Retirement planning

Poverty in old age a future we must avert

Poverty in old age a future we must avert

A new report by HSBC estimates that most people will spend 18 years in retirement, but says they have enough savings to fund only 10 of those years in comfort. It paints a grim picture of elderly retirees starting to run out of money just as their medical bills and care costs start to mount in earnest.

Wednesday, 27 February, 2013, 4:55am

Cost of buying a home is main obstacle to retirement saving

Two in five Hong Kong respondents said buying a home or paying a mortgage was derailing their effort to save money.

With property prices rising, down payments have become a burden for homebuyers. Two in five Hong Kong respondents said buying a home or paying a mortgage was derailing their effort to save money, as were paying for children's education, pay cuts and the economic downturn.

21 Feb 2013 - 6:07am

Ask Melanie: New Year's evolution

Carol Loomis' book, Tap Dancing to Work, pulls together articles from and about Warren Buffett and his lifetime approach to investing.

What strategies should I consider in 2013 to shore up financial security?

Here's a programme for the next 12 days, weeks or months.

7 Jan 2013 - 4:31am

The pitfalls of investing in ILAS

Insurance commissioner Annie Choi. Photo: Warton Li

In 2010, Li (who asked that her full name not be revealed) started a new job with a higher salary. Her wealth planner, who worked for a global bank, advised Li to invest in a pension plan sold by a major insurance firm.

She agreed to the idea and committed to pay US$4,200 a month into a five-year pension investment.

17 Dec 2012 - 5:31am

Time to check the fine print

Investors should count the money in their MPF accounts at least once a year to monitor their returns. Photo: Shutterstock

Typically astute and informed about property and personal investments, Hongkongers have always been lukewarm about the Mandatory Provident Fund (MPF) and its promised benefits. Despite the best efforts of scheme providers to explain the mechanisms and funds available, concerns still linger about who gains most.

6 Nov 2012 - 4:51am

Fund data shows optimistic signs

MPF data supplied by HKIFA gives reason for optimism.

Any assessment of how well MPF funds have performed this year comes with a couple of caveats. Recent advances may compensate only in part for the declines of previous years. And headline figures for fund performance may not translate into the same gains for individual scheme members once fees have been deducted.

6 Nov 2012 - 4:24am

MPF chief seems determined to be an enemy of the people

Diana Chan Tong Chee-Ching, Managing Director of Mandatory Provident Fund. Photo: Felix Wong

"The MPF was set up in a way that was employer based and it let 250,000 employers determine the providers in order to eliminate administrative burdens. To let all 2.4 million employees freely choose their providers and make it so they could transfer at any time would effectively change the whole structure of the MPF into an employee scheme."

4 Nov 2012 - 4:15am 4 comments

Making a cautious case for insurance-linked annuity plans

Making a cautious case for insurance-linked annuity plans

I save regularly into an investment portfolio managed by my adviser and am happy with that. I'm 45, and this portfolio will be my only source of income in retirement. I could add a bit more each month, but my adviser suggests using the extra savings to buy a lifetime annuity instead. What are your thoughts on this?

5 Nov 2012 - 3:25am

Warning over public trust role for Hong Kong's retirement scheme

Anna Wu says there needs to be other policies on retirement.

The regulator of the Mandatory Provident Fund scheme is warning of problems if the government steps in to administer workers' retirement savings.

21 Oct 2012 - 4:19am 2 comments

Planning for an ageing population means no blanket payouts for elderly

Democratic Party organizes a hundred of elderly people to accuse Chief Executive Leung Chun-ying of not raising the old-age allowance.

Are the pro-democracy parties that oppose means testing of allowances for those over 70 years old really interested in the welfare of the poorest? Are they opposing the government for the sake of it, or do they believe their voters are those in the middle-income bracket, not the old folks who get entertained by the Democratic Alliance for the Betterment and Progress of Hong Kong?

21 Oct 2012 - 1:39am 3 comments

Fund provident in name but certainly not in practice

Managing director Diana Chan said that when the MPF started 12 years ago, fees were high because the fund was small. Photo: Felix Wong

"Hong Kong is a free market. However, if free market competition pressure cannot bring fees down we have to consider adding a cap."

Diana Chan Tong Chee-ching, MPF Schemes Authority, SCMP, October 19

21 Oct 2012 - 1:39am 3 comments