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Planning for Retirement

The three pillars of retirement frame our comprehensive solution for successful retirement planning. Having each of the three pillars in your plan allows you to rest easy, knowing your savings will last and your ideal retirement is protected from unexpected costs along the way.

1.Build Your Wealth
Boost your savings to cover future retirement costs and keep pace with inflation.

2.Protect Your Wealth
It's likely you'll need to spend more on healthcare and medical treatment as you get older, but don't let the cost of hospital bills and medication dent your nest egg.

You can safeguard your retirement savings with health insurance that covers unexpected medical costs and give your loved ones financial protection, too, by securing adequate life cover.

3.Enjoy Your Wealth
We all want to enjoy ourselves when we stop working, but devoting yourself to new or existing hobbies, travelling abroad, and even daily expenses such as groceries or paying your apartment's management fee can quickly eat into your savings.

By setting up a steady stream of incoming payments over time you can ensure you don't spend too much, too fast and leave yourself with too little for the years ahead.

A retirement plan supported by each of the three pillars provides comprehensive protection for your future, but putting together your ideal retirement plan takes time and you may want to prioritise one or two of the pillars for the time being.

Always consult a qualified financial advisor who can help you assess what's right for you. For complete protection, aim to have all three pilars represented in your plan before you reach your target retirement age.

Learn more about how to:
Build Your Wealth
Protect Your Wealth
Enjoy Your Wealth

If you already receive health insurance cover from your employer that's great, but be sure to check your policy so you can fully understand what's covered and what's not.

Often you'll only be covered for basic medical costs or accidental injury and your insurance may not cover things like accident or illness when travelling abroad, protection from critical illness, or protection for your immediate family members. If that's the case it may be wise to supplement your existing plan.

Also, most health insurance provided by employers terminates when you stop working - just when you enter the stage of your life where you're most likely to need medical care. And purchasing insurance in retirement can mean paying high premiums.

Even if you have basic coverage now, it's likely you can enjoy lower insurance premiums by securing adequate protection before you reach retirement age. This can mean making a saving over the long term, leaving you with more to enjoy once you retire.

The short answer is it's never too early, but we know people have different priorities depending on where they are in their lives. The important thing is to get started if you haven't already and remember that every little helps!

Starting Your Career
Retirement may seem a long way off and getting yourself on the property ladder, saving for a wedding or just going out and enjoying yourself may seem more important. Many feel they can't make a meaningful contribution to long-term savings at this stage and will just put more into savings and investments when they're further along in their career. But take a look at the effects of compound interest and think again. You're in the best place to save less and make more.

Even setting aside a few hundred dollars a month can make a difference over time. Let's illustrate with an example. Jackie and Sam, each has a goal of saving HKD7 million before retirement at age 65. They start retirement savings at age 25 and 40 respectively. Assume a 5% of annual rate of return, compounded monthly.

  Jackie Sam
Age 25 40
Years to save 40 25
Monthly savings amount HKD 4,587 HKD 11,755
Total savings target* HKD 7,000,000 HKD 7,000,000
Total deposits made* HKD 2,202,000 HKD 3,526,000
Total interest received* HKD 4,798,000 HKD 3,474,000

*Note: Rounded to the nearest thousand

Starting retirement saving earlier, Jackie's monthly contributions to her retirement savings are less than half Sam's (HKD4,587 versus HKD11,755), and overall Sam has to deposit almost 50% more in total contributions to reach the same savings target. Compounding helps Jackie earn much more interest (HKD4,798,000 compared with only HKD3,474,000 for Sam).

Got Kids?
Every parent wants to put their child's interests first, but don't neglect your own retirement planning. Try to balance what you put away in an education fund with what you put away for yourself later - Your child may enjoy low-interest loans and maybe even a scholarship to help them pay for college, but you won't enjoy the same level of assistance in retirement and being a financial burden on your children will undo all the hard work you put into giving them the best start in life.

Retiring in 10-15 Years?
OK, if you haven't started yet it's not too late, but this now needs to be priority number one. Time to speak with a qualified financial advisor who can help ensure you're protected for the future with sufficient savings to cover daily expenses.
Contact us now to arrange a consultation. 

"Retirement income" simply means a regular stream of incoming payments during retirement. This can help you cover the costs of everyday living expenses.

To find out more about retirement income and how you can set yours up, see our Retirement Income options  or Contact a financial Advisor for more information. 

You may be better suited to certain types of investment depending on your risk profile. Before embarking on an investment it's always best to consult a fully qualified financial advisor who can make recommendations based on your unique circumstances and financial goals.

If you'd like to get a general idea of your risk appetite before you meet with an advisor, you can also fill out our short Risk Profile Questionnaire.

Still need help?

Call our dedicated hotline on (852) 2510 3941, our Customer Services Officers are standing by.

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