Over half of Hong Kong residents are turning away from the traditional notion of leaving the workforce permanently at the age of 65, with 47 percent embracing more flexible approaches, such as taking temporary breaks during their careers or returning to work after retiring, a survey has found.

The survey, conducted by a US-based global asset management firm and retirement investment management company T. Rowe Price, polled 600 Hong Kong residents aged 30 and above in May, and over half of them estimated they would need over HK$5 million ($636,971) to retire comfortably given Hong Kong's high living costs.

The concept of micro-retirement — taking breaks ranging from a few months to a year — resonates strongly, with 80 percent of the interviewees being open to and expressing an interest in flexible retirement models. The primary motivations behind this include achieving a better work-life balance, reducing stress, and pursuing personal passions.

ALSO READ: Hong Kong eyes golden opportunities for retirees

Most see their 50s as the ideal time to press the pause button —typically for a year or more — on work, but recognizing that doing so would require significant savings, with many citing HK$2 million as a minimum threshold.

Equally popular is the idea of unretirement — returning to work after retiring — favored by 79 percent of respondents opting for flexible retirement models. Notably, “staying mentally active” topped the reasons for re-entering the workforce. Forty percent of them plan to do so within six months of retiring, and are often willing to accept lower pay in exchange for flexibility in their work arrangements.

These trends are particularly pronounced among older residents and high earners. About 70 percent of high-income individuals earning over HK$45,000 per month are drawn to non-traditional retirement models, though only half of them have set specific savings targets — a gap that underscores the need for better financial planning.

Despite growing enthusiasm for alternative retirement paths, the survey exposes critical shortcomings in preparedness, with less than one third of respondents being familiar with common retirement investment products.

Raymond Chan, T. Rowe Price’s senior director overseeing Chinese markets, emphasized the urgent need to improve financial literacy as Hong Kong is at the forefront of a global movement toward flexible retirement.

READ MORE: Survey: Hong Kong residents need HK$1.03m savings to feel secure

“Hong Kong's workforce is open to the possibilities of retirement with approaches such as micro-retirement and unretirement, and it highlights the urgent need for investment strategies that align with these evolving lifestyle choices,” said Shen Wenting, global investment solutions strategist and portfolio manager at T. Rowe Price.

Shen said that one proven approach is the retirement glide path, a tool that dynamically adjusts asset allocation between equities and fixed income based on the number of years before and after expected retirement, which has been widely used in mature retirement markets such as the United States.

In Hong Kong, retirees aged 65 can access a portion of their savings through the Mandatory Provident Fund (MPF) schemes, a compulsory retirement savings system covering nearly all employees and self-employed individuals aged 18 to 65.

According to the MPF Schemes Authority’s online retirement planning calculator, an employee who starts working at 18 with a monthly income of HK$20,500 — Hong Kong’s median income level in 2024 — could accumulate about HK$3.6 million in MPF savings by age 65, with a projected 2 percent annual investment return, an annual wage growth of 3.1 percent and an annualized inflation rate of 1.8 percent, based on data from the Census and Statistics Department.

Contact the writer at stacyshi@chinadailyhk.com