
 我完全沒進行以上的退休準備活動
 不太足夠
十五）你金錢以外的資源（例如工餘時間、擁有相關知識的人脈等）足夠進行第
M 至 T 項的退休準備活動嗎？
 完全足夠
 頗足夠
 不太足夠
 完全不足夠
 我完全沒進行以上的退休準備活動
丙部 個人資料
十六）請問你的年齡為？
 五十至五十四歲
 五十五至五十九歲
 六十至六十四歲
十七）性別
 男
 女
十八）教育程度
 未接受正規教育
 大專或以上
 小學
 中學
 其他，請列明: _________________
十九）你有多少子女？
＿ 個
96
二十）你屬於那個入息（平均每月收入）組別？
(**請務必作答，以便建構評估不同收入群組之退休準備及需要)
 $18,353 以下
 $18,353 至 $56,811
 $56,811 以上
二十一）你現時從事的行業是？
二十二）你現時的就業狀態為？
 全職
 半職
___________________

其他，請列明: _________________
~~問卷完~~
97
Questionnaire for the study of
“Retirement planning for pre-retirees in Hong Kong”
The Asia-Pacific Institute of Ageing Studies (APIAS) of the Lingnan University is
now conducting a study titled “Retirement planning for pre-retirees in Hong Kong” to
investigate the expected needs for post-retired life of pre-retirees aged 50-64. Your
reply can help us construct a localized retirement planning framework and also help
the government refines its policies to optimize the elderly retired life. Therefore, we
pledge your patient in answering all the questions. Please put a in the suitable
brackets.
Not
Important
Totally not
important
Important
i) How important do you expect the below items to
be after your retirement?
Very
Important
Part A Awareness of Retirement Planning
Yes
No
1. Good physical health
2. Good psychological health and positive attitude
3. Financial stability
4. Residential stability
5. Social and familial relation and support
6. Social participation (including leisure activities,
volunteering, working and studying)
ii) Have you established clear retirement goals for the below aspects?
1. Health
(e.g. I will quit smoking in 2 years)
2. Finance
(e.g. I will save up at least 1 million HKD before retirement)
3. Residential
(e.g.：I wish to stay in the current district)
4. Social and familial relation and support
(e.g. I will meet my friends at least once every week after my retirement)
5. Social participation - leisure
(e.g. I will go travelling once a year after retirement)
6. Social participation – work
(e.g. I will work as a security guard after retirement)
98
Social participation - leisure
6.
Social participation - work
iv) Do you find your knowledge
and skills sufficient to
facilitate the achievement of
the retirement goals in the
below aspects?
1.
Health
2.
Finance
3.
Residential
4.
Social and familial relation
and support
5.
Social participation - leisure
6.
Social participation - work
I have not
set goal in
this aspect
5.
I have not set
goal in this
aspect
Social and familial relation
and support
Totally
unconfident
4.
Totally
unconfident
Residential
Quite
unconfident
3.
Quite
unconfident
Finance
Quite
confident
2.
Quite
confident
Health
Totally
confident
1.
Totally
confident
iii) Do you feel confident to
achieve your retirement goals in
the below aspects?
v) Which of the following is/are expected to worry you the most after your
retirement? (maximum 2 choices)
 Physical and
 Economic expenses
 Boredom and lack of
psychological health
activities
 Lack of support from
family and friends
 Admission to elderly
residential homes
 Poor living
environment
 Other, please specify:
__________________
99
 Ageing of appearance
vi) Do you agree that the current social system and political situation in Hong Kong
can facilitate stability in your retired life?
 Totally agree
 Quite agree
 Quite disagree
 Totally Disagree
vii）Which of the following is the best in describing your feeling towards retirement?
 Anticipated
 No specific feelings
 Anxious
 Others, please specify: __________________
Part B Retirement Planning Activities
viii) Did you perform the following activities in preparing your
retired life?
A. Understanding governmental assisting schemes (e.g. the
Comprehensive Social Security Allowance, the Old Age Living
Allowance, etc.)
B. Understanding governmental senior concession allowance (e.g.
Senior Card, Transport Concession, etc.)
Yes
No
ix) Do you think your non-financial resources (e.g. leisure time, social network with
related knowledge) are sufficient to facilitate the retirement planning activities
listed from item A to B?
 Totally sufficient
 Quite sufficient
 Quite insufficient
 Totally insufficient  I have not performed any of the above retirement planning
actions
x) Did you perform the following activities in preparing your retired
life?
C. Attending formal financial planning seminars
D. Tracking your Mandatory Provident Fund (MPF) performance and
make adjustment (s) for retirement
E. Making MPF voluntary contribution
F. Contributing personal saving for retirement life
G. Making long term investment (e.g. bonds, stock, funds, properties,
etc.)
H. Contributing to insurance (e.g. life, saving, accident and medical
insurance, etc.)
I. Assessing post-retirement resources (e.g. net worth of assets, support
from children, etc.)
J.
K.
L.
Planning for post-retirement jobs (for financial purpose)
Making housing arrangement (e.g. who to live with, using
residential homes or not, etc.)
Planning to make or already made an estate/will
100
Yes
No
xi) Do you think your financial resources are sufficient to facilitate the retirement
planning activities listed from item C to L?
 Totally sufficient
 Quite sufficient
 Quite insufficient
 Totally insufficient  I have not performed any of the above retirement planning
actions
xii) Do you think your non-financial resources (e.g. leisure time, social network with
related knowledge) are sufficient to facilitate the retirement planning activities
listed from item C to L?
 Totally sufficient
 Quite sufficient
 Quite insufficient
 Totally insufficient
 I have not performed any of the above retirement
planning actions
xiii) Did you perform the following activities in preparing your
retired life?
M. Performing regular health checkup and screening
N. Establishing healthy lifestyle (includes healthy diet, regular
exercise, quitting hazardous habit such as smoking)
O. Planning leisure activities after retirement (e.g. hobbies and travel)
P. Planning for post-retirement jobs (for non-financial purpose, includes
Yes
No
volunteering)
Q.
R.
S.
T.
Planning to learn (e.g. learning new skills and lifelong learning)
Building and reinforcing social network with family and children
Searching for retirement related information (includes the
information obtained from books, TV, internet and workshops)
Discussing retirement with other people (includes family, relatives,
friends and professionals)
xiv) Do you think your financial resources are sufficient to facilitate the retirement
planning activities listed from item M to T?
 Totally sufficient
 Quite sufficient
 Quite insufficient
 Totally insufficient
 I have not performed any of the above retirement
planning actions
xv) Do you think your non-financial resources (e.g. leisure time, social network with
related knowledge) are sufficient to facilitate the retirement planning activities
listed from item M to T?
 Totally sufficient
 Quite sufficient
 Quite insufficient
 Totally insufficient
 I have not performed any of the above retirement
planning actions
101
Part C Personal Particulars
xvi) Which of the following age group are you in?
 50-54
 55-59
xvii) Gender
 Male
 60-64
 Female
xviii) Education level
 Not in formal education
 Tertiary education or above
 Primary school
 Secondary school
 Others, please specify: __________________
xix) How many children do you have? ________
xx) Which of the income (monthly average) cohort are you in?
(**Answer is required as it is needed to assess and formulate the needs and
retirement planning preferences of each income cohort.)
 Below $18,353
 $18,353 to $56,811
 above $56,811
xxi) Which industry are you currently in?
___________________
xxii）What is your current employment status
 Full time
 Part time

Others, please specify:
__________________
~~End of questionnaire~~
102
Appendix 2 Consent form
檔號：
（僅供內部使用）
機密文件
「為準退休人士建立退休計劃可行性研究」
參與焦點小組同意書
1.
本人
（參加者姓名）
，即下方簽署人，謹此同意參與嶺南
大學亞太老年學研究中心陳章明教授負責，「為準退休人士建立退休計劃可行
性研究」之焦點小組，並同意提供資料作本計劃之研究、報告撰寫、引用及發
佈之用。
2.
本人亦謹此同意嶺南大學亞太老年學研究中心在以下焦點小組進行錄音及收
集個人資料。所有錄音與資料將受《個人資料私隱條例》保障，嶺南大學亞太
老年學研究中心將遵守法律條文規定將資料保密。所有資料將於研究完成後六
個月內全部刪除。
3.
本人清楚研究計劃的內容及其程序，並明白當中涉及之利益及風險。在焦點小
組開始後，本人知悉擁有對程序或內容進行提問、中途拒絕錄音及隨時退出之
權利。
參加者簽署：
姓名：（
見證人簽署：
）
姓名：（
）
見證人職位：
日期：＿＿＿＿＿＿＿＿＿＿＿＿＿＿
103
File No.：
(For internal use only)
Confidential
“Retirement Planning for Pre-Retirees in Hong Kong”
Consent form – Focus group participation
1.
I,
(name of participant), holder of the signature below,
agree to participate in the focus group for the research project captioned
“Retirement Planning for Pre-Retirees in Hong Kong” conducted by Prof. Chan
Chung-ming, Alfred of the Asia Pacific Institute of Ageing Studies, Lingnan
University (APIAS). I hereby give APIAS my consent to use the information I
provided for this research project in its report writing, citation, and publication.
2.
I also give APIAS my consent to audio-record the process of the focus group
interview and collect my personal particulars. I understand that all recordings and
personal information collected will be kept confidentially by APIAS in accordance
to the “Personal Data (Privacy) Ordinance”, and will be deleted in six months upon
the completion of the research project.
3.
I understand the contents and procedures of this research project, and the possible
interest and risk incurred. I have been informed of my right to revoke my consent
for recording and/or participating in the focus group at any time.
Signature of Participant:
Signature of Witness:
__________
Name: (
_________
)
___
Name: (
)
Position held by Witness:
____________
Date: ＿＿＿＿＿＿＿＿＿＿＿＿＿＿
104
Appendix 3
Demographic data form
個人資料表格
1. 姓名：_________________
2. 性別： □ 男
□女
3. 年齡: _________________歲
4. 教育程度
□ 未接受正規教育
□ 大專或以上
□ 小學
□ 中學
□ 其他，請註明：_________________
5. 現時工作狀態：
□ 兼職
□ 全職
□ 其他，請註明：_________________
6. 現時職業：________________________
7. 就職公司名稱：___________________________________
8. 你屬於那個入息（平均每月收入）組別？
□ $18,353 以下
□ $18,353 - $56,811 □ $56,811 以上
9. 你有多少子女?
___個
10. 電話:_______________________
11. 電郵地址:_________________________
105
Personal information sheet
1. Name:_________________
2. Gender: □ M
□F
3. Age: _________________
4. Educational attainment:
□ Not in formal education
□ Tertiary or above
5. Current employment status:
□ Part time
□ Full time
□ Primary School
□ Secondary School
□ Others, please specify:
________________________
□ Others, please specify:
6. Current occupation: ________________________
7. Current company name: ________________________
8. Current monthly income:
□ Below $18,353
□ $18,353-$56,811
9. How many children do you have?
□ Above $56,811
___
10. Telephone:_______________________
11. E-mail:_________________________
106
Appendix 4
Focus group interview guide
焦點小組訪談指南
多謝您應邀接受我們的訪談！嶺南大學亞太老年學研究中心現正進行「為準退休
人士建立退休計劃可行性」研究，以了解 50-64 歲準退休人士對退休後的預期需
求。您所提供的資料有助我們更深入了解香港準退休人士的退休準備狀況，並提
交意見予政府作參考和長遠考慮。
退休期望
一）你覺得退休後最重要的是什麼？你覺得怎樣才叫滿意的退休生活？

在「積極樂頤年」3的概念下，退休後的社會參與對你重要嗎（例如休
閒活動、義工、工作、學習進修等）？你認為自己在退休後會多參與嗎？
為什麼？
二) 你現時對於退休生活有甚麼感覺？(例如期待、焦慮、或是其他?)
退休準備的理解
一) 於你而言，甚麼是退休準備？
二) 有需要為退休作任何準備嗎？
訂立退休目標
一）你覺得有需要訂下退休目標嗎？為什麼？
二）你現在有任何退休目標嗎？你的目標是怎樣訂下的？（例子可參照附表）

有任何人協助過你訂下上述目標嗎？(僱主?其他團體?)

請根據附表，為各項退休目標依重要性排序（頭三位）

你有為自己的健康狀況及居住安排訂下目標嗎？

(你有健康及財政方面的目標嗎？為什麼設立或不設立這兩方面的目
標？

你有打算在退休後繼續工作嗎？為什麼？
三）你有信心達成你的退休目標嗎？預期最大的挑戰在哪？
3
人口老齡化是近年全球廣泛關注的一個議題，世界衞生組織在 2002 年第二屆世界老齡大會發
表了一個政策綱領，提倡「積極樂頤年」(Active Ageing)，協助各國應付人口老化的挑戰。
「積極
樂頤年」的意思是指在一個人的成長過程中充分利用「健康」(health)、
「參與」(participation) 及
「保障」(security) 方面的機遇，從而改善老年生活質素。
107
退休準備能力
一）若你要達成你的退休目標，你清楚要準備甚麼嗎？包括：
(i) 財政相關項目 (ii) 非財政相關項目
二）你覺得在什麼範疇上最不清楚如何做準備或最難做準備？為什麼？
 財政上的準備會否令你覺得特別困難？
三）你覺得自己有充份的知識和意識準備退休嗎？
退休準備行動
一）你現在有採取任何行動準備退休嗎？



你為什麼會進行這些行動？
你是從什麼途徑得知要採取上述的行動？
什麼退休準備行動令你覺得最難？為什麼？

對你而言，有甚麼是需要為退休作準備？
二) 若無為退休作任何準備，原因是甚麼？無足夠金錢、無充份時間、不懂如何
規劃及不清楚退休計劃的重要性是當中的原因之一嗎？
三）你有沒有一些退休準備行為你是想做而沒能力實行的？
 為什麼會出現這情況？
 你覺得有什麼解決方案？
退休準備的挑戰
一）你認為在準備退休時最大的挑戰是什麼？你覺得有什麼不足？有什麼能協助
你應付這些挑戰？你認為政府或僱主應在這方面提供協助嗎？你又會想他們提
供什麼協助？
附表－各項退休目標範疇及其例子
退休目標範疇
例子
健康方面
例：我在兩年內將會戒煙
財政方面
例：我要在退休前儲到 100 萬港元
住房方面
例：我希望留在現時居住的區域居住
社交及家庭關係方面
例：退休後，我每星期最少要和朋友見面一次
社會參與 休閒生活方面
例：我退休後每年至少會去一次旅行
社會參與 工作方面
例：退休後，我將會成為物業保安員
108
Focus group interview guide
Thank you for accepting our interview! The Asia-Pacific Institute of Ageing Studies
(APIAS) of the Lingnan University is now conducting a research study titled
“Retirement planning for pre-retirees in Hong Kong” to investigate the expected
needs for post-retired life of pre-retirees aged 50-64. Your reply can help us construct
a localized retirement planning framework and also help the government refines its
policies to optimize the elderly retired life.
Retirement expectation
i) What do you think is the most important aspect of life after retirement? How do you
think an ideal retirement life should look like?

Under the concept of Active Ageing4, do you find social participation after
retirement important for you? (E.g. leisure activities, volunteering, working
and learning). Do you think you will often engage in such activities? Why?
ii) How do you feel towards retirement life at this moment? (E.g. anticipating,
worrying or other feelings)
Understanding of retirement planning
i) What do you think retirement planning is?
ii) Do you think it is necessary to make retirement planning?
Establishing retirement goals
i) Do you think it is necessary to establish retirement goal(s)? Why?
ii) Do you have any retirement goals now? How do you make them? (Please refer to
the appendix for a list of example retirement goals.)

Does anyone help you to establish the above goals? (Employer? Third
parties?)

According to the appendix, please rank the aspects of retirement goals
according to your priority (please rank the top 3).

Have you set goal(s) for your health condition and living arrangement?
4
Population ageing is one of the most discussed topics recently around the globe. The World Health
Organization had conceived its “Active Ageing Policy Framework” in 2002 to aid the countries in
tackling the challenge from population ageing. Active ageing is defined as the process to improve
elderly quality of life through the optimization of the opportunity of health, participation and security.
109

Do you have goals for health and financial aspects? What is the reason(s) of

setting up or not setting up such goals?
Do you plan to work after retirement? Why?
iii) Are you confident in achieving your retirement goals? What is the greatest
expected challenge?
Capacities to make retirement planning
i) Are you clear of what you should prepare in achieving your retirement goals?
a) Financial related items
ii) Non-financial related items
ii) Which aspect do you find the most confusing and difficult to prepare? Why?

Do you find it especially difficult to prepare for financial related items?
iii) Do you think you have sufficient knowledge and conscious in preparing for
retirement?
Retirement planning actions
i) Are you carrying out any retirement planning action(s)?

Why do you perform such action(s)?

Where do you learn that you should perform such action(s)?

What retirement planning action do you think the most difficult to perform and

what is the reason behind?
What do you think you need to prepare for your retired life?
ii) If you have not done anything to prepare for retirement, what are the reasons?
Because of insufficient of money, insufficient of time, lack of knowledge in planning
and/or not knowing the importance of retirement planning?
iii) Do you have any retirement planning action that you want to perform but without
the ability to do so?

Why this does happens?

In what ways that it can be solved?
110
Challenge of retirement planning
i) What do you think is the most pressing challenge in planning for retirement? What
do you think is/are insufficient? What can aid you to cope with this challenge? Do you
think the government and the employer should provide support? What kind of
support(s) should be rendered then?
Appendix: Aspects of retirement goals and its examples
Aspect of
retirement Goals
Examples
Health
e.g. I will quit smoking in 2 years
Finance
e.g. I will save up at least 1 million HKD before
retirement
Residential
e.g. I wish to stay in the current district
Social and familial
relation and support
e.g. I will meet my friends at least one every week after
my retirement
Social Participation Leisure
e.g. I will go travelling once a year after retirement
Social Participation Work
e.g. I will work as a security guard after retirement
111