Retirees advised not to depend on annuity plan

Local | 6 Jul 2018 12:22 pm

A financial planner has cautioned elderly people to think carefully before deciding whether to join the public annuity plan, that would allow permanent residents aged 65 or above to invest a lump sum in exchange for a guaranteed monthly income for life.

HKMC Annuity – the government agency that will run the scheme – said yesterday that successful applicants can expect a monthly payment ranging from HK$5,300 to HK$7,360.

But Chris Tse from the Institute of Financial Planners said that people who are thinking of joining the scheme shouldn't consider this as their sole retirement plan. He said it should be only a part of their overall plan for future.

He said people interested in the scheme should not be looking at this as an investment and hoping for high returns, but rather treat it as a way to generate a guaranteed, fixed income.

Tse also told RTHK's Janice Wong that people who plan to join also must make sure that they have enough cash flow to deal with unexpected events.

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