[Savings at 30] How Much Should You Have Saved by Age 30?

Turning 30 often marks a significant milestone in life. It is a time when many begin stepping into a more stable phase, whether in career development, family planning, or financial management. In a high-cost city like Hong Kong, one common question arises: How much savings should you have by age 30? This article will explore this question from multiple perspectives.  

There is no one-size-fits-all answer to this question. The ideal savings amount depends on your income, expenses, and financial habits. That said, here are a few general benchmarks you can refer to when assessing your savings level. 

One Year of Annual Income as the Target: Financial experts often suggest that by age 30, you should aim to save an amount equivalent to one year of your annual salary. For example, if you make HK$20,000 per month, your annual income would be HK$240,000, so that should be your savings goal by age 30. 

Monthly Savings as the Benchmark: According to a study conducted by the Hong Kong Deposit Protection Board, people aged 30 to 39 save an average of HK$8,400 per month. If you begin saving that amount from age 25, your total savings by age 30 could reach HK$504,000. 

Savings-to-Income Ratio as the Guideline: Financial experts often recommend setting aside 20% of your monthly income for savings. With a monthly salary of HK$20,000, you should aim to save HK$4,000 each month. If you start saving at age 25, your total savings could reach HK$240,000 by the time you turn 30. 

Your ideal savings amount at age 30 should be based on your personal income and financial goals. Regardless of your target, the most important step is to develop consistent saving habits and establish a realistic financial plan. Doing so will set you on a solid path to long-term financial well-being. 

Turning 30 often brings a mix of pressures and challenges that can substantially impact your savings plan. 

Starting a Family 

Many people begin to consider starting a family around the age of 30. This decision not only involves wedding-related expenses but also the ongoing costs associated with family life, such as housing and everyday living expenses. 

Raising Children 
According to statistics, raising a child in Hong Kong until university graduation costs at least HK$5 million. This includes tuition fees, tutoring, and extracurricular activities. It is therefore essential to start planning early for your children’s education fund. 

Purchasing a Home or a Car 
Buying a property or a car is a key life goal for many by the age of 30. Given the high property prices in Hong Kong, purchasing a home at this stage requires a down payment of at least HK$800,000 to HK$1.5 million, depending on the property value. If you have not yet entered the property market, it is advisable to begin planning your mortgage strategy as early as possible. You may also consider savings insurance as a long-term financial growth solution. 

Career Development 
Your 30s are often considered the golden years of career development, as more income opportunities may arise while you grow your professional skills and experience. However, career progression can also bring uncertainties, such as role transitions or shifts in industry trends. Being financially prepared is key to navigating potential changes ahead. 

Retirement Planning 
Although retirement may seem far away, beginning to plan at age 30 allows you to benefit from the power of compound interest. Long-term investments, such as the Mandatory Provident Fund (MPF), annuity plans, or savings insurance can help ensure a financially secure retirement in the future. 

What Can You Do If Your Income Alone Isn't Enough to Build Wealth? 

In today’s economic environment, many people find it challenging to build wealth solely through their regular income. However, with proper financial planning and the right solutions in place, you can improve your financial situation and accelerate wealth accumulation. 

Savings insurance combines protection with savings features. It is designed to help the insured accumulate wealth to achieve various life goals, such as marriage, children’s education, starting a business, or home ownership. Depending on the policy structure, the insured may withdraw the principal and returns after completing the designated premium payment period, either at policy maturity or when the target policy year is reached. 

Short-term savings insurance plans typically offer policy terms ranging from one to eight years and provide guaranteed returns with relatively lower risk. Long-term savings insurance plans, which range from five to twenty-five years, may offer both guaranteed returns and non-guaranteed dividends. These plans are suitable for individuals who prefer a stable approach to wealth accumulation or have specific financial goals and are prepared for medium- to long-term commitments. 

At Generali Hong Kong, we offer a broad range of savings and retirement solutions to help you achieve your financial goals, whether it’s home ownership, building an education fund for your children, enjoying a rewarding retirement, or legacy planning. These solutions are designed to help you build disciplined saving habits and prepare for the future. Some of our offerings, such as Qualifying Deferred Annuity Policies (QDAPs), also come with tax incentives, allowing you to enjoy potential tax savings while securing a steady stream of retirement income. 

Our savings insurance products help the insured build disciplined saving habits while achieving wealth growth and retirement planning goals. These products deliver protection with the benefit of savings, offering stable capital growth potential and supporting the insured in reaching key financial goals, such as home ownership, funding children’s education, retirement income planning, and legacy planning. Selected products, such as deferred annuities, are also eligible for tax deductions, helping ease the insured’s tax burden while securing a stable income stream after retirement. 

Visit our Savings and Retirement page for more details or contact our insurance advisors for a free consultation.