Annuity
In Hong Kong, where life expectancy averages 85 years (Hong Kong Census and Statistics Department, 2024) and retirement savings are critical, annuities offer a reliable way to secure a steady income stream, especially for retirees. An annuity is a financial product where you pay a lump sum or regular premiums to an insurer, who then provides guaranteed payments for a fixed period or your lifetime. With rising living costs and limited pension schemes, annuities are gaining popularity among Hong Kong residents planning for financial stability in retirement. Whether you’re a pre-retiree or already retired, annuities can complement MPF (Mandatory Provident Fund) savings, ensuring you maintain your lifestyle in a city where monthly expenses for retirees average HKD 15,000-25,000.
Saving You Time & Money While Shopping For Insurance
Get Free Insurance Quotes
Fill out our inquiry form, and we'll identify the perfect policy to suit your requirements and lifestyle.
Emergency Hotline: +852 2530 2530
Annuity Insights
Guaranteed Income
Annuities provide predictable, regular payments (monthly, quarterly, or annually), protecting against outliving your savings or market volatility.
Tax Benefits
Certain annuity plans, like Qualifying Deferred Annuity Policies (QDAP), offer tax deductions up to HKD 60,000 annually for eligible Hong Kong taxpayers.
Retirement Planning Tool
Annuities complement MPF and personal savings, addressing Hong Kong’s aging population and high cost of living, with over 100,000 annuity policies sold in 2024 (Hong Kong Insurance Authority).
Annuity FAQs
An annuity is a contract with an insurer that provides regular payments for a set period or life, ideal for retirees, pre-retirees, or anyone seeking stable income to supplement retirement savings.
Options include immediate annuities (payments start within a year), deferred annuities (payments start later), fixed annuities (guaranteed returns), and variable annuities (returns tied to investments).
Costs depend on the premium (e.g., HKD 500,000 lump sum or HKD 10,000/month). Returns vary; a HKD 1 million fixed annuity might pay HKD 4,000-6,000/month for life, based on age and terms.
Annuities from licensed insurers regulated by the Hong Kong Insurance Authority are generally secure, but returns depend on the insurer’s financial stability and policy terms. Check ratings from agencies like S&P or Moody’s.
Buy through licensed insurers or financial advisors. Consider your income needs, payout duration, inflation protection, and whether you want a single-life (for one person) or joint-life (for couples) annuity.
Some annuities allow partial withdrawals or surrender, but this may incur penalties or reduce payouts. Review surrender charges (often 5-10% in early years) before signing.
Unlike MPF, which is a mandatory retirement scheme with withdrawals at 65, annuities offer customizable payouts and guaranteed income. Compared to stocks, annuities are less risky but may offer lower returns.
