[Finance Wiz@Daniel] Learn about qualifying deferred annuity policies (QDAPs) and secure your future!
Finance2024-04-15
5 Mins Read
Retirement seems like a distant dream for many, perhaps even unattainable. Yet, precisely because retirement still feels far off in your twenties and thirties, it's crucial to recognise your greatest assets: time and a stable income. By laying a solid foundation early on and embarking on a journey of wealth accumulation, you can pave the way for the high-quality retirement lifestyle you desire.
In recent times, the buzz around ‘qualifying deferred annuity policies’ has become increasingly prevalent. This financial tool serves as the cornerstone for building a secure retirement future. But just how familiar are you with the perks of qualifying deferred annuity policies? Today, allow me, Lau Sir, to shed some light on the topic!
IncomeBliss Deferred Annuity Plan
Earn more with monthly annuity. Save more on taxes annually. Enjoy up to HKD60,000 tax deduction limit^ upon successful application for 'IncomeBliss'.
Understanding qualifying deferred annuity policies and immediate annuity products
The qualifying deferred annuity policy represents a type of savings life product. At its core, it aims to transform available funds into a source of long-term, stable passive income post-retirement, aptly termed ‘self-made long-term income.’ Through consistent premium payments, funds are accumulated and rolled over, enabling individuals to commence the annuity period at a specified age. Subsequently, they receive annuity income to safeguard their living expenses during retirement.
Alongside qualifying deferred annuity policies, there is also an immediate annuity product available in the market. One big difference between the two lies in the premium payment terms of qualifying deferred annuity policies, typically spanning 5 to 10 years. This setup allows for the rolling over of funds during the accumulation phase and policyholders can start receiving monthly annuity payments as early as age 50ᘁ. Moreover, qualifying policies may be eligible for tax deductions^. In contrast, immediate annuities necessitate a lump sum premium payment, with annuity income commencing in the subsequent month following successful insurance enrollment.
【IncomeBliss Deferred Annuity Plan】Enjoy up to HKD60,000 tax deduction limit^ upon successful application for 'IncomeBliss'.
Benefits and advantages of qualifying deferred annuity policies
1. Secure retirement income
According to forecasts from the Government Census and Statistics Department, by 2041, individuals aged 60 and above will make up a third of Hong Kong's total population. This demographic shift will drive up demand for medical and elderly care services, indirectly escalating retirement costs. Qualifying deferred annuity policies furnish policyholders with a reliable retirement income source, alleviating the anxieties associated with post-retirement life. Policyholders have the flexibility to commence receiving annuities as early as age 50ᘁ, catering to daily living expenses and other financial commitments.
2. Long-term financial management impacts
As a tool for long-term financial management, deferred annuities channel investments into high-quality bonds, private equity funds, and stocks. This diversified investment portfolio serves as a potential bulwark against inflation. Policyholders may anticipate higher potential returns in the future, mitigating the impact of escalating prices and heightened living expenses. This enables policyholders to uphold a certain standard of living post-retirement.
3. Tax perks
The Hong Kong government extends tax deductions to taxpayers who opt for accredited deferred annuity policies to incentivise early retirement planning. With an annual tax deduction limit of up to HK$60,000, individuals can redirect the income tax they'd otherwise shell out into their annuity schemes, leading to a stable passive income in retirement. Additionally, qualifying deferred annuity policies offer dementia advance benefit and life protection, ensuring that in the unfortunate event of the policyholder's demise, the protection won't fall short of the entire premium paid, giving both the policyholder and their family members a peace of mind.
【IncomeBliss Deferred Annuity Plan】Enjoy up to HKD60,000 tax deduction limit^ upon successful application for 'IncomeBliss'.
Product Highlights of the IncomeBliss Deferred Annuity Plan (‘IncomeBliss’)
Discover the standout features of AXA IncomeBliss Deferred Annuity Plan:
- Create long-term income: Secure stable monthly income starting from the age of 50ᘁ for a duration of up to 20 years+.
- Family protection: Ensure your family's financial security with life protection and dementia advance benefit, offering peace of mind for the future.
- Hassle-free tax savings: Enjoy up to HKD60,000 tax deductions limit^, making it easier to manage your finances.
- Yearly discounts: Offer 5% premium discount every policy year, a total premium discount up to 50% of annual premium*.
- Currency options: Choose between US dollar and Hong Kong dollar policy currencies, providing flexibility to suit your preferences.
- Limited-time offer: Take advantage of our exclusive limited-time offer! By successfully applying for IncomeBliss Deferred Annuity Plan, you can exclusively enroll for the 5-Year GoalSaver#, enjoying up to 4.8% p.a. guaranteed return upon maturity**.
When discussing retirement, certain keywords like ‘freedom,’ ‘joy,’ and ‘fulfillment’ often come to mind. However, the crux of achieving these aspirations lies in prudent saving.
In addition to enrolling in the IncomeBliss Deferred Annuity Plan, you can also opt for AXA's latest offering, the time-limited 5-Year GoalSaver#! By allocating a portion of your assets to this short-term savings scheme, policyholders can lock in attractive interest rates. Moreover, complementing this with our qualifying deferred annuity plan allows you to not only witness asset growth but also benefit from tax deductions^. By steadily accumulating savings, you're laying a robust foundation for your future retirement, ensuring financial security and peace of mind.
Watch the clip and learn more about qualifying deferred annuity policies.
Different insurance plans vary in coverage, and terms and conditions apply. Please refer to the product brochure and policy for product coverage.
ᘁApplies only to policies issued to customers aged 18 to 40.
+After the accumulation period, customer can receive monthly annuity payments for a duration of up to 20 years. Please refer to the relevant product brochure for details.
^HKD60,000 is the maximum tax deductions per taxpayer per year for qualifying annuity premiums and MPF tax deductible voluntary contributions. For details on tax deductions, please visit the website of Inland Revenue Department (IRD) of HKSAR or contact IRD for tax related enquiries.
*Applicable to policy with a premium payment term of 10 years and subject to terms and conditions. Please refer to product brochure and promotional leaflet for more details.
#5-Year GoalSaver is a limited offer and acceptance of your policy application is subject to product availability at the time of application. We reserve the right to decline the application of 5-Year GoalSaver at any time. Each person can apply for one policy only since 2 April 2024, either as a policy owner or insured.
**Based on specific assumptions and subject to terms and conditions, please refer to the relevant product brochure and promotional leaflet for details.
The above content is reviewed by Mr Daniel Lau - Head of Wealth Management Training of AXA Hong Kong and Macau.
No warranty or responsibility is assumed by AXA Hong Kong and our related or holding companies regarding non-infringement, security, accuracy, completeness, adequacy, reasonableness, fitness for a purpose or free from computer viruses in connection with the information and materials provided. AXA Hong Kong and our related companies and holding companies do not accept any liability for any loss, damage, cost or other expense, whether wholly or partially, directly or indirectly, arising from any error, inaccuracy or omission of the information and materials to the extent that such liability is not excluded by law.
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IncomeBliss Deferred Annuity Plan
Earn more with monthly annuity. Save more on taxes annually. Enjoy up to HKD60,000 tax deduction limit^ upon successful application for 'IncomeBliss'.
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