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The economic outlook for 2024 remains uncertain, and for many, enhancing personal financial protection has become an important topic. Yet in recent years, many young people on social media have embraced the "YOLO" (You Only Live Once) mindset, prioritizing instant gratification and spending freely. Without the habit of saving, they are living from paycheck to paycheck. As a result, their current financial health faces many challenges, making long-term retirement planning even more difficult.
Hongkongers' Financial Health Index Barely Passes
A recent survey by my company on Hongkongers' financial wellbeing found that the city's overall "Financial Health Index" scored only 53.1 out of 100, merely touching the passing grade. When broken down by age, respondents aged 18 to 35 scored an even lower 51.9, trailing behind older age groups. This shows that younger people feel less optimistic about their current and future financial security and freedom.
The survey also found that 33% of young respondents wished for more lifestyle choices and the freedom to do what they love without worrying about money. However, only around 30% said they had sufficient savings, and barely half had a clear savings goal.
Saving and Investing Are Keys to Financial Health
I was once young too. Back then, retirement seemed far away, and long-term financial planning was often postponed. But in fact, time is young people's greatest asset. The earlier they set long-term wealth goals, the better their chances of achieving financial freedom and living their ideal retirement life.
There are plenty of financial tools on the market for retirement planning. Among them, government-recognized “Qualifying Deferred Annuity" (QDAP) plans are especially popular among salaried workers. These plans not only offer tax deductions but also provide a source of regular retirement income, helping participants build a steady income stream for the future. Different plans are available with varying premium payment terms, accumulation periods, and annuity durations to suit diverse needs.
Some plans also offer additional protection at different life stages. For example, the upgraded annuity plan recently introduced by my company includes support for unexpected challenges such as unemployment or accidental death. It even features a one-of-a-kind comprehensive coverage under QDAP: if the insured is diagnosed during the policy term with any covered illness that leads to a loss of mental or physical capacity—such as mental incapacity, loss of independent living ability, paralysis, vegetative state, severe head injury, terminal illness, or coma—their designated family members will receive a benefit equal to the policy's surrender value to help ease their financial burden.
As we enter a new year, it's time to review our personal finances, reflect on both current and future needs, and start planning early. Begin building your retirement savings today and take the first step toward a worry-free life for yourself and your loved ones.
(This article was published in the January 2024 issue of ET Net.)
Note: This article has been converted from Traditional Chinese to English for website language display purposes. For the original content and reference materials, please refer to the Traditional Chinese version of the page.
