Hong Kong is undergoing an accelerated demographic shift toward an ageing population, and with it, the forces shaping the economy are shifting. For many residents approaching retirement, the challenge is no longer planning for life after work – it is ensuring they can afford it. 

According to United Nations projections, around one in five Hong Kong residents is now aged 65 or above, and by 2056 that figure is expected to exceed one in two, making the city one of the world’s fastest-ageing societies.  

As longer lifespans and decreasing birth rates reshape the city’s demographic profile, demand is growing for new ways to finance retirement and deliver elderly care. Recognising these challenges, the Government’s inaugural Five-Year Plan calls for stronger retirement protection measures and deeper healthcare integration across the GBA to support cross-border retirement.  

The proposal reflects the growing importance of the Silver Economy, as what was once regarded primarily as a social challenge is now emerging as a powerful driver of innovation, investment, and cross-border collaboration. 

An Ageing Society, An Urgent Challenge 

The city’s old-age dependency ratio has risen from 16.7% in 2004 to 33.9% in 2024, meaning today's workforce is supporting roughly double the seniors as it did two decades ago, as reported by the World Bank Group. For industries and policymakers, the pattern highlights the need for new solutions in healthcare, retirement planning and elderly care. 

As older consumers account for growing share of spending, businesses across industries are adapting products and services. For industries like financial services, insurance, retail, wellness, and age-friendly technologies, the ageing trend is creating entirely new categories of demands.  

The challenge is enormous as healthcare demands rise alongside an ageing population. Data from the Hong Kong Government show that total current healthcare expenditure in Hong Kong already accounts for approximately 8.3% of the GDP, emphasising the prominent role of the elderly-care services in the city’s economy.  

Meeting Rising Healthcare Needs 

For families, however, the larger concern is the cost of healthcare and elderly care.  

Rising medical costs are adding to concerns about retirement affordability. Simon Pang, General Manager at Gen Re’s Hong Kong branch, a multinational provider of reinsurance products, says that medical inflation is driven by a combination of factors like advances in technology, rising hospital charges, and use of drugs. While these contribute to higher costs, he notes that they improve treatment outcomes and quality of care.  

“Insurers have a social role to play. If medical advancements make our lives better, we should embrace them and turn risks into opportunities to make our place a better world tomorrow,” he says. Pang adds that the industry can help patients to continue to have access to advanced treatment methodologies despite rising costs.  

Looking Beyond Hong Kong 

A key driver of Hong Kong’s high cost of elderly care is the limited land supply and persistent shortage of care staff. Together, these challenges have made it difficult for operators to provide comprehensive care while maintaining the level of service expected by the elderly and their families.  

As living costs in the city continue to rise, a growing number of seniors are looking to the Chinese Mainland in search of a more affordable lifestyle. According to the Hong Kong Government, around 89,000 seniors have relocated to the Chinese Mainland since 2022, supporting the growing appeal of cross-border retirement.  

For companies like Hygge Living, an integrated elderly care provider with a presence in both Hong Kong and the GBA, the growing popularity of cross-border retirement is accelerating the development of more interconnected care models. By leveraging facilities and resources across jurisdictions, the company is able to provide seniors with seamless access to support services and affordable long-term care. 

Leo Chan, CEO of Hygge Living, agrees that the Chinese Mainland is emerging as a practical alternative. “We can see a better living environment in the GBA, the rooms are bigger and cheaper,” he says. “With the majority of care staff able to speak Cantonese in the region, there is a sense of comfort and home that can be harboured even if they are not in Hong Kong.” 

The growing interest in cross-border care comes as the Government faces mounting elderly-care costs. In 2025, government spending on elderly care reached 16 billion HKD annually, around 60% higher than five years earlier. As more retirees are relocating to the Chinese Mainland, policymakers are viewing cross-border care arrangements as a way to ease pressure on Hong Kong’s public finances and care infrastructure. 

Chan points to government initiatives that allow seniors relocating to the GBA to retain access to social welfare support. “Families now have greater flexibility to choose a care home based on the quality of care, environment and overall comfort, rather than cost alone,” he adds. 

Financing Longer Lives 

Among those watching the shift closely is Dr Felix Lee, Co-CEO at The GBA Healthcare Group, which aims to increase access to trusted and affordable care. He believes that longer life expectancy is creating entirely new markets as individuals seek to finance longer and healthier retirements. 

“There is longevity financing, asset management, and annuity. This is going to be such a huge growth area as people look to maximise their MPF [Mandatory Provident Fund] to generate long-term returns,” he says. “When you approach retirement, it is the excitement of living a retired life versus the uncertainty of depleting your assets.”  

While financial products can help seniors preserve their wealth, Lee believes affordability will be just as important in ensuring the savings last in their later years. “Although we do not directly offer longevity financing products, we work closely with governments and (re)insurers to help make healthcare spending more affordable and accessible. By leveraging lower-cost healthcare services in the GBA and using AI to promote preventive care, we help seniors manage chronic conditions more effectively, improving quality of life while reducing long-term spending.”  

Lee’s observations reflect a broader shift in consumption patterns as the elderly prioritise financial security and planning for later life. In response to growing calls for retirement income solutions, the Hong Kong Government has promoted initiatives like the HKMC Annuity Plan, which enables retirees to convert a lump sum into a stable stream of lifelong monthly income, providing greater financial security for the years ahead. 

Capturing Silver Economy Opportunities 

Yet, the rising prominence of the Chinese Mainland in elderly care does not necessarily diminish Hong Kong’s role in the Silver Economy. While the city cannot compete on cost, its competitive edge might lie elsewhere – in premium care services, specialist treatment and medicine. Both Chan and Lee assert that Hong Kong should focus on delivering higher-quality solutions that leverage its expertise and internationally recognised standards. 

The opportunities created by an ageing population extend well beyond healthcare and elderly care. For enterprises, the Silver Economy is not simply a demographic trend but a structural shift that is reshaping consumption patterns and creating different avenues for enduring growth. 

As retirement expectations evolve, the future of ageing will not be defined by a single city. By combining the GBA’s affordability and Hong Kong’s strength in specialised medicine and high-end care, the region is building a more integrated Silver Economy that better serves the needs of retirees.