Are Asians ready for retirement?

In Singapore, it's the men who are planning for retirement.

HSBC says Singaporean men are more financially ready for retirement, with 38% responsible for retirement planning, compared to only 21% of women who have plans.

Men are taking the lead in decision-making across most aspects of financial planning, according to HSBC’s latest report: The Future of Retirement: Why family matters.

Sixty-eight per cent of Asian men and 65% of men worldwide say they make all or most of the financial decisions in the household, compared to 58% and 53% of women in Asia and globally, respectively. The only exception in Asia is China, where 63% of women claim they make all or most of the financial decisions, compared to 58% of men.

Managing the household budget is the only area where more Asian women on average, 35% compared to 30% of men, are taking sole responsibility.

In terms of retirement planning, only 29% of Asian women on average are most likely to take sole responsibility, compared to 37% of men: India (21% women vs 43% of men), Singapore (21% vs 38%), Malaysia (27% vs 33%), Hong Kong (28% vs 38%) and South Korea (32% vs 35%). In China, this is true for 36% of both genders and in Taiwan, for more women (39%) than men (35%).

Louisa Cheang, HSBC’s Group General Manager and Regional Director for Retail Banking and Wealth Management, Asia-Pacific, said: “The gender divide in saving for retirement persists in Asia, leaving women potentially exposed to financial hardship in later life. We expect a narrowing of this gap as more women in the emerging world receive education, join the workforce or start a business and make more decisions for themselves and their families. It is important that financial planning decisions that affect the household, in particular retirement and protection needs should be shared and discussed between partners to ensure that both are better prepared for retirement and other life goals and that most of the family’s financial needs are considered and taken care of.”

HSBC’s new report points to a myriad of evolving financial needs as individuals and families go through various life stages. Across Asia, 66% of respondents on average, say they have a financial plan in place, yet despite these plans, there appear to be significant gaps in the financial planning throughout adult life.

For example, six in 10 Hong Kong respondents aged 30-39 years old do not have any short-term savings. Only 19% of Taiwanese aged 40-49 are protecting their assets. Forty eight per cent and 47% of parents in Malaysia and Hong Kong, respectively, have no life insurance. Three in four South Koreans (76%) in their 50’s are not saving for retirement. In Singapore and Hong Kong, only a tenth (12% and 10%, respectively) in their 50’s are
undertaking tax planning with 80% and 94% of all respondents, respectively, without a will.