Financial Planning Made Easy With BMP Wealth Hong Kong

Putting Your Retirement Plans On Track

A survey by Pensions & Investments found that 65% of people believe they may be working until they are 65 or older, or that they may never retire. However, the survey indicated that 56% of the respondents retired sooner than they expected, often as a result of health or employment-related issues. Furthermore, many people overestimate the amount they are likely to inherit.

It pays to seek financial advice: the International Longevity Centre think tank tracked individuals who received financial advice between 2001 and 2006. Then, it followed up to see how their financial situation had changed by 2016. Receiving advice between 2001 and 2006 resulted in an 11% increase in retirement wealth; however, those who received advice regularly until 2016 had nearly 50% higher wealth than those only advised at the start.

These figures clearly show that in the long term, professional financial planning and advice can provide tangible financial benefits.

Achieving A Balance Between Saving And Spending

Enjoying a much higher disposable income by working in Hong Kong provides an excellent opportunity to maximize the accumulation of personal wealth. While you might feel that you have time to build your savings, early planning is crucial to ensure you have enough money for the rest of your life.

So, how to achieve a balance between spending and saving? Here are some top tips:

Pay yourself 30% of your income before you pay others like your landlord. Most wait until the end of the month to see how much they have left, which leads to low and erratic savings.

Take advantage of the tax breaks Hong Kong provides like maximizing your MPF contributions or joining any additional workplace pension scheme, and invest your savings wisely in a well-diversified, low cost and actively managed portfolio.

If you currently have no children, you might have more disposable income now than at any other stage of life. As such, it’s a perfect opportunity to invest in your future without compromising your financial freedom in the short term.

Planning For The Unexpected

You might feel young and invincible now, but unfortunately, no one knows what’s around the corner. Life is typically full of unexpected events, and any one of these could derail your retirement plans – unless you put a financial safety net in place.

BMP Wealth's financial planners can help you plan for life's “what ifs”, such as if you become seriously ill and are unable to work for an extended period.

Understanding how such life events could affect your retirement plans can help you to put strategies in place for protecting your long-term financial wellbeing. This might include taking out adequate critical illness cover, or investing in private health insurance.