[Retirement planning]“Relying on children for old age” is outdated. Modern parents should start financial planning early!
Finance2026-03-16
8 Mins Read
In traditional agricultural societies, “relying on children for old age” was a common belief: children were seen as the support system for their parents in later years, providing both daily care and financial assistance. However, as social structures and economic environments have evolved, this mindset has gradually faded.
This is not because children are unwilling to fulfill their filial duties, but rather the result of objective circumstances placing heavy burdens on both generations. Skyrocketing property prices, rising living costs, long working hours, and declining birth rates… these factors have all posed significant challenges to the traditional model of “relying on children for old age.” Instead of placing all their hopes for a comfortable old age on the next generation, an increasing number of parents are choosing an alternative path — achieving financial independence through early and consistent planning. This sense of security, grounded in self-reliance, is the most valuable gift one can give to both their children and themselves.
Be ahead with WealthAhead
WealthAhead II Savings Insurance Series^ empowers you to grow your wealth with adaptability, allocate it with precision to match your vision, and pass it on with clarity and care — helping you stay one step ahead through every stage of life.
New era wisdom for parents: Freedom and confidence—the best recipe for strong family bonds
The decline of the concept of “relying on children for old age” does not mean the traditional virtue of “cherishing family ties” should be abandoned. The former reflects purely economic dependence, while the latter embodies an ethical and emotional commitment — emphasising support, care, and respect.
As social structures evolve, parents are increasingly willing to give their children the freedom to pursue their dreams with peace of mind, free from the burden of providing for them in old age. In turn, children gladly reciprocate with care and companionship, allowing their parents to feel the warmth of family in their later years. This restores the meaning of kinship to the emotional realm, shifting from material dependence to heartfelt guardianship. As a parent, how can you build a future that is both autonomous and fulfilling—for your children and yourself?
Giving your children the freedom to live without worry
When you possess a solid financial foundation, you give your children the most tangible support. They can confidently pursue their careers, build families with peace of mind, or even take on entrepreneurial challenges, knowing their parents’ lives are secured and sufficiently stable. This freedom is the strongest support you can give them.
Giving yourself the confidence for autonomy in your later years
Financial independence lets you live life on your own terms after retirement. Whether it's fulfilling a dream of travelling the world, rediscovering passions from your younger days, or simply enjoying a peaceful life, you retain your dignity and autonomy while continuing to realise your ideal way of living. Planning your finances early is a deeper expression of love and responsibility — taking charge of the future for everyone.
Be ahead with WealthAhead
WealthAhead II Savings Insurance Series^ empowers you to grow your wealth with adaptability, allocate it with precision to match your vision, and pass it on with clarity and care — helping you stay one step ahead through every stage of life.
How to give your children freedom and yourself confidence?
Modern parents often aspire not to rely on their children for security in later years, but to use their own means to give their children the freedom to live without worry—while building a comfortable, dignified retirement for themselves. To achieve this, focus on three key principles:
Key principle 1: Early discipline
The earlier you begin saving, the lighter the monthly burden. It’s like running a marathon: a longer timeline makes the journey more manageable. Regular and consistent savings break down the distant goal of retirement into achievable steps, making the future feel within reach. This year’s theme for Hong Kong Money Month is "Invest in Yourself for Greater Rewards". In addition to reading articles to enhance your financial knowledge, you can also make good use of the The Investor and Financial Education Council’s Money Tracker app to plan your finances and set goals. Visit the IFEC's website now to learn more!
Key principle 2: The power of compound
Albert Einstein famously called compound interest the “eighth wonder of the world”1. Simply put, it means your interest earns interest, allowing wealth to grow over time. Combining discipline with compounding turns retirement planning from an ideal into a tangible reality.
Key principle 3: Passing on assets may come sooner than you think
Passing on assets doesn’t have to wait until after a parent’s passing. Instead, it can begin when children are young and most in need of resources. Gradually providing assets or financial support during their formative years helps children learn to manage money, understand responsibility, and use these resources to build careers and families. Such planning makes wealth transfer truly valuable — serving as a proactive force in their lives rather than a passive inheritance.
Be ahead with WealthAhead
WealthAhead II Savings Insurance Series^ empowers you to grow your wealth with adaptability, allocate it with precision to match your vision, and pass it on with clarity and care — helping you stay one step ahead through every stage of life.
Advancing retirement and inheritance planning in parallel
After understanding the key principles above, a question arises: how can you find a financial tool that helps execute a plan effectively while offering steady growth?
Among the many options available, savings plans that combine protection with wealth accumulation are increasingly the preferred choice for modern families planning their future. AXA’s “WealthAhead II Savings Insurance Series”2 is precisely such a solution. Through such a plan, parents can continuously build wealth and safeguard their assets, while leveraging flexible withdrawals to provide stable cash flow for daily living or retirement. This combination of growth, inheritance, and cash flow supports both personal needs and precise legacy planning. It is more flexible and comprehensive than a standalone will or trust, truly allowing retirement and inheritance planning to advance together.
Highlights of AXA’s “WealthAhead II Savings Insurance Series”2 include:
Growth
- Long-term accumulation and flexible currency allocation: The plan offers competitive potential returns and provides a choice of up to 9 policy currencies3. This allows your wealth strategy to be flexible and agile, enabling you to switch policy currencies4 freely according to your personal needs. AXA’s “WealthAhead II Savings Insurance Series”2 allows funds to continue growing while maintaining flexibility.
Inheritance
- Appointing an interim owner5: If your designated contingent owner is a minor, you can pre-appoint an interim owner5. This role is similar to a trustee in a trust arrangement. In the event of your unfortunate passing or mental incapacity or physical incapacity6, the interim owner5 will temporarily manage the policy, handing them over to the contingent owner once they reach the designated age. This elegantly addresses the common concern of a “minor contingent owner being unable to manage assets.”
Cash flow
- “Wealth Master Service”7: The core of this service allows you pre-set the withdrawal start year, withdrawal period, withdrawal amount, and payment sequence for each of up to 3 recipients according to your wishes. This facilitates comprehensive planning in advance for you and your loved ones, ensuring optimal provision of cash flow support.
AXA’s “WealthAhead II Savings Insurance Series”2 offers wealth management, savings, and precise inheritance features. Through flexible planning, parents can create thoughtful and comprehensive financial arrangements for their children—providing support without imposing pressure and ensuring their care and support continues.
Modern family bonds: Freedom and fulfilment together
From a child’s first words to the moment they spread their wings, the companionship between parents and children naturally evolves through life’s stages. Though companionship may change in form, family bonds endure through a shared commitment to support and fulfilment. This two-way interaction transforms kinship from one-sided provision or expectation, freeing it from the traditional constraint of relying on children for old age.
Take action now: with prudent financial planning, create a truly free and fulfilling life in your later years. This sense of security and peace of mind is the most valuable and heart-warming legacy you can offer your entire family.
^WealthAhead II Savings Insurance Series includes WealthAhead II Savings Insurance – Prime and WealthAhead II Savings Insurance – Supreme.
1. Source: IFEC
(https://www.ifec.org.hk/web/en/blog/2021/05/eight-wonder-compound-interest.page)
2. Terms and conditions apply. For the terms, conditions and exclusions of the relevant product, please refer to the relevant product brochure and policy contract of “WealthAhead II Savings Insurance Series” (including the “WealthAhead II Savings Insurance – Prime” and “WealthAhead II Savings Insurance – Supreme”.
3. 9 policy currencies includes Renminbi (RMB), United States Dollar (USD), British Pound (GBP), Euro (EUR), Canadian Dollar (CAD), Australian Dollar (AUD), Singapore Dollar (SGD) , Hong Kong Dollar (HKD) and Macau Pataca (MOP) (MOP is only for policies issued in Macau).
4. From the 3rd policy anniversary onwards, you may apply to exercise the Currency Conversion Option within 30 days from each policy anniversary. There is no upper limit on the number of times this option can be exercised, provided that only one application can be made within one policy year. For details, please refer to the relevant product brochure.
5. The designation of the contingent owner or interim owner and the application for taking up the policy ownership are subject to the approval of the Company at its absolute discretion and must fulfill certain conditions. The interim owner is only applicable to policies issued in Hong Kong. For details, please refer to the relevant product brochure and policy contract.
6. Mental incapacitation refers to the condition of a (a) mental disorder or (b) mental handicap of the person concerned. For details of this term, please refer to the definition of “Mental Incapacitation Event” in the policy contract. Physical incapacitation refers to the loss of capacity for independent living of the person concerned as evidenced by the permanent inability to perform at least three of the activities of daily living. Please refer to the definition of “Loss of Capacity for Independent Living” and “Activities of Daily Living” in the policy contract for details. The above-mentioned conditions must be certified by a registered medical practitioner (as defined in the policy contract).
7. Wealth Master Service is an administrative service arrangement offered by the Company and not a plan feature of “WealthAhead II Savings Insurance Series”. Any application for the service is subject to the Company’s approval at its sole and absolute discretion, any applicable laws, regulations and guidelines and the administrative rules of the Company from time to time (including but not limited to the relationship and age requirements of the withdrawal recipients). For details, please refer to the relevant product brochure.
No warranty or responsibility is assumed by AXA Hong Kong and our related or holding companies regarding non-infringement, security, accuracy, completeness, adequacy, reasonableness, fitness for a purpose or free from computer viruses in connection with the information and materials provided. AXA Hong Kong and our related companies and holding companies do not accept any liability for any loss, damage, cost or other expense, whether wholly or partially, directly or indirectly, arising from any error, inaccuracy or omission of the information and materials to the extent that such liability is not excluded by law.
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Hong Kong Money Month
This year’s theme for Hong Kong Money Month is "Invest in Yourself for Greater Rewards". In addition to reading articles to enhance your financial knowledge, you can also make good use of the The Investor and Financial Education Council’s Money Tracker app to plan your finances and set goals. Visit the IFEC's website now to learn more!
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