“Retirement” is supposed to be a fruitful result of a busy life. However, many people cannot enjoy a worry-free retirement. Some people even think that retirement is an unreachable dream. After all, insufficient retirement savings is the root cause. The aging trend of Hong Kong population continues. The average life expectancy for Hong Kong people is more than 80 years old. With facing long-term retirement living expenses, cost of inflation and medical fees, we should plan ahead to have a comprehensive retirement plan in order to achieve a worry-free retirement.
To encourage the working population developing a saving habit and plan ahead for their retirement, the Hong Kong government has passed the legislation1 to provide tax benefits to members who make tax deductible voluntary contributions (“TVC”) with effect from 1 April 2019.