Creating a steady and lifelong retirement income

Tips for retirement

Backed by the government, the HKMC Annuity Plan is an insurance scheme that helps the elderly manage their retirement income. The annuitants pay a single premium in exchange for a guaranteed and fixed amount of monthly annuity payouts until death. Currently, the majority of annuities offered in the market are in a fixed term (e.g. 20 years). The HKMC Annuity Plan creates a steady flow of income for the annuitant during retirement.

  • Premium and payouts

    The higher the premium, the higher the guaranteed monthly payment. The minimum and maximum investment amount for each annuitant is set at $50,000 and $3 million respectively. A 65 year old male with $50,000 investment will receive a guaranteed monthly payouts of $290. At $1 million, he will receive a $5,800 every month.

    Due to a longer life expectancy, female annuitants are expected to collect more monthly instalment payouts. Assuming the premium paid and entry age (65 years old) are the same, female will receive a lesser amount than males, at $265 per month for $50,000 and $5,300 for a $1 million premium.

  • Payment calculations according to age

    The HKMC Annuity Plan guarantees each annuitant instalments of monthly annuity payment equivalent to 105% of the premium paid. If you invest $1 million, the plan guarantees that you will receive no less than $1.05 million in total from the monthly annuity payments. It will take a number of months/instalments for your accumulated annuity payments to reach 105% of the premium paid.

    Designed for the elderly aged 65 or above, the amount of monthly payouts will differ according to the entry age. The older you are, the larger the amount of monthly annuity payout you will receive and it will take a shorter time for your accumulated annuity payments to reach 105% of the premium paid. Assuming that Mr Chan and Mr Wong invest $1 million in the HKMC Annuity Plan ages 65 and 75 respectively, their guaranteed monthly annuity payments and the time to reach 105% of premium paid are as follows.


  Mr. Chan (65 years old) Mr. Wong (75 years old)
Guaranteed monthly annuity payments $5,800 $7,360
Time to reach 105% of the premium paid 182 months 143 months



Before taking up the HKMC Annuity Plan, you can first make use of the HKMC Annuity Plan Calculator, an online tool offered by the HKMC Annuity Limited, to work out your guaranteed monthly payments based on different premium amounts, and the time you will need to break even. Compare the different scenarios before you make a decision.


9 May 2019