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Understanding plans key to avoiding expat pitfalls

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HONG KONG, with its low tax base, good salaries and perks, has given many expatriates more money than they had hoped of earning at home.

With enough disposable income, the idea of entering into a pension scheme becomes feasible.

So, those considering a retirement policy, should make sure they do not become another victim of the smooth talk offered by financial salesmen.

Unlike most Western countries, Hong Kong is just getting used to the idea of a state pension scheme.

The concept of retirement planning is still relatively immature in the territory. Some employers, however, do provide their own schemes or provident funds, with some being more generous than others.

Those shopping around for a plan should make sure they fully understand what they are buying. And if they are benefitting from their company's scheme, they should make sure they understand the fundamental points concerning the employer contribution ceiling and the basics of the central provident fund (CPF).

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