Save up to HKD 10,200 per tax while planning your retirement

Retirement planning is crucial for ensuring financial stability and peace of mind。 Here’s how the IncomeBliss Deferred Annuity Plan can help you secure your golden years with a steady, reliable stream of income and peace of mind. 

AXA Income Bliss allows policyholders to make annual contributions of up to HKD 60,000, which are tax-deductible under the Hong Kong government’s tax concession scheme for qualifying annuity plans. This enables individuals to enjoy tax savings while building a steady retirement income. For those in the 17% tax bracket, this could result in tax savings of up to HKD 10,200 per year.

First, IncomeBliss gives you flexibility to choose the annuity start age from 50 to 85, and the annuity period can be 10 or 20 years, aligning with your unique retirement needs. With monthly annuity payments starting as early as age 50, you can enjoy the benefits of your retirement plan on your own terms. 

Moreover, the plan offers guaranteed and non-guaranteed components for monthly annuity payments, with potential growth opportunities through the participating fund. As a participating plan, IncomeBliss can provide tax incentives that help investors maximize their investment returns for future use. The tax savings can be used to explore extra protection for both the policy owners and their loved ones. 

Lastly, the plan offers peace of mind with life coverage and dementia protection, and a hassle-free application process for a smooth experience.

The IncomeBliss Deferred Annuity Plan offers a multitude of benefits that can help you secure financial stability during retirement. Here’s a detailed explanation of the benefits:

1. Flexible Retirement Planning: With IncomeBliss, you can choose an annuity period of either 10 or 20 years, and select an annuity start age as early as 50. This allows you to align your retirement goals with your desired financial stability.
2. Recurring Monthly Annuity Payments: The plan offers a steady stream of monthly annuity payments, comprising both guaranteed and non-guaranteed components. Guaranteed annuity payments are fixed throughout the chosen annuity period, while non-guaranteed annuity payments come with the potential for additional returns.
3. Investment Opportunities: IncomeBliss provides opportunities for potential wealth growth through non-guaranteed annuity payments, which can grow based on the participating fund’s investment performance.
4. Tax Savings: The plan is a Qualifying Deferred Annuity Policy (QDAP) certified by the Insurance Authority, allowing Hong Kong taxpayers to apply for tax deductions on qualifying premiums paid. As a policyholder, you can enjoy a tax deduction limit of up to HKD60,000 annually for individual taxpayers and HKD120,000 for married couples.
5. Life Coverage and Dementia Protection: IncomeBliss offers protection against life risks and provides a death benefit equal to the higher of 101% of the total premiums paid (less any monthly guaranteed annuity payments paid) or the guaranteed cash value at the time of death.
6. Dementia Advance Benefit: In the event that the annuitant is diagnosed with Severe Dementias after a specified waiting period, a lump sum death benefit will be paid in advance to the policy owner as a dementia advance benefit. After this payment, the policy will automatically terminate.
7. Accident Premium Waiver Benefit: If the annuitant suffers from total disability caused solely by an accident before age 65, for a continuous period of not less than 6 months, all premiums under the policy will be waived.
8. Extended Grace Period: Starting from the 2nd policy year or 1 year after any date of reinstatement of the policy, IncomeBliss offers an extended grace period for premium payments of up to 365 days, providing support during challenging times.
9. Flexible Premium Payment Options: You can choose to pay premiums either annually or monthly/semi-annually, depending on your financial situation and preferences.
10. Access to Supplementary Benefits: You can also choose to augment IncomeBliss with a range of optional supplements, such as critical illness, medical, accident, and disability protection, to tailor your coverage to your specific needs.

Let’s take a look at two scenarios for easily understanding:

1. Scenario 1: At age 45, Jane decides to invest in the IncomeBliss Deferred Annuity Plan with an annual premium of USD10,000 for a 5-year premium payment period. She chooses to start receiving her annuity payments at age 65 and to receive a 20-year annuity period. Her monthly guaranteed annuity payment is USD320, and her monthly non-guaranteed annuity payment is USD320, which totals to USD640 per month. Given a particular investment performance, Jane’s Internal Rate of Return (IRR) could be around 4.0%. By participating in the IncomeBliss plan, Jane secures a steady stream of income during retirement, minimizes risks associated with market fluctuations, and benefits from the potential wealth growth from non-guaranteed annuity payments.
2. Scenario 2: At age 35, Michael invests in the same plan, but he decides to pay his premiums monthly, with a monthly premium of USD900 for a 10-year premium payment period. He also chooses to start receiving his annuity payments at age 65 and for a 20-year annuity period. With the same monthly annuity payments as Jane, Michael’s IRR could be around 4.2%, depending on the investment performance. Michael benefits from the tax savings by contributing to the IncomeBliss plan, which he can use to purchase additional protection for himself and his loved ones during retirement. He also has the added flexibility of choosing to accumulate his annuity payments for potential additional returns.