Life annuity scheme launched for Hong Kong's senior citizens

Men will receive a monthly payout of $5,800 whilst women get $5,300.

HKMC Annuity, a wholly-owned unit of the Hong Kong Mortgage Corporation, has rolled out HKMC Annuity Plan to offer permanent residents aged 65 and above a way to convert a portion of their savings into stable income streams.

Those under the plan can immediately receive a guaranteed stream of fixed income after paying a single premium between $50,000 and $1m, according to a government statement.

Men will receive a monthly payout of $5,800 whilst women will get $5,300 for the rest of their lives upon a premium payment of $1m.

“Since the Annuity Plan was announced last year, the feedback from the community has been very positive. I am glad to announce that if there is an oversubscription of the Plan by the public, the HKMCA is prepared to double the first tranche quota from currently HK$10 billion to HK$20 billion,” financial secretary Paul Chan said in a statement.

The Hong Kong Monetary Authority will provide the necessary capital requirements and will invest and manage the premium received by the HKMCA.

Applicants will receive the allotment results in succession from mid-September, and sales meetings will be arranged to complete the application procedures.

The distribution channel covers a total of 20 retail banks including Bank of China (Hong Kong), Bank of Communications, China CITIC Bank, China Construction Bank, Chiyu Banking Corporation, Chong Hing Bank, Citibank (Hong Kong), Dah Sing Bank, DBS Bank (Hong Kong), Fubon Bank (Hong Kong), Hang Seng Bank, ICBC, Nanyang Commercial Bank, OCBC Wing Hang Bank, Public Bank (Hong Kong), Shanghai Commercial Bank, Standard Chartered (Hong Kong), The Bank of East Asia, HSBC and Wing Lung Bank.