HKDPB announces key findings of 'Hongkongers' Sense of Security on Savings' Survey for the sixth consecutive year
The Hong Kong Deposit Protection Board (HKDPB) conducted its "Hongkongers' Sense of Security on Savings" survey for the sixth consecutive year. Coupled with the return to normalcy after the pandemic, the survey findings indicate a significant growth in the average monthly savings of Hongkongers, as well as a notable improvement in their"sense of security" on savings compared to last year.
According to the survey results of this year, 67% of respondents indicated that they have built a habit of saving, which is similar to last year's result. However, there has been a significant increase in the average monthly savings of Hongkongers, rising from HK$7,700 last year to HK$9,000 this year, representing a 17% growth, this figure also reached a record high since the study began. The survey results reflect a certain degree of improvement in the saving ability of Hongkongers after three years of pandemic. The pandemic has also prompted them to take a more proactive approach towards saving for the future. Among the regular savers, approximately 42% save up" for unexpected needs," while 27% save up "for retirement."
Meanwhile, Hongkongers' "sense of security" on savings has also increased this year. The overall average of 51.4 marks last year has gone up to 53.7 marks this year, reversing the declining trend of the past three years since 2019. Over 75% of respondents achieved 50 marks or above for their"sense of security" on savings, an increase of 11 percentage points compared to that of the previous year.
Among the regular savers, approximately 20% expressed that they had a saving target for the year, a slight drop of 3 percentage points compared to that of last year. However, the average saving target amount has increased from HK$172,000 last year to HK$183,000 this year, a growth of around 6%. The findings show that Hongkongers perceive that they need savings of HK$1.08 million for a sufficient "sense of security" this year, marking a dramatic increase of 80% compared to HK$590,000 last year. This figure denotes the highest amount recorded over the years.
Female homemakers save "pin money" for unexpected needs
Pursuing the study results in 2018, this year's survey once again conducted an in-depth poll targeting specifically full-time female homemakers to examine changes in their saving habits and ability over the years. The results for this year show that approximately half of the respondents have a saving habit, which is similar to that of five years ago. While their average monthly savings this year is HK$5,600, a growth of 30% compared to HK$4,300 five years ago, the rating of"sense of security" on savings is 53.9 marks, which is on par with the overall rating of Hongkongers.
The survey also reveals that approximately 45% of the interviewed female homemakers have a habit of saving "pin money", which is 14% higher than that of five years ago. About half of them (50%) have told their family members about such savings. On average, they save HK4,300 "pin money" a month this year, reflecting a 20% growth from HK$3,500 five years ago. The main sources of"pin money"include their" previously accumulated savings" (34%), "household expenses given by spouse" (30%), and"household expenses given by adult children"(29%). The major purposes for saving"pin money" are for"unexpected personal use"(61%), followed by"unexpected family use" (23%), and "enhancing the sense of security" (17%).
Young people are more proactive in saving
In addition, the findings also uncover that 84% of those aged 18-29 have saving habits, which is 24 percentage points higher than that of last year. With the saving of HK$7,900 per month on average this year, 60% higher than the amount of HK$5,000 last year is recorded. This reflects young people not only build stable and sustaining saving habits, but also uplift saving ability.
Ms Connie Lau Yin-hing, SBS, JP, Chairman of HKDPB, said, "This year's survey was conducted after the society returned to normalcy, it helped us better understand the changes in saving habits and ability of Hongkongers after the three-year pandemic. We gladly see a substantial increase in the average monthly savings of Hongkongers, with the amount reaching a record high since the study began. Meanwhile, the 'sense of security' on savings is on the rise. The former reflects a certain degree of improvement in the economic conditions compared to the pandemic period, while the latter indicates that Hongkongers' crisis consciousness and the need for security have increased where they desire to prepare themselves for the future regardless of ups and downs, by maintaining a proactive and consistent saving habit."
"As a longitudinal project, the survey once again conducted an in-depth study on full-time female homemakers this year. Interestingly, both the proportion of female homemakers who save 'pin money' and the amount saved has increased, indicating that the majority save 'pin money' primarily to meet unexpected needs, as well as to build a greater sense of security for themselves and their families. Just like the Deposit Protection Scheme which provides statutory protection for depositors and safeguards hard-earned savings, it also contributes to maintaining the stability of Hong Kong'sbanking system, ensuring that Hongkongers can save with confidence. In the meantime, I am delighted to note that young people have built stable and sustaining saving habits. Notably, 84% of them have built saving habits for the year, which ranks second among all age groups. It reflects that the HKDPB's continuous education effort in promoting saving habits and financial management to young people is effective." Ms Lau added.
Other highlights of the survey results:
- The results reflect that Hongkongers have a significant improvement in overall financial resilience and consumption power after the three-year pandemic. Given the prevailing investment and market uncertainties, Hongkongers desire to increase their savings to bolster financial liquidity and flexibility, thereby attaining a greater"sense of security".
- Respondents aged 30-39 top the list with 93% have saving habits, the highest among all age groups, also 25% higher than the general group. They save on average HK$11,200 per month, 20% higher than the general public. With 54.9 marks for the "sense of security" on savings, they rank second among all age groups.
- Among all age groups, respondents aged 60-69 scored 56 marks, the highest on the"sense of security" onsavings. Based on returns submitted by members, the aggregate amount of relevant bank deposits held with members of the Deposit Protection Scheme (DPS), i.e., licensed banks in Hong Kong, was HK$ 2,505 billion in 2022, All depositors are protected by the DPS, and according to the statistics, the eligible deposits of about 90% of the depositors are fully covered. From 6 September to 3 November 2023, the Hong Kong Institute of Asia-Pacific Studies (HKIAPS) randomly selected and polled a total of 1,001 Hongkongers aged 18 or above across the city by telephone and then carried out a more in-depth survey with a total of 401 full-time female homemakers.
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