With an ageing population and rising medical and living costs in Hong Kong, coupled with the impact of the unstable global economy and its effect on the performance of MPF returns, even for an elderly person with savings, the MPF alone is not enough to cope with daily life and sometimes huge expenses after retirement. Hence, AXA Hong Kong commissioned market research firm YouGov to conduct an online survey of 1,013 Hong Kong people aged 18 or above in April this year to learn about their views and expectations when planning for retirement life.
The concept of raising children for preparing retirement is outdated | Over one-quarter of Hong Kong parents still financially support their adult children
According to the survey data, over two-thirds of respondents (67%) believe that the concept of raising children for preparing retirement is outdated. In addition, more than one-quarter (26%) of the parents who were born in the 1960s and 1970s have provided or will continue to provide monthly living expenses for their adult non-school children. Nearly one in ten (9%) of parents also pay the down payment for a new flat for their children, reflecting that Hong Kong parents are still taking financial care of their adult children. As for the group who were born in the 1980s and 1990s, more than half (55%) lack confidence in having enough retirement savings, and nearly 40% (39%) said that they might become a burden on their children in the future.
Retirement preparation falls short of expectation | An annuity plan can help fill the gap
The survey found that Hong Kong people need around HKD4.5million to afford retirement living. Yet, the median of their current individual total assets is only HKD750,000, which is HKD3.75million deviation from the expected amount for retirement. In addition, 35%, 41% and 72% of those who were born in the 1970s, 1980s and 1990s respectively have an individual total asset value of less than HK$250,000, reflecting that Hong Kong people generally do not have sufficient liquid assets to afford retirement living. Hence, Hong Kong people should prepare earlier for retirement in order to afford the huge expenses for retirement.
Therefore, AXA Hong Kong is launching the ‘IncomePartner Deferred Annuity Plan’, which is a Qualifying Deferred Annuity Policy (“QDAP”) certified by the Insurance Authority. It aims to provide an option with a stable income after retirement for Hong Kong citizens, with a strong commitment from AXA to being a life partner to cater for the needs of its customers.
‘The survey has revealed the different views on retirement planning across generations. Some middle-aged parents need to prepare for their own retirement while taking care of their adult children. Hence, the young generations need to prepare for their retirement lives earlier to avoid being a burden on their parents. AXA now launches the ‘IncomePartner Deferred Annuity Plan’ which provides more flexibility for customers. This plan covers a very wide range of issue age, with flexibility in deferring the start of the annuity period and a capital guaranteed return upon maturity. With additional protection, upside potential returns and a stable income, AXA helps to secure your golden years just the way you want,’ said Mr Kevin Chor, Chief Life Product & Commercial Development Officer of AXA Hong Kong and Macau.
Accumulate wealth with upside potential returns: Capital guaranteed return upon maturity
In addition to the stable monthly guaranteed annuity payment, the annuitant can enjoy the upside potential returns. The return of ‘IncomePartner Deferred Annuity Plan’ is capital guaranteed upon maturity, allowing the annuitants to pursue their dreams and enjoy their golden years.
Flexible and self-scheduled retirement plan: Wider issue age range and flexibility to defer the annuity start age
There is a misconception that the annuity plan is only suitable for the elderly. In fact, the guaranteed component of an annuity plan is relatively high and stable, without the constant need to monitor market changes and avoiding the volatility of the stock market, and is thus highly suitable as a saving instrument, especially for younger customers who may have no savings or lack financial planning. The ‘IncomePartner Deferred Annuity Plan’ covers a wider range of issue age from age 18 to 65 and offers flexible retirement plans catering to individual needs. The annuitant can choose a premium payment term of 5 or 10 years and an annuity period of 10 or 20 years, and the annuity start age can be as early as 50 years old. Furthermore, if the annuitant wishes to defer his or her retirement, they can postpone the start of the income stream up to age 75.
Quadruple Security with extra and optional protection: Death benefits up to 120% of the total premiums paid
The ‘IncomePartner Deferred Annuity Plan’ provides death benefits up to 120% of the total premiums paid, so that the annuitant can also enjoy comprehensive protection. Other product features include:
- Complimentary extended grace period benefit: If the annuitant is laid off or made redundant, he or she can apply for an extension of the premium payment grace period up to 365 days.
- Terminal illness benefit: If the annuitant is first diagnosed as suffering from terminal illness, the plan will pay the death benefits to the annuitant in advance.
- Optional protection: Optional supplements including accident protection up to USD62,500 with the first three years’ premium waived.
To know more about the ‘IncomePartner Deferred Annuity Plan’, please visit: https://www.axa.com.hk/en/incomepartner-deferred-annuity-plan
The above information is for reference only. For details on product features, content, terms and exclusions, please refer to the relevant product manual.
 The total value of individual assets refers to savings, investments, shares, stocks and option holdings in the company the individual works for, properties the individual owns, works of art and other collectible items, pension funds or MPF if the individual is retired. It excludes the value of the primary residence that the individual lives in, own businesses, pension funds or MPF if the individual is not retired.
 Only applicable to policies with issue age of 18-40.
 Written application should be made and submitted to defer the annuity start date or make subsequent changes to the number of deferral year and such request is subject to the Company’s administrative rules and approval. The maturity date will be adjusted based on the new annuity start date.
 Eligibility for the extended grace period benefit is subject to certain criteria and exceptions. The policy owner must provide the relevant evidence to the Company. The extended grace period benefit can be claimed once only under the policy. Please refer to the policy contract for further details.
 Eligibility for the terminal illness benefit is subject to certain criteria and exceptions. The benefit payment under this terminal illness benefit is equivalent to the amount of death benefit payable under the basic plan as if the annuitant died on the date of first diagnosis of the terminal illness. Once this terminal illness benefit becomes payable, the policy shall be automatically terminated.
 Annuitant of IncomePartner is entitled to Accident Protector First 3 Years Free Supplement provided that the annuitant is not covered by the same supplement or Accident Protector (1st) Year Free Supplement prior to the application of IncomePartner. Each annuitant is entitled to the supplement only once in a lifetime. The application for the supplement is subject to the relevant terms and conditions of the supplement, and the administrative rules and underwriting requirements of AXA.