But by 2060, that cost could be nearly six times higher, as it is expected to hit HK$ 222.4bn.
According to the study, last year there were around 342,000 retirees in need of care, which amounted to approximately 5% of the Hong Kong population, while around 45,000 people were taking care of a family member.
However, as life expectancy increases, so will the number of people in retirement that will need looking after.
As a matter of fact, in 20 years’ time the number of retirees in care could reach 729,000, and then increase again to 890,000 by the year 2060, according to the report.
Life insurance might be the answer
Edward Moncreiffe, chief executive of HSBC Life Hong Kong, said that the report shows how much life insurance can help with the caretaking burden.
“We believe insurance players in Hong Kong have a key role in helping to mitigate this future cost burden.”
Women are the most affected
Fiona Nott, chief executive of The Women’s Foundation, said that traditionally women are the ones to carry the burden of taking care of the elderly.
This is why people need to start planning for their retirement as a lack of resources is most likely to “create financial stress and career costs” to women.
International Adviser recently reported on the issue and talked to life insurance firms around the world about the importance of choosing the right life product at different life stages.