A survey commissioned by the Hong Kong Deposit Protection Board showed that 67 percent of Hong Kong residents have a savings habit and that they need to save an average of HK$1.03 million to feel sufficiently secure financially. 

The survey conducted by the Hong Kong Institute of Asia-Pacific Studies of the Chinese University of Hong Kong also showed that residents save an average monthly amount of HK$9,800 ($1,260), up 10 percent from last year, and the highest figure since the survey began in 2018.

According to the survey, nearly 80 percent of respondents put their savings in bank deposits or time deposits, approximately 5 percentage points higher than last year. Close to 20 percent of respondents have also set their average yearly savings target at HK$307,000, the highest amount since the inception of the survey, representing a 68 percent hike from a year ago.

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“Even though interest rates may decrease in the future, it may not affect the savings habit. As the global investment environment may not be stable, we believe not everybody will pull out their funds from saving when interest rates decrease,” HKDPB Chairman Connie Lau Yin-hing said in the Tuesday news conference.

The survey also revealed that pre-retirees will save an average of HK$9,600 a month this year, with the goal of saving an average of HK$5.45 million to gain sufficient sense of security for retirement.

“This enhanced sense of saving may reflect Hong Kong residents are worried about the economic situation of Hong Kong in the coming year. It may be difficult to boost the segment of private consumption expenditure at this juncture,” HKIAPS Assistant Director (Executive) Victor Zheng Wan-tai said.

Zheng added that an increase in the savings amount may also show that Hong Kong residents are confident about the local employment market and the prospects for their income levels, so that they are willing to save more.

READ MORE: Survey: HK residents saving more, but fewer actually saving

With effect from Oct 1, the protection limit on the Deposit Protection Scheme was increased to HK$800,000 per depositor per member. As at March this year, 148 local and overseas licensed banks in Hong Kong had joined the program, and the total amount of bank deposits held by members reached HK$2.58 trillion in 2023.

The survey involved telephone interviews of 1,001 Hong Kong residents aged 18 or above from August to October and an in-depth survey with 323 pre-retirees (working individuals aged 50 to 65).