Most Hong Kong people want to retire at 62 or thereabouts, but their objective appears out of reach.   

A new survey by AIA Group finds that respondents aim to retire at an average age of 62.2, with a median savings target of HK$3.294 million ( US$423,325 ). However, 72% fall short, with an average shortfall of HK$2.564 million. This potentially delays retirement by 12.8 years, highlighting a gap between aspiration and reality.

Although the Mandatory Provident Fund ( MPF ) plays a critical role in retirement savings, its importance is often underestimated. The survey finds that respondents expect only around 30% of their retirement reserves to come from MPF.   

However, MPF offers long-term potential for capital accumulation and growth. At the end of 2024, 125,000 MPF accounts in Hong Kong had accumulated HK$1 million or more, representing a twofold increase over the past five years.

At the same time, many face challenges and confusion when making MPF investment decisions: 65% find it difficult to select MPF funds; 57% are unclear about the differences between fund types; 56% do not understand how to interpret fund performance; and 45% are unaware of their actual annualized investment returns.   

As to investment preferences, respondents born in the 1960s prefer mixed assets funds, while Gen Zs lean towards equity funds. These two fund types have delivered the highest average annualized net returns since the MPF system's inception. Overall, 69% of respondents favour MPF equity funds, with 41% optimistic about the performance of Hong Kong equity MPF funds in the coming year, followed by 36% for North America and 35% for Chinese markets.  

Retirement planning tool

Nearly 70% of respondents agree that smart technology can help build stronger MPF portfolios. These findings suggest that tech-enabled tools can boost confidence in retirement planning and encourage more proactive MPF management.

Amelie Shen, chief corporate solutions officer of AIA Hong Kong and Macau, says: “As Hong Kong people live longer, early retirement planning becomes increasingly important. Yet many have not taken concrete action, and the retirement savings gap remains a pressing issue. At the same time, the market recognizes the positive role of smart technology in retirement planning.”

To address this gap and meet the growing demand for intelligent, personalized retirement planning tools, AIA's MPF trustee – AIA Trustee – has partnered with Hong Kong fintech firm Magnum Research Limited to launch the MPF Smart Advisor.

“This smart solution offers professional investment advice to help users plan for retirement with greater autonomy and confidence," says Shen.

The 16th edition of the AIA survey was conducted by market researcher Cimigo in August 2025 through online questionnaires and face-to-face interviews with 1,003 working individuals in Hong Kong aged 18-65, each holding at least one MPF account.