Planning integral to retirement
Updated: 2009-04-04 07:50
By Tiffany Wong(HK Edition)
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Retirees take up creative pursuits under Yee Hong Foundation's Active Senior Program. |
Lying on a beach in a far-off land may no longer be a realistic dream for retirement.
Even in a downward spiralling economy, a comfortable retirement in Hong Kong is more about a steady amount of wealth and financial planning.
Jacob Chan is the director of Yang Memorial Methodist Social Service, a multi-disciplinary social-service agency that targets groups of elderly, young, disabled persons and the family as a whole.
He said the government redefined the meaning of aging with the introduction of the Mandatory Provident Fund (MPF), which delays the retirement age from 60 to 65 years.
According to the Census and Statistics Department, the unemployment rate among people aged 50 or above in 1992 was 2.5 percent. By 2004, it had climbed to 14.6 percent.
Inspired by these statistics and the fact that many seniors often consider starting their own business but lacked the necessary experience and training, the organization launched a "Business Start-up Project for Senior Citizens" to cooperate with a related training institution to develop training for the participants.
"With the effect of the baby boomers and with the longevity of the population in general, retirement no longer means an end to work but it could define as the time of a turning point, a chance to recharge and then reinvent oneself," Chan said.
His organization is not alone in focusing on the well-being of seniors in Hong Kong.
Timothy Ma is the executive director of Senior Citizen Home Safety Association, a Hong Kong-based NGO that offers services to more than 63,000 elders requiring constant care.
Ma underscored that the MPF is not enough to provide for a comfortable retirement especially when some companies do not provide this option for elderly workers. For these individuals, said Ma, retirement is not defined by a company policy, but rather, "retirement means to stop working as a full-time worker at an agency."
Many seniors find that approaching a certain age in their careers allows them the freedom to start volunteering with the community and doing activities a busy career did not allow them time to do.
"Retirement is the start of another career life if you keep on working on other companies," he said.
As such, for his organization, "the most crucial and major sustaining factor to keeping retirees with direction is to challenge them to serve the community, to learn what they missed during their busy working time."
Multigenerational households
The Chinese tradition of multigenerational households may be in jeopardy as pensions and secured lifetime employment continues to diminish in size and availability.
According to the Census and Statistics Department's 2006 Elderly Profile Report, 37.9 percent of the elderly live in public rental housing and 56.3 percent in private permanent housing. About 83 percent of the elderly live with family members (spouse and/or children) and about 10 percent live alone.
Several experts agree that Hong Kong's limited space and high cost of living impact the ability of households to support senior family members.
"In Hong Kong, different generations are not living together, but they like to live closely in the same community to maintain networks and relations," said Ma.
Senior citizens these days have to keep up with changing social values.
"More and more elderly choose to live by themselves as they would prefer to have their only living patterns and habits, also to avoid creating tense relations with other kids and their in-laws," said Ma.
Chan, however, offered the explanation that "under the influence of the Western culture most people, especially the younger generation, yearn and look for more personal space and privacy. Thus, most of them strive to live apart once when they are better off financially or when they get married."
He pointed out that a 1997 study that "highlighted that the next generation of elderly would choose to live apart from their children so as to maintain their independence and good relations with their children."
"Under the downturn of the economic climate, another common phenomenon is that some of the adult children move back to live with the elders after they sell their flats to pay debts. This situation might upset the balance of the whole family in the sense of living habits and family financial expenses," said Chan.
Retiring abroad
With these issues in mind, some seniors choose to retire abroad or remain there having left Asia many years ago.
Dr Ernest Chui, associate director of Sau Po Centre on Ageing at University of Hong Kong, said that a great majority (of seniors) stay in Hong Kong while a small number of them migrate to the mainland when they retire. Some join their children in Canada, United States and Australia."
"The old concept of retirement as staying-put is no longer the trend," said one 75-year-old man who now works in Hong Kong as a consultant. "It is not the word retirement that is important; it is a 'change of lifestyle'." He described himself as an "East-West snowbird" having decided to return to Hong Kong after spending 41 years in Canada.
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Physically-challenged residents enjoy some entertainment provided by the foundation as part of its Day Care Program. Photos courtesy of Yee Hong Foundation |
Another example is Stanley Kwan who is an alert 84 year old having retired 20 years ago after an illustrious career in Hong Kong that included heading the research department at Hang Seng Bank and being a "China watcher" at the American Consulate.
Originally from Hong Kong, he remained in touch by writing a book titled "The Dragon and the Crown: Hong Kong Memoirs" published last year by Hong Kong University.
"I just take things easy," he said modestly over the phone. He spends his retirement in the quiet pursuit of intellectual endeavors.
A wide variety of opportunities in retirement is available, but they require independence and careful planning particularly during challenging economic times.
Different strokes for different folks
The alternative nowadays is to continue working part-time, volunteering, or providing consulting services not only to survive but to remain active in one's golden years.
Seniors these days will have second, third and maybe fourth careers in their lifetimes: "It's what you do with your time that changes-whether you want to use your time to tour China or to see family members more often," said one grey-collar worker from his home in Hong Kong.
"Baby boomers no longer look at retirement per se," he said, "they no longer rely on a pension or buying a house outside the country and doing nothing."
Dr Chui warned, nevertheless, that "some seniors may lose their jobs, thus weakening the basis for their 'contributory' retirement protection scheme under the MPF."
He cited 2006 census figures that indicated 57,000 seniors aged 65 and over were still working of which 41 per cent have a monthly salary below HK$6,000. The median monthly income of the entire working population is HK$10,000.
Moreover, said Dr Chui, "if the economy slackens further, some elderly workers may lose their jobs, even already low-paid or '3D' jobs - dirty, dangerous, difficult ones. Some may have to turn to receiving government welfare. Those who rely on their adult children's financial support may also suffer indirectly as their children may also lose jobs or income."
With regards to his own retirement, Ma said that he plans to "work half-time to contribute more to the volunteer service as consultant, advisor as well as helper at some organizations."
Chan is also looking forward to retirement: "I have no worries about it because I have good preparation for it- both financially and emotionally."
(HK Edition 04/04/2009 page3)