About 41 percent of working people deem retirement as being "no end in sight," with nearly half of the workers anticipating an unhappy retirement life, according to a recent survey by pension product provider BCT Group.
It shows about 50 percent of workers saying they are not prepared for retirement, and even 30 percent believe they have to work beyond age 65.
The survey, which interviewed 805 people, of which 735 are working individuals and 70 are retirees, also found gaps between ideal retirement and financial preparations.
While 62 percent of the workers hope to enjoy financial freedom, about half of them save less than 10 percent of their monthly salary for retirement, and 69 percent make no voluntary mandatory provident fund contribution at all.
In addition to MPF, 60 percent of respondents use stocks as an investment vehicle for retirement.
Other financial products used include insurance saving plans, or investment-linked insurance, fund or bond, foreign currency and property investment.
However, more people from the working group choose annuity (20 percent) as an investment vehicle than the retiree group (6 percent).
Annuities are highly recognized among working people, and the government's public annuity scheme can be mobilized without waiting for a few years, making it more popular nowadays, said Billy SC Mak, an associate professor in the school of business at the Hong Kong Baptist University.
Actually, 30 percent of the monthly salary is supposed to be set baside for retirement, Mak said.
He pointed out that annuity and MPF schemes are not competitors, but rather complement each other, and he suggested that workers do not put all their savings into an annuity scheme and diversify their investment portfolio instead.