Getting Started

A fulfilling and happy retirement could require more assets than you might think. You can't simply sit back and hope that everything will somehow work itself out. The government might help out with a small amount, but nowhere near enough to guarantee you a quality retirement lifestyle.

Retirement might seem a long way off. But it's important to begin saving for it as soon as you can. Otherwise to maintain your quality of life, you might have to work for more years than you want.

Why do you need to plan for retirement?

According to Hong Kong Population Projections 2004-2033^, by 2033 approximately one in four Hong Kong people will be aged 65 and over, as a result of longer life expectancies and falling birth rates. You are likely to live longer than your parents, and will probably want to retire with a standard of living similar to your current standards, if not better. Because you can't rely on the next generation to subsidise your future, you have to plan and save to finance your own retirement.

^ Source: The Hong Kong Population Projections 2004-2033, Census and Statistics Department, HKSAR June 30, 2004.

To successfully plan for your retirement you need to know about investing and the implications of your investment decisions. It starts with understanding the terms used in investing.

Investment Fund

Asset Class

Risk

The Power of Compounding

There are a number of ways investors can manage or reduce risk. For example:

Diversification

Dollar Cost Averaging