HNW Chinese are demanding more from their retirement
Chinese citizens are increasingly opting to spend their twilight years in luxury care homes instead of their own abodes under the care of their children.
In a survey of 1,125 high net worth individuals (HNWIs) in mainland China, research firm Hurun revealed that the proportion of those who prefer to retire in luxurious elderly care homes and similar facilities has soared by a whopping 87 percent over the last year. Meanwhile, the proportion of HNWIs who prefer home retirement faded by 26 percent.
Twenty-eight percent of respondents listed medium- to high-end care homes as their preferred method of retiring, a remarkable increase given that the same group accounted for only 15 percent in 2015.
While retiring at home is still by far the most preferred option, it has descended in popularity among HNWIs from 77 percent in 2015 to 57 percent this year.
Remarkably, the interest in retiring at a well-appointed elderly home spans generations. Thirty-nine percent of younger HNWIs or those aged under 35 admitted to wanting to retire in medium to high-end care communities. In 2015, the figure was 17 percent.
Hurun’s insights suggest a paradigm shift in attitudes across the mainland, which for millennia has followed the Confucian concept of filial piety, or respect for elders. They also put the spotlight on a relatively more recent guiding credo for older generations, the One Child Policy. The policy, which ended this year, has made respondents aware that only-children are placed under tremendous pressures to care for their parents in old age.
In other insights, the report found that more and more Chinese are becoming aware of the shortcomings of social insurance, with 95 percent of respondents buying commercial life policies to complement it.
As of May, there are 13.4 million HNWIs worth CNY10 million (USD1.5 million) and 89,000 HNWIs worth CNY 100 million (USD15 million) in mainland China.