Few takers for US$1.27 billion annuity plan as Hong Kong retirees complain returns don’t justify investment
Gripes range from ‘returns are too low’ to ‘I’ll have to live until I’m 100 to benefit from the scheme’, while some would rather keep their money in the pocket
The Hong Kong government’s HK$10 billion (US$1.27 billion) public annuity scheme got off to a slow start on Thursday as only a few senior investors turned out to subscribe to the programme on day one.
The scheme, which is open until August 8, allows those aged 65 or above to invest between HK$50,000 to HK$1 million in exchange for a lifelong monthly payment.
The government originally set the maximum amount of investment it would accept in the first year of the scheme at HK$10 billion, but said it would double it to HK$20 billion if there was sufficient demand.
A HK$1 million of lump sum investment in the scheme would earn HK$5,300 every month for women and HK$5,800 a month for men. The lower figure for women takes into account their longer life expectancy. The minimum investment of HK$50,000 would earn HK$265 a month for women and HK$290 for men.
The lacklustre debut now raises the question whether the cap would need to be lifted.