As Hong Kong further relaxed social distancing curbs on slower COVID-infections, most local residents surveyed said they’ve not resorted to “revenge spending” in the past few months.
More than 60 percent of the respondents said they did not join the spending spree while nearly 60 percent said they’re willing to forego homeownership plans to save up for their retirement or other goals, according to the survey results released by insurer Sun Life Hong Kong on Wednesday.
We noticed that 40 percent of those who’ve proactively cut living expenses have allocated their money for savings, investments or cash reserves for the rainy day. However, many don’t have any new investment or financial plans due to the uncertain future
Haymans Fung,
chief marketing and digital officer of Sun Life Hong Kong
Up to 27 percent of those who declined to overspend were still worried about the economic and employment outlook and preferred to have more cash in hand amid the pandemic.
Sun Life Hong Kong commissioned Cimigo to conduct the poll in which 1,020 residents, aged 20 to 40, were interviewed from Aug 5 to Aug 16 through online questionnaires about what they thought about consumption, financial well-being and retirement savings.
The respondents adopted a generally cautious attitude toward managing finances. Nearly 40 percent said they expected to spend between HK$10,000 ($1,290) and HK$30,000 on travel this year, but more than half said they would reserve cash for emergencies or to support daily expenditure.
About 35 percent of those polled were willing to cut expenses on entertainment, clothing, beauty treatment and haircuts, while 30 percent said they would reduce spending on dating.
About 40 percent said they were managing their finances carefully due to the dire economic situation and worries about lay-offs or pay cuts.
“We noticed that 40 percent of those who’ve proactively cut living expenses have allocated their money for savings, investments or cash reserves for the rainy day. However, many don’t have any new investment or financial plans due to the uncertain future,” said Haymans Fung, chief marketing and digital officer of Sun Life Hong Kong.
Moreover, 59 percent of the respondents said they were willing to alter their homeownership plans to save money as they don’t want to see their retirement and other goals affected.
Amid the pandemic, the number of people claiming they’re “trying hard or very hard” to plan for their retirement had soared to 54 percent from 42 percent before the public health crisis. Half of them said the pandemic has forced them to devise retirement plans or believe that extra efforts and comprehensive planning are needed to attain their original goals.
Many from the post-90s generation, aged 20 to 29, said reduced social activity during the pandemic has given them more time to plan for their retirement.
