Hong Kong is known to be a vibrant city. Yet few may be aware that Hong Kong's population will turn as old as today's Japan in six years.
The Japanese population is the oldest in the world with a median age of 44.9 in 2010. According to United Nation's projection, the median age of Hong Kong's population will reach 45.2 by 2020. This means about 26% of Hong Kong's total population or close to 2 million people will be aged 60+ by 2020!
On the supply side, nevertheless, existing insurance products offering to elderly are relatively limited. Many insurance products offer maximum issue up to age 65.
On the other hand, people seem under-prepared for the rising life expectancy -- probably longer years of life in deteriorating health. Alarmingly, almost half of the retirees in Hong Kong actually rely on their family to support their medical bills during retirement. The onset of a major health event can easily wipe out one's entire retirement savings and cause heavy financial burden to family members.
Recently, more insurance companies are launching various campaigns to highlight the importance of health planning during retirement years. Have you made your own plan?
Category: Funding longer lives: Health/medicine, Longevity risk
Location: Hong Kong