Pedestrians cross a street in Hong Kong on Oct 31, 2021. (BERTHA WANG / AFP)
The total savings of Hong Kong residents and the percentage of regular savers have dropped to their lowest levels since 2018 as the result of pandemic-induced economic uncertainties.
The Hong Kong Deposit Protection Board’s fourth annual “Hong Kongers’ Sense of Security on Savings” survey, released on Wednesday, show that 62 percent of respondents said that they have a habit of saving, 5 percentage points lower than last year and the lowest reading since 2018 when the survey was first commissioned.
The Hong Kong Deposit Protection Board’s fourth annual “Hong Kongers’ Sense of Security on Savings” survey, released on Wednesday, show that 62 percent of respondents said that they have a habit of saving, 5 percentage points lower than last year and the lowest reading since 2018 when the survey was first commissioned
The survey, conducted by the Hong Kong Public Opinion Research Institute from Sept 1-21, polled 1,006 Hong Kong people aged 18 or above by telephone. A more in-depth survey was carried out among 301 respondents married for 15 years or less.
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A decline was also recorded in Hong Kong people’s average monthly savings for the second consecutive year, dropping 6 percent to HK$6,600 ($847) from HK$7,000 last year, the first reading below HK$7,000 since 2018.
“The impact on Hong Kongers’ saving ability and behavior have further emerged with the pandemic persisting for over two years, and several other key indicators have also reached record lows,” HKDPB Chairman Michael Hui King-man said. It will take time for savings to reflect the recent economic recovery, he added.
The pandemic has also hindered people’s ability to set consistent savings targets, results show. Only 20 percent of the respondents who are regular savers said they have set a savings target this year, an 18 percent decline from last year.
However, people’s “sense of security” on savings remains unchanged as the economic impact of the pandemic has started to stabilize. To have a “sense of security”, Hong Kong people need to have HK$490,000 in savings, similar to the HK$500,000 reported last year.
In addition, married people tend to save more, and more wives than husbands take charge of shared savings, the survey shows. About 78 percent of respondents who have been married for 15 years or less reported having regular saving habits and saving HK$8,600 a month on average, and this is 30 percent higher than that of the general group. They also need about HK$670,000 to have a sufficient “sense of security”, more than a third higher than the general public.
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While husbands were found to be the principal earners, with 65 percent of couples having a joint savings target reporting that husbands account for half or more of income, wives take more responsibility in managing the money, with about 40 percent saying the common savings are managed by the wife, followed by the husband or by both couples, both at 22 percent.
“Married persons took a more proactive approach in savings. We believe the responsibility and mutual support brought along by a family are positive motivation toward saving behavior,” Hui added.
