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Retirement might not be our utmost priority now, but the earlier you plan, the less pressure would be on you. Although we may not share the same expectations on our retirement savings, a safe approach against inflation is probably what everyone looks for. Let’s debunk the 5 common wealth management options to prepare for your retirement!


Outline the necessary expenses for your ideal retirement

Have you ever thought of your ideal retired life - whether to explore the unseen parts of the world, or to spend on the basics of your daily life? According to The Institute of Financial Planners of Hong Kong (IFPHK)1, people in Hong Kong spend HKD13,465 monthly for their retirement expenses on average, which means approximately HKD4 million will be needed to sustain your ideal retirement life if you wish to retire at age of 60, assuming a life expectancy of 85 years old.


The MPF scheme serves as a good start for us to do the regular saving, yet solely relying on the return of investment from our MPF portfolio might not be sufficient to support our retirement. That’s why it is crucial for us to plan our retirement ahead when we have the luxury of time and enjoy a worry-free and fruitful life after decades of striving.

5 common wealth management options to prepare for retirement

There are 5 popular approaches to increase your wealth and each has its strengths and limitations:


Deferred annuity plan  Savings insurance  Regular deposit  Invest in high-quality stocks  Purchase a property


- Enjoy up to HKD60,000 tax deduction per annum*

- Receive regular annuity income

Receive a one-time return upon maturity   Receive a one-time return upon maturity   Earn dividend income  Earn one-time profit through appreciation 

Return on



Relatively stable

Relatively stable  Relatively stable  Relatively fluctuated  Relatively fluctuated








(regular annuity income will be distributed since retirement)
(potential losses will be induced for withdrawal)
(depending on the tenure)
(transaction can be done anytime in the stock market)
(lead-time is required to process larger capital and complex transaction) 



Relatively flexible^

Relatively flexible^ 












Amongst all captioned investment approaches, deferred annuity plan, savings insurance, and regular deposit better cater to the needs of salaryman who looks for a care-free steady return in their busy life. Of which, the tax-deductible* deferred annuity plan also helps to lighten the financial burden when planning for a fulfilling retirement.


*Premium of qualifying deferred annuity policies (“QDAP”) or tax-deductible MPF voluntary contributions ("TVC") could entitle you to tax deductions up to a maximum limit of HKD60,000 per assessment year.

^Minimum insurance premium/notional amount per year applies


5 things to know before you commit to an annuity plan


Despite all the attractive features, an annuity plan is still a relatively new concept for most people. Here are the 5 points to note whilst searching for your best fit:


(1) Understand the terms and conditions of the annuity plan

(2) Evaluate your own needs

(3) Compare the internal rate of return

(4) Weigh up the benefits/offers across insurance providers

(5) Pay attention to the surrender value


Annuity plan for dummies


Chubb Gold Fortune Deferred Annuity Plan, a Qualifying Deferred Annuity Policy (“QDAP”) certified by the Insurance Authority, is an annuity insurance plan which provides regular annuity income during the annuity period for you to achieve a hassle-free retirement, at the same time allows you to apply for tax deduction with the premium you paid.


Chubb Gold Fortune Deferred Annuity Plan (The “Plan”) provides monthly annuity income, including guaranteed monthly annuity income and non-guaranteed monthly annuity income, payable for 10 years, and offers a lump sum of maturity dividend2, including guaranteed maturity dividend and non-guaranteed maturity dividend.


Meanwhile, the plan allows the annuitant (as the policy insured) to start receiving monthly annuity income at age 55 or 653, with 2 options of premium payment term available (5 or 10 years)3. Additionally, a maximum of 2 years of premium holiday can be applied after the 2nd policy anniversary. Furthermore, tax deductions could be enjoyed for the qualifying deferred annuity premiums paid.


The plan also gives total and permanent disability benefits5. An additional 10% guaranteed monthly annuity income payout will be granted throughout the annuity period if the annuitant being the insured diagnosed with total and permanent disability before the annuity period starts. if the insured passes away during the annuity period, the plan will pay death benefit to your designated beneficiary(ies). if there is only one beneficiary, he/she may request to continue receiving monthly annuity income until the end of the annuity period6.


To achieve your dream retirement, contact your Chubb Life Hong Kong Insurance Consultant, or book a free consultation at 2232 6999.



(1) All premiums must be paid and the Policy remains in force. If there are any outstanding Policy loans, Monthly Annuity Income will be used to pay off such outstanding loans first.

(2) Maturity Dividend is payable upon Policy maturity provided that the Basic Plan is in force and the Insured is alive on the last day of the last Policy Year.

(3) Annuity commencement date and premium payment term are subject to the issueage, please refer to the product brochure for more details.

(4) Premium Holiday is not a waiver of premium. When a Premium Holiday is granted, the premium payment term will be extended accordingly. The Annuity Commencement Date and Maturity Date will also be deferred accordingly.

(5) The coverage of Total and Permanent Disability Benefit will only be applicable when the disability is certified before the Policy Anniversary on which the Insured’s Age is 65 or the Annuity Commencement Date, whichever is earlier. The additional 10% of the Guaranteed Monthly Annuity Income payout as a result of the Total and Permanent Disability diagnosis will cease upon the Insured’s death.

(6) The sole Beneficiary must make a request to us in writing and such request must be approved by us. The sole Beneficiary can request either to continue receiving the Monthly Annuity Income until the end of the Annuity Period, or to receive the Death Benefit in one lump sum. If there are more than one Beneficiary at the time of the Insured’s death, we will only pay the Death Benefit in one lump sum to the Beneficiaries.


Please refer to the product brochure, or Chubb Life’s website to understand the further details and key product risk. Please refer to the website of the Inland Revenue Department (IRD) ( or contact the IRD directly for any tax related enquiries.


Disclaimer - The content of the above article is not intended to constitute professional advice. Although all content is believed to be accurate, Chubb Insurance Hong Kong Limited (Chubb) makes no warranty or guarantee about the accuracy, completeness, or adequacy of the content of this article. Users relying on any content do so at their own risk.

The above information shall not be construed as an offer to sell, solicitation or persuasion to buy or provision of any of our products outside Hong Kong.


The “Chubb Life Hong Kong”, “Company”, “we”, or “our” herein refers to Chubb Life Insurance Company Ltd. (Incorporated in Bermuda with Limited Liability).

Source of information:

(1) The Institute of Financial Planners of Hong Kong