A recent survey conducted by the Hong Kong Deposit Protection Board (HKDPB) has shown that Hongkongers are increasingly aware of the importance of saving for a secure future. The survey, titled ‘Hongkongers’ Sense of Security on Savings’, provides valuable insights into the savings habits and aspirations of the people of Hong Kong. With savings at record highs and an increased desire for financial security, individuals are taking proactive steps to prepare for uncertainties and build a solid foundation for their financial well-being.
According to the HKDPB survey, Hong Kong residents now believe they need a substantial sum of HK$1.08 million in their bank accounts to achieve a sense of financial security. This is the highest threshold recorded since the survey began six years ago, highlighting the increased emphasis on building a robust safety net.
Increasing savings and improved financial capability:
The survey results show a positive trend in the financial capability of Hong Kong people. The average monthly savings per person has increased from HK$7,700 last year to an all-time high of HK$9,000 in 2023. This 17% increase reflects improved financial resilience and a proactive approach to preparing for the future following the challenges posed by the Covid-19 pandemic.
Increased sense of security:
The study also reveals an increase in Hong Kong people’s sense of security, fuelled by their savings efforts. On a scale of 100, the overall sense of security rose from 51.4 last year to 53.7 this year, reversing a three-year decline. The pandemic has emphasised the significance of having funds available for unforeseen circumstances, prompting individuals to prioritise saving for emergencies.
Savings habits and aspirations:
According to the survey, 67% of respondents have established savings habits, which is consistent with last year’s figures. Among regular savers, 42% set aside funds for unexpected needs, while 27% save specifically for retirement. Although the percentage of individuals with savings targets for 2023 has slightly decreased, the average savings target has increased by approximately 6 percent from HK$172,000 to HK$183,000.
Youthful proactiveness:
Encouragingly, the survey shows that young people aged 18 to 29 are increasingly proactive in saving money. Their monthly savings have increased significantly from HK$5,000 last year to HK$7,900 in 2023. This shift highlights the younger generation’s recognition of the importance of building a solid financial foundation early in life.
Building resilience in uncertain times:
The survey results indicate an improved economic outlook after the pandemic, with Hong Kong residents showing a heightened awareness of financial crises. The desire for greater security has led individuals to adopt consistent savings habits, enabling them to weather economic fluctuations and prepare for the future with confidence.
But what next?
The HKDPB survey highlights the growing importance of saving among Hong Kong residents as they strive to build financial security in an ever-changing world. But what happens to the cash you have on hand when your savings increase, Syfe has a comprehensive range of investment portfolios to help you manage your wealth, learn more about how Syfe can help you seize investment opportunities.
This article is for informational purposes only and should not be viewed as financial advice. It is not meant to market any specific investment, or offer or recommend the purchase or sale of any specific security. All forms of investments carry risks, including the risk of losing all of the invested amount. Such activities may not be suitable for everyone.Past returns are not a guarantee for future performance. Investors should consider his/her own circumstances. The information or advertisement contained herein does not constitute an offer, any solicitation, invitation or recommendation to engage in any investment activities.
