AIA Announces Results of 15th AIA Desired Retirement Tracker

^[1] The other cities in the GBA mentioned in the survey refer to Macau, Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen and Zhaoqing.

^[2] Source: MPF Guidelines IV.16 - Guidelines on MPF Coverage on Employees Working Outside Hong Kong:
https://www.mpfa.org.hk/en/-/media/files/information-centre/legislation-and-regulations/guidelines/current-version/part-iv/iv-16/iv_16.pdf

Appendix

Key findings
Employment in other GBA cities:	50% of respondents are open to employment in the GBA. Among these: The proportion among the younger age group of respondents (18-29 years old) was as high as 66%; The most needed support from employers were cited as dormitory/ housing allowance (77%), medical protection covering the whole GBA (71%) and transportation allowance (66%); The three main concerns include being "unclear about local healthcare policies" (73%), having "inadequate understanding of local social welfare policies" (68%) and being "not familiar with local tax policies" (62%).
Retirement in other GBA cities:	38% of respondents are interested in retiring in other GBA cities, with the top three preferred destinations being Zhuhai, Shenzhen and Guangzhou The three main reasons for their interest in retiring in the GBA include lower cost of living (80%), lower property prices (58%) and better neighbourhood environments (54%); Among them, a significant 85% are confident that their retirement reserves would be able to support their desired retirement lifestyle in their selected cities. However, 63% of them will not have enough retirement reserves, with an average shortfall of HKD1.97 million.
GBA medical protection:	87% of respondents who are interested in retiring or working in other GBA cities agree that owning medical protection covering the entire GBA is very important; Among the respondents interested in retiring in other GBA cities, 12% do not own any medical insurance and 13% only have group medical insurance, meaning they may lack medical protection after retirement.

Practical tips for working and retiring in the GBA
Employers:	Employers should provide comprehensive support Comply with legal regulations by ensuring employee participation in the MPF scheme; Review whether group medical insurance coverage includes relevant GBA cities; Pay attention to employees' physical, mental, financial and social well-being. AIA offers a variety of health protection and wealth accumulation solutions for employees, along with special offers (where applicable) to help fill protection gaps.
Employees:	Increasing retirement savings is crucial Consider making good use of financial products to meet the needs during employment, such as qualifying deferred annuity policies and MPF Tax Deductible Voluntary Contributions (TVCs) with tax-deductible features, to establish more substantial retirement reserves; Group insurance coverage may cease upon resignation or retirement. Therefore, employees may strengthen personal medical protection during employment, for example by considering a Voluntary Health Insurance Scheme (VHIS) or other individual medical protection plans based on their needs and affordability.
People who are interested in retiring in other GBA cities:	Proactively strengthen retirement and medical coverage based on their own needs and affordability Establish long-term savings goals early and put them into practice while maintaining disciplined saving habits, including regularly assessing personal financial situations and reviewing MPF investments, to ensure sufficient reserves for an ideal retirement life; Post-retirement medical coverage is important. They may consider insurance companies that provide diverse cross-border medical services for the Guangdong–Hong Kong–Macao Greater Bay Area based on their needs to enhance medical protection and avoid unexpected expenses; Strengthen medical protection based on their needs at an early stage. Obtaining insurance at a younger age may enjoy lower premiums, and avoid difficulties in obtaining coverage due to worsening health conditions as one gets older.

Remarks:

I. Investment involves risks. Investment performance and returns may go down as well as up. Past performance is not indicative of future performance. You should seek appropriate professional advice regarding evaluation of any specific product, index, report, opinion, advice or other content. You should refer to the relevant MPF Scheme Brochure for details (including risk factors and fees and charges) before making any investment decision. Please refer to MPFA website for details and fees and charges for each individual fund.

II. As tax deduction amounts can vary according to different individuals' situations, please refer to the prevailing "Inland Revenue Ordinance" rules and regulations for all MPF Tax Deductible Voluntary Contributions deductions.

III. Tax deductions compose one of the allowable deductions from assessable income. They do not equate to direct deductions from total tax payable. For details on tax deductions, please visit the website of the HKSAR Inland Revenue Department (IRD) and consult your tax and accounting advisors for tax advice.

IV. The purpose of this document is for reference only and shall not be construed as tax advice, nor is this document intended to constitute any professional advice, view, attitude, position or opinion provided by AIA. AIA expressly disclaims all warranties of any kind and fitness for a particular purpose in connection with the information contained in this document. AIA does not accept, assume or undertake any legal responsibility to any person or entity for any loss or damage of any nature (direct, indirect, consequential or otherwise), whether arising in contract, tort or otherwise, resulting from the use of or reliance on the information contained in this document. AIA and its intermediaries do not provide tax or accounting advice, and you should consult your own tax and accounting advisors for any tax advice. The above information is not and should not be taken as insurance product recommendation. Before applying for an insurance product, you must complete a financial needs analysis. If you are in doubt about the above information, you should seek independent professional advice.