OBJECTIVES: The fairness in financial distribution in costs for healthcare is an important objective of a healthcare system proposed in World Health Report 2000 by World Health Organization (WHO). This study examines the health-related precautionary saving motive in Chinese Hong Kong residents for the health policy action to gauge on the private financing for health care. METHODS: A representative sample of 18,287 non-institutionalized people above age of 18 and below age of 65 of years of old were surveyed for their health status, income, and savings. Saving rates were calculated as saving over disposable income. We used a widely used method to estimate permanent income measure from cross-sectional data developed by King and Dicks-Mireaux 1982, and Starr-McCluer 1996. Multivariate regression analyses were performed to investigate the association between income and saving rates, and health and saving rates. RESULTS: Saving rate was hump-shaped. It peaked in age groups of 25-34 years of old, and declined steadily toward retirement age. The number of children was a significant factor in determining saving rates in multivariate regression adjusting for age, education, household composition, housing arrangements, and health status. As permanent income rises, the saving rates rises. Measuring health in terms of chronic conditions, risk behavior, resource utilized in physician visits as well as number of inpatient admissions, composite measure of chronic conditions, general health perception, saving rate was not statically significantly associated with health status. CONCLUSION: Saving rate was distributed by the life-cycle events of child bearing. Health-related saving motive was not found in Chinese residents in Hong Kong.