T Rowe Price, a US-based global asset management firm, has released its 2025 T Rowe Price Hong Kong Retirement Survey. It shows that Hong Kong residents are turning away from the traditional retirement age of 65. It has spawned a new concept: "unretirement".

More than half of Hong Kong residents surveyed by T Rowe Price said they are turning away from the traditional retirement age of 65, with 47 per cent embracing innovative approaches including micro-retirement and unretirement.

While over half estimate that they need over HK$5 million ($637, 000) to retire comfortably in Hong Kong’s high-cost economy, a critical knowledge gap and mismatched investment strategies pose challenges to achieving a secure retirement.

T Rowe Price conducted its first Hong Kong retirement survey in May 2025, which polled 600 Hong Kong residents over the age of 30.

Among those opting for flexible retirement models, micro-retirement, or taking short and intentional breaks between careers, is an approach favoured by 80 per cent. The main drivers include maintaining work/life balance (79 per cent), relieving work pressure (58 per cent), or pursuing personal interests (39 per cent). Most respondents believe that micro-retirement is best pursued after age 50, lasting over a year. However, they also recognise the need for significant financial preparation, with most saying they would need over HK$2 million in assets to consider this approach, the firm said.

"Unretirement", or returning to work post-retirement, is also popular, with 79 per cent of those opting for flexible retirement models favouring this approach. Among these respondents, staying mentally active (69 per cent) is a more compelling reason to unretire than maintaining income sources (62 per cent). Most supporters are satisfied with earning less in their unretirement period, with 40 per cent planning to return within six months, the firm added.

These emerging retirement approaches are particularly welcomed by those over 50, with 58 per cent favouring non-traditional retirement compared with 40 per cent under-50s. Notably, 60 per cent of over-50s prefer to retire based on personal planning rather than a fixed age, compared with 47 per cent of under-50s, underscoring their desire for flexibility.

The survey also found that 70 per cent of high earners prefer flexible retirement approaches. However, only 51 per cent of them have set a retirement savings goal – the lowest among all income groups – highlighting a critical need for more robust planning to support their ambitious retirement goals.

“Hong Kong’s workforce is open to the possibilities of retirement with approaches such as micro-retirement and unretirement, and it highlights the urgent need for investment strategies that align with these evolving lifestyle choices,” said Wenting Shen (pictured right), global investment solutions strategist and portfolio manager at T Rowe Price. “One proven approach is the retirement glide path, widely used in mature retirement markets such as the US. Glide paths dynamically adjust asset allocation between equities and fixed income based on the number of years before and after expected retirement, offering a flexible framework to navigate market uncertainties and seek long-term growth. This structured method could be relevant for Hong Kong residents exploring flexible retirement paths.”

Despite this enthusiasm, significant barriers remain, the firm continued. Only 20 per cent of respondents feel they are familiar with the retirement options available on the market, including only 26 per cent of those aged over 50 who are closer to retirement.

Additionally, 71 per cent describe themselves as tolerant of medium-to-high investment risk, but most rely on conventional options – such as time deposits, or bank savings, which may not support the growth needed for a secure retirement. Notably, 40 per cent have no retirement savings goal, and 32 per cent of those favouring non-traditional retirement feel unprepared, compared with 22 per cent of those preferring to retire permanently at the standard age of 65, highlighting an urgent need for more appropriate strategies.

“Hong Kong residents are at the forefront of a global shift toward flexible retirement models, yet most lack the investment knowledge to navigate today’s volatile markets and achieve their aspirations,” said Raymond Chan (pictured left), senior director for intermediary distribution, Greater China at T Rowe Price.