Impoverished middle class has to keep working beyond 75 years old

Damon Ho

22/11/2025

Since the real estate market fell from its peak in 2022, property prices have fallen by about 30%. The decline in property prices is more harmful to those who are about to retire. Especially for the impoverished middle class, if they need to sell their properties for cash after retirement, the funds which can be received will be significantly reduced. 

Before the property price fell three years ago, a small unit with a market value of more than HK$ 7 million is now worth HK$5 million or more. If this impoverished middle class has other assets, it is really difficult for them to retire safely. For these retirees, the only way for them to live consistently in the same apartment is to take out a reverse mortgage. Since an application for a reverse mortgage is approved, the applicant can receive about HK$12,000 per month. Since the payment is fixed, the purchasing power of this fund will be decreased time by time as inflation is incremental. 

Obviously, this monthly collection is insufficient for the Impoverished middle class to live decently with no other income. If they choose to rent out their units after retirement and then use the collective rents to live in Greater Bay Area. They may be able to have a happy life. However, if they encounter nonpaying tenants after renting out the unit, they will be miserable because the rent cannot be collected properly.

If they choose to sell the property to gain back HK$ 5 to 6 million, they will receive 3.3% return by arranging a fixed deposit in US dollars. As a result, they may receive HK$14,000 to 15,000 per month. With this income, life in the Greater Bay Area is not bad. However, if interest rates fall, monthly income will decrease. No matter how the impoverished middle-class retirees to manage their premises, their living standards will slowly decline with no other passive income. 

Therefore, the impoverished lower middle class has to keep working to maintain active income. The actual date of retirement may be deferred beyond 75 years old. For those grassroots citizens, they can apply for public housing with a monthly rent of about HK$1,000 per month. After the age of sixty-five, they can request a monthly old age subsidy of more than HK$4,000 per month. Together with other subsidies, their life may be better than that of the impoverished middle class. 

I want to leave a message

Nickname

Message

Captcha

Member Login

1. HK reaffirmed as a superconnectot 2025-11-23 13:15:41

Hong Kong's status as a supply chain ‘superconnector’ has been reaffirmed by a new US-Hong Kong research initiative commissioned by the Hong Kong Trade Development Council.

The study said this is largely driven by Mainland enterprises proactively diversifying their supply chains and leveraging the city as their supply chain management centre.

Despite global tensions, many US companies remain engaged with China due to the concentration of suppliers in regions such as the Greater Bay Area.

2. HK employment market will be recovery 26 2025-11-25 23:54:29

Hiring sentiment in Hong Kong is poised for recovery in 2026, with 34% of employers planning to increase headcount, and professional confidence is markedly higher.

Only 30% of employees now report low confidence in job prospects, down 16 percentage points YoY, according to a report from Robert Walters.

Despite the improved outlook, a clear gap remains between pay expectations and employer budgets.

Whilst 81% of job seekers expect a 10% or higher salary bump to switch roles, most commonly in the 16% to 20% range, 83% of employers plan to offer less than 6%, creating a mismatch that is expected to continue extending hiring timelines.

‹ Back