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Plan in Advance for Your Retirement and Live Simply
As the global financial and business hub, Hong Kong is also facing a workforce shortage. The current global workforce shortage translates to having more senior employees compared to the young ones. Many young individuals are looking to start-up their own business or prone to job-hopping. Meanwhile, the older employees will be more likely to settle down and stick through until retirement with the same company. Most organisations and companies may have several employees who have lasted in the company. But with the longer life expectancies, Hong Kong retirement age may be raised to ensure sustainable retirement.
A Retirement Fund
Officially, Hong Kong retirement age is at 65 years old. But the standard practice is to retire early at the age of 60 years old. Since the year 2000, Hong Kong has made it compulsory for employers and employees to contribute to the Mandatory Provident Fund (MPF). Contribution to the MPF begins when the employee has worked for more than sixty days. It applies to all job, including part-timers. This ensures that even part-timers could benefit from the accrued benefits of the MPF when they retire. The MPF allows for full withdrawal upon reaching the retirement age of 65. Under certain circumstances, the MPF allows for withdrawal due to early retirement. For as long as an individual is working, the employer and employee must contribute to the fund. Early retirees at the age of 60 can continue working, maybe in a part-time job. Thus, they could still accumulate wealth in their MPF until their 65th birthday.
Living in Retirement
Generally, Hong Kong is among the expensive cities to live in. When an individual retires, their primary objective should be sustainable living. Hong Kong residents desire typically to invest their hard-earned money in property. Although Hong Kong properties are expensive, it is common to see Hong Kong residents purchasing properties outside of Hong Kong. This is one way to continue to earn a passive income in the years of retirement. The average man and woman in Hong Kong live up to 82 and 86, respectively. This issue shows that the Hong Kong ageing population will outnumber the workforce soon. Thus, individuals in employment need to begin planning for their retirement before reaching the Hong Kong retirement age.
The Rainy Days and Golden Years
The planning should include staying physically and psychologically healthy. We have been mind-conditioned that retirement is the golden years that is blissful. That may be true because when we retire, we can immediately tune in to our needs instead of work. With work comes income, and income pays for almost everything we pursue in today’s world. Thus, while in employment, our goals should include how we want to live the retirement period. This includes adjusting the needs of living standard, healthcare, finance, family life and other pursuits in life. Without proper planning, all that money saved can will away without notice. Retirement also gives you plenty of time in hand. Have a plan of what to do with all that time, to keep your mind and body occupied enough.
