Calculate well for a great retirement

Be Smart

Calculate well for a great retirement

Your retirement should be worry-free and we are here to help.
Have you considered compound interest and its rolling effect on your long-term savings? What about your MPF and investment returns? On top of it all, future medical and insurance expenses as well as the inevitable inflation - these are only some of the factors that contributes to your retirement reserve.


At Sun Life Hong Kong, we offer MPF, Savings & Life insurance as well as Medical protection for you to create a comprehensive plan.
Our services and products are well recognized and awarded in in the industry. Below are the Four Pillars of a Total Retirement Solution.

Four Pillars of a
Good Retirement Plan

Click to know more

Long-term Investment Plan smart
Be smart:
Look for disparity in returns
Be prudent:
Choose a value-for-money MPF scheme

Build your savings with compound interest
Be bright:
Use the Power of Time
Be sharp:
Choose an annuity plan to cope with longevity

Guard against uncertainties
Be insightful:
Foresee future trends in society
Be protected:
Choose a comprehensive medical protection plan

Whole Person Wellness Live long and joyfully in body and soul
Be mindful:
Understand what defines a truly happy retirement
Be knowledgeable:
Learn what will help you to be the person you want to be

Sun Life
Total Retirement Solution

Sunny, A Learned Professional

Age 30, Monthly income HKD40K+

Sunny is happily married with his wife, earning a living together. The couple has brought a new member to the family earlier the year. Sunny plans to retire with his wife at the age of 60. After years of hard work, he has managed to accumulate HKD300K in his pocket.

before retirement
Use the power of time: contribute what he can afford when he is young, so he can stop paying in at later stage and enjoy a comfortable retirement.

Annual
contribution
amount
(HKD '000)
100
80
60
40
20
0

Stage 1
(age 30 to 44)
Stage 2
(age 45 to 54)
Stage 3
(age 55 to 59)
after retirement
TVC
Total contribution
HKD 690K
Projected account balance (age 60)1
HKD 1,432K
Projected cumulative growth1
+107%
Remark 1 [+ Expand]

The projected TVC account balance in the above example is calculated based on the assumption that the annualized rate of return net of fees is 4% and does not take into account other factors of MPF investments (e.g. the changes of investment portfolio during the investment period). The above example is based on an assumption with positive returns. Investor should be aware of any situations with negative returns during the investment period. The figures in the above example are hypothetical and for illustration purpose only, and it is not intended to provide any forms of guarantee or investment advice.

General Disclaimer [+ Expand]

This article, which is for informational purposes only, sets forth the views as of the date published. The foregoing information provided is for illustration purpose only. It is not a recommendation to purchase, sell or hold any particular products/funds. The underlying assumptions and these views are subject to change without notice. There is no guarantee that any forecasts expressed will be realized. The information contained in the above article is obtained and/or compiled from sources believed to be reliable and current. The Company cannot and does not warrant, guarantee or represent, either expressly or impliedly, the accuracy, validity or completeness of such information. The Company makes no express or implied warranties or representations with respect to any performance data contained herein (including its accuracy, completeness and timeliness). The Company accepts no liability whatsoever for any direct or indirect consequential loss arising from use of any information, opinion or estimate herein.

Investment involves risks and past performance is not indicative of future performance. Investment return may rise as well as fall. You should read the relevant principal offering document for further details and risk factors prior to making investment decision.

John, A management echelon

Age 40, Monthly income HKD120K

John and his wife, Mary raise a twin together. Mary stays home to take care of the family while John has been the bread-winner ever since they are married. John plans to retire at the age of 60 and that gives him 20 more years to achieve the goal. At this juncture in life, he has already accumulated an asset of 8 million dollars. How can he further secure a retired life of no worry?

before retirement
Use the power of time: contribute what he can afford when he is young, so he can stop paying in at later stage and enjoy a comfortable retirement.

Annual
contribution
amount
(HKD '000)
150
120
90
60
30
0

Monthly contribution of TVC HKD 1,000

Stage 1
(age 40 to 49)
Stage 2
(age 50 to 59)
after retirement
QDAP
Premium payment term: 10 years,
Annuity start age: 60, Annuity period: 15 years
Total premiums paid
HKD 1,200K
Total monthly annuity payment (guaranteed + non-guaranteed) at end of annuity period1
HKD 2,724K
+
TVC
Total contribution
HKD 600K
Projected account balance (age 60)2
HKD 1,683K
Projected cumulative growth2
+180%
Remark 1 [+ Expand]

The example assumes that all Monthly Annuity Payments are distributed to the insured monthly during the Annuity Period. The actual total Monthly Annuity Payment may be higher or lower than the above figures.

The Non-guaranteed Monthly Annuity Payment is determined and payable based on the accumulated Reversionary Bonus. The Non-guaranteed Monthly Annuity Payment as well as the Reversionary Bonus are non-guaranteed and are subject to change from time to time at the sole discretion of Sun Life Hong Kong Limited (“The Company”). They may vary based on the performance of a number of experience factors, with the investment return normally being the main determinant. Other factors include, but are not limited to, claim experience, policy expenses, taxes, and Policy Owner termination experience. If there is any change to Reversionary Bonus and Non-guaranteed Monthly Annuity Payment, total IRR will be affected. Under this plan, withdrawal of any cash value of accumulated Reversionary Bonus is only allowed after the end of premium payment term. After the end of premium payment term, such withdrawal will decrease the face value and cash value of the accumulated Reversionary Bonus, and the future Non-guaranteed Monthly Annuity Payment.

Remark 2 [+ Expand]

The projected TVC account balance in the above example is calculated based on the assumption that the annualized rate of return net of fees is 4% and does not take into account other factors of MPF investments (e.g. the changes of investment portfolio during the investment period). The above example is based on an assumption with positive returns. Investor should be aware of any situations with negative returns during the investment period. The figures in the above example are hypothetical and for illustration purpose only, and it is not intended to provide any forms of guarantee or investment advice.

General Disclaimer [+ Expand]

This article, which is for informational purposes only, sets forth the views as of the date published. The foregoing information provided is for illustration purpose only. It is not a recommendation to purchase, sell or hold any particular products/funds. The underlying assumptions and these views are subject to change without notice. There is no guarantee that any forecasts expressed will be realized. The information contained in the above article is obtained and/or compiled from sources believed to be reliable and current. The Company cannot and does not warrant, guarantee or represent, either expressly or impliedly, the accuracy, validity or completeness of such information. The Company makes no express or implied warranties or representations with respect to any performance data contained herein (including its accuracy, completeness and timeliness). The Company accepts no liability whatsoever for any direct or indirect consequential loss arising from use of any information, opinion or estimate herein.

Investment involves risks and past performance is not indicative of future performance. Investment return may rise as well as fall. You should read the relevant principal offering document for further details and risk factors prior to making investment decision.

Mr. Koo, a family man

Age 45, Monthly income of HKD60K

Mr. Koo lives a life with one single purpose:to provide the best for his loved ones. His wife is dedicated to taking care of their daughter at home 24/7. Mr. Koo has an asset of 4 million dollars already. He plans to work for 15 more years and retire at the age 60. To get the best out the coming years, what can he do to maximize his retirement funds?

before retirement
Use the power of time: contribute what he can afford when he is young, so he can stop paying in at later stage and enjoy a comfortable retirement.

Annual
contribution
amount
(HKD '000)
100
80
60
40
20
0

Monthly contribution of TVC HKD 1,000

Stage 1
(age 45 to 49)
Stage 2
(age 50 to 59)
after retirement
QDAP
Premium payment term: 5 years,
Annuity start age: 60, Annuity period: 20 years
Total premiums paid
HKD 480K
Total monthly annuity payment (guaranteed + non-guaranteed) at end of annuity period1
HKD 1,058K
Remark 1 [+ Expand]

The example assumes that all Monthly Annuity Payments are distributed to the insured monthly during the Annuity Period. The actual total Monthly Annuity Payment may be higher or lower than the above figures.

The Non-guaranteed Monthly Annuity Payment is determined and payable based on the accumulated Reversionary Bonus. The Non-guaranteed Monthly Annuity Payment as well as the Reversionary Bonus are non-guaranteed and are subject to change from time to time at the sole discretion of Sun Life Hong Kong Limited (“The Company”). They may vary based on the performance of a number of experience factors, with the investment return normally being the main determinant. Other factors include, but are not limited to, claim experience, policy expenses, taxes, and Policy Owner termination experience. If there is any change to Reversionary Bonus and Non-guaranteed Monthly Annuity Payment, total IRR will be affected. Under this plan, withdrawal of any cash value of accumulated Reversionary Bonus is only allowed after the end of premium payment term. After the end of premium payment term, such withdrawal will decrease the face value and cash value of the accumulated Reversionary Bonus, and the future Non-guaranteed Monthly Annuity Payment.

General Disclaimer [+ Expand]

This article, which is for informational purposes only, sets forth the views as of the date published. The foregoing information provided is for illustration purpose only. It is not a recommendation to purchase, sell or hold any particular products/funds. The underlying assumptions and these views are subject to change without notice. There is no guarantee that any forecasts expressed will be realized. The information contained in the above article is obtained and/or compiled from sources believed to be reliable and current. The Company cannot and does not warrant, guarantee or represent, either expressly or impliedly, the accuracy, validity or completeness of such information. The Company makes no express or implied warranties or representations with respect to any performance data contained herein (including its accuracy, completeness and timeliness). The Company accepts no liability whatsoever for any direct or indirect consequential loss arising from use of any information, opinion or estimate herein.

Investment involves risks and past performance is not indicative of future performance. Investment return may rise as well as fall. You should read the relevant principal offering document for further details and risk factors prior to making investment decision.

Mary, a freelancer

Age 25, Monthly income HKD25K

Graduated from university years ago, Mary has been dedicated all her time to make money and hopefully own her own property with little help from her parents. In her mind, retirement is a matter that does not concern her in the near future. Yet if she plans ahead and set her retiring age at 65, how can she make the best out of the coming 40 years?

before retirement
Use the power of time: contribute what she can afford when she is young, so she can stop paying in at later stage and enjoy a comfortable retirement.

Annual
contribution
amount
(HKD '000)
100
80
60
40
20
0

Monthly contribution of TVC HKD 1,000

Stage 1
(age 25 to 34)
Stage 2
(age 35 to 44)
Stage 3
(age 45 to 54)
Stage 4
(age 55 to 64)
after retirement
QDAP
Premium payment term: 10 years,
Annuity start age: 65, Annuity period: 35 years
Total premiums paid
HKD 300K
Total monthly annuity payment (guaranteed + non-guaranteed) at end of annuity period1
HKD 1,785K
+
TVC
Total contribution
HKD 660K
Projected account balance (age 65)2
HKD 1,683K
Projected cumulative growth2
+155%
Remark 1 [+ Expand]

The example assumes that all Monthly Annuity Payments are distributed to the insured monthly during the Annuity Period. The actual total Monthly Annuity Payment may be higher or lower than the above figures.

The Non-guaranteed Monthly Annuity Payment is determined and payable based on the accumulated Reversionary Bonus. The Non-guaranteed Monthly Annuity Payment as well as the Reversionary Bonus are non-guaranteed and are subject to change from time to time at the sole discretion of Sun Life Hong Kong Limited (“The Company”). They may vary based on the performance of a number of experience factors, with the investment return normally being the main determinant. Other factors include, but are not limited to, claim experience, policy expenses, taxes, and Policy Owner termination experience. If there is any change to Reversionary Bonus and Non-guaranteed Monthly Annuity Payment, total IRR will be affected. Under this plan, withdrawal of any cash value of accumulated Reversionary Bonus is only allowed after the end of premium payment term. After the end of premium payment term, such withdrawal will decrease the face value and cash value of the accumulated Reversionary Bonus, and the future Non-guaranteed Monthly Annuity Payment.

Remark 2 [+ Expand]

The projected TVC account balance in the above example is calculated based on the assumption that the annualized rate of return net of fees is 4% and does not take into account other factors of MPF investments (e.g. the changes of investment portfolio during the investment period). The above example is based on an assumption with positive returns. Investor should be aware of any situations with negative returns during the investment period. The figures in the above example are hypothetical and for illustration purpose only, and it is not intended to provide any forms of guarantee or investment advice.

General Disclaimer [+ Expand]

This article, which is for informational purposes only, sets forth the views as of the date published. The foregoing information provided is for illustration purpose only. It is not a recommendation to purchase, sell or hold any particular products/funds. The underlying assumptions and these views are subject to change without notice. There is no guarantee that any forecasts expressed will be realized. The information contained in the above article is obtained and/or compiled from sources believed to be reliable and current. The Company cannot and does not warrant, guarantee or represent, either expressly or impliedly, the accuracy, validity or completeness of such information. The Company makes no express or implied warranties or representations with respect to any performance data contained herein (including its accuracy, completeness and timeliness). The Company accepts no liability whatsoever for any direct or indirect consequential loss arising from use of any information, opinion or estimate herein.

Investment involves risks and past performance is not indicative of future performance. Investment return may rise as well as fall. You should read the relevant principal offering document for further details and risk factors prior to making investment decision.

Patrick, a SME owner

Age 35, Monthly income HKD50K

Being a young and ambitious entrepreneur, Patrick runs his own online retail business for years and has successfully accumulated HKD1 million. Good at decision making, he plans for achieving the goal of retirement in 30 years.

before retirement
Use the power of time: contribute what he can afford when he is young, so he can reduce paying in at later stage and enjoy a comfortable retirement.

Annual
contribution
amount
(HKD '000)
100
80
60
40
20
0

Monthly contribution of TVC HKD 1,000

Stage 1
(age 35 to 44)
Stage 2
(age 45 to 54)
Stage 3
(age 55 to 64)
after retirement
QDAP
Premium payment term: 10 years,
Annuity start age: 65, Annuity period: 20 years
Total premiums paid
HKD 300K
Total monthly annuity payment (guaranteed + non-guaranteed) at end of annuity period1
HKD 1,226K
+
TVC
Total contribution
HKD 1,140K
Projected account balance (age 65)2
HKD 2,144K
Projected cumulative growth2
+88%
Remark 1 [+ Expand]

The example assumes that all Monthly Annuity Payments are distributed to the insured monthly during the Annuity Period. The actual total Monthly Annuity Payment may be higher or lower than the above figures.

The Non-guaranteed Monthly Annuity Payment is determined and payable based on the accumulated Reversionary Bonus. The Non-guaranteed Monthly Annuity Payment as well as the Reversionary Bonus are non-guaranteed and are subject to change from time to time at the sole discretion of Sun Life Hong Kong Limited (“The Company”). They may vary based on the performance of a number of experience factors, with the investment return normally being the main determinant. Other factors include, but are not limited to, claim experience, policy expenses, taxes, and Policy Owner termination experience. If there is any change to Reversionary Bonus and Non-guaranteed Monthly Annuity Payment, total IRR will be affected. Under this plan, withdrawal of any cash value of accumulated Reversionary Bonus is only allowed after the end of premium payment term. After the end of premium payment term, such withdrawal will decrease the face value and cash value of the accumulated Reversionary Bonus, and the future Non-guaranteed Monthly Annuity Payment.

Remark 2 [+ Expand]

The projected TVC account balance in the above example is calculated based on the assumption that the annualized rate of return net of fees is 4% and does not take into account other factors of MPF investments (e.g. the changes of investment portfolio during the investment period). The above example is based on an assumption with positive returns. Investor should be aware of any situations with negative returns during the investment period. The figures in the above example are hypothetical and for illustration purpose only, and it is not intended to provide any forms of guarantee or investment advice.

General Disclaimer [+ Expand]

This article, which is for informational purposes only, sets forth the views as of the date published. The foregoing information provided is for illustration purpose only. It is not a recommendation to purchase, sell or hold any particular products/funds. The underlying assumptions and these views are subject to change without notice. There is no guarantee that any forecasts expressed will be realized. The information contained in the above article is obtained and/or compiled from sources believed to be reliable and current. The Company cannot and does not warrant, guarantee or represent, either expressly or impliedly, the accuracy, validity or completeness of such information. The Company makes no express or implied warranties or representations with respect to any performance data contained herein (including its accuracy, completeness and timeliness). The Company accepts no liability whatsoever for any direct or indirect consequential loss arising from use of any information, opinion or estimate herein.

Investment involves risks and past performance is not indicative of future performance. Investment return may rise as well as fall. You should read the relevant principal offering document for further details and risk factors prior to making investment decision.

Ms Wong, a single lady of high net-worth

Age 50, Monthly income of HKD60K

Ms Wong leads a life without any burden of raising children. Throughout the years, she has already accumulated an asset of 3 million dollars under her name. She wants to retire at 70 in 20 years and enjoy annuity returns till age 100. What could she do to achieve that?

before retirement
Use the power of time: contribute what she can afford when she is young, so she can stop paying in at later stage and enjoy a comfortable retirement.

Annual
contribution
amount
(HKD '000)
100
80
60
40
20
0

Monthly contribution of TVC HKD 1,000

Stage 1
(age 50 to 54)
Stage 2
(age 55 to 69)
after retirement
QDAP
Premium payment term: 5 years,
Annuity start age: 70, Annuity period: 30 years
Total premiums paid
HKD 400K
Total monthly annuity payment (guaranteed + non-guaranteed) at end of annuity period1
HKD 1,526K
Remark 1 [+ Expand]

The example assumes that all Monthly Annuity Payments are distributed to the insured monthly during the Annuity Period. The actual total Monthly Annuity Payment may be higher or lower than the above figures.

The Non-guaranteed Monthly Annuity Payment is determined and payable based on the accumulated Reversionary Bonus. The Non-guaranteed Monthly Annuity Payment as well as the Reversionary Bonus are non-guaranteed and are subject to change from time to time at the sole discretion of Sun Life Hong Kong Limited (“The Company”). They may vary based on the performance of a number of experience factors, with the investment return normally being the main determinant. Other factors include, but are not limited to, claim experience, policy expenses, taxes, and Policy Owner termination experience. If there is any change to Reversionary Bonus and Non-guaranteed Monthly Annuity Payment, total IRR will be affected. Under this plan, withdrawal of any cash value of accumulated Reversionary Bonus is only allowed after the end of premium payment term. After the end of premium payment term, such withdrawal will decrease the face value and cash value of the accumulated Reversionary Bonus, and the future Non-guaranteed Monthly Annuity Payment.

General Disclaimer [+ Expand]

This article, which is for informational purposes only, sets forth the views as of the date published. The foregoing information provided is for illustration purpose only. It is not a recommendation to purchase, sell or hold any particular products/funds. The underlying assumptions and these views are subject to change without notice. There is no guarantee that any forecasts expressed will be realized. The information contained in the above article is obtained and/or compiled from sources believed to be reliable and current. The Company cannot and does not warrant, guarantee or represent, either expressly or impliedly, the accuracy, validity or completeness of such information. The Company makes no express or implied warranties or representations with respect to any performance data contained herein (including its accuracy, completeness and timeliness). The Company accepts no liability whatsoever for any direct or indirect consequential loss arising from use of any information, opinion or estimate herein.

Investment involves risks and past performance is not indicative of future performance. Investment return may rise as well as fall. You should read the relevant principal offering document for further details and risk factors prior to making investment decision.


Which should I choose: QDAP or TVC in a MPF scheme?

Both financial tools have their own merits, you might consider build up a combined portfolio according to your own needs, putting money in both of them to enjoy the advantages that each offers.

Qualifying Deferred Annuity Policy (QDAP)

To "add up" your financial reserves for retirement, in addition to choosing from the different investment tools to create your own retirement income, you could also consider a Qualifying Deferred Annuity Policy (QDAP). Not only will this help to create a stable income stream for you, it also offers tax concessions if you are eligible for tax deductions.

TVC in a MPF scheme

To boost your retirement savings efficiently, you could consider Tax Deductible Voluntary Contributions (TVC) in an MPF scheme. This will not only help your retirement plan, but also enable you to enjoy tax savings if you are eligible for tax deductions. So you can have a more worry-free and fruitful retirement.

To "add up" your financial reserves for retirement, in addition to choosing from the different investment tools to create your own retirement income, you could also consider a Qualifying Deferred Annuity Policy (QDAP). Not only will this help to create a stable income stream for you, it also offers tax concessions if you are eligible for tax deductions.

The Insurance Authority (IA) is certifying deferred annuity products that can meet the criteria for a Qualifying Deferred Annuity Policy (QDAP). Starting from April 2019, Hong Kong taxpayers can apply for tax deductions when buying a QDAP. By offering these tax concessions, the Government aims to encourage HK citizens to prepare better for their retirement lives.


Tax Implication of QDAP:

Please note that the tax deduction arrangement under this web page is provided for your reference only and does not necessarily mean you will be eligible for tax deduction available for QDAP premiums you have paid. The tax deduction arrangement under this web page is based on the features of the product as well as certification by the Insurance Authority (“IA”) and not the facts of your own situation. You must also meet all the eligibility requirements set out under the Inland Revenue Ordinance and any guidance issued by the Inland Revenue Department of Hong Kong Special Administrative Region (“IRD”) before you can claim these tax deductions.

Any general tax information provided is for your reference only, and you should not make any tax-related decisions based on such information alone. You should always consult with a professional tax advisor if you have any doubts. Please note that the tax law, regulations or interpretations are subject to change and may affect related tax benefits including the eligibility criteria for tax deduction. Sun Life Hong Kong Limited is not responsible for informing you about any changes in the laws and regulations or interpretations, and how they may affect you.

Please note that only qualifying annuity premiums due and paid during a year of assessment will be eligible for tax deduction for that year of assessment. Subject to IRD’s discretion, all or part of the qualifying annuity premiums paid during the grace period but due in the previous year of assessment may or may not be eligible for tax deduction for that year of assessment. Further information on tax concessions applicable to QDAP may be found at the webpage of IA www.ia.org.hk/en. You may also refer to the website of IRD or contact IRD directly for any tax related enquiries.

If you are interested in purchasing a QDAP product, you should understand the policy features and risks associated with such QDAP product and the relevant risks (including but not limited to the risk of significate financial loss upon early surrender) disclosed in the relevant product brochures provided by different insurers in the market.

Remark:

The above information is based on and compiled with information from sources that is deemed to be reliable, but Sun Life Hong Kong Limited does not guarantee the accuracy or completeness of such information, and will not accept any liability for the information. All information contained in this document is a general guide for reference only, and is not any form of guarantee or professional advice.

The biggest difference is that taxpayers can apply for a tax deduction with a QDAP, but not for an unqualified deferred annuity plan.

To qualify as a QDAP, a plan has to meet a number of requirements: for example, the premium payment period has to be at least 5 years, and the annuitant can only receive the annuity payouts when he/she reaches the age of 50 or above. In addition, the minimum total premium is set at HKD 180,000 and the minimum length of the annuity period is at least 10 years.

Most general annuity plans in the market have no such limitations in the above mentioned areas, and are launched by different insurance companies. If you are interested in an annuity plan, but wish to have more flexibility, such as to pay all the premiums in a lump-sum, or to receive a stable annuity payout before the age of 50, then you can consider other annuity products such as a FlexiRetire Annuity Plan.


Tax Implication of QDAP:

Please note that the tax deduction arrangement under this web page is provided for your reference only and does not necessarily mean you will be eligible for tax deduction available for QDAP premiums you have paid. The tax deduction arrangement under this web page is based on the features of the product as well as certification by the Insurance Authority (“IA”) and not the facts of your own situation. You must also meet all the eligibility requirements set out under the Inland Revenue Ordinance and any guidance issued by the Inland Revenue Department of Hong Kong Special Administrative Region (“IRD”) before you can claim these tax deductions.

Any general tax information provided is for your reference only, and you should not make any tax-related decisions based on such information alone. You should always consult with a professional tax advisor if you have any doubts. Please note that the tax law, regulations or interpretations are subject to change and may affect related tax benefits including the eligibility criteria for tax deduction. Sun Life Hong Kong Limited is not responsible for informing you about any changes in the laws and regulations or interpretations, and how they may affect you.

Please note that only qualifying annuity premiums due and paid during a year of assessment will be eligible for tax deduction for that year of assessment. Subject to IRD’s discretion, all or part of the qualifying annuity premiums paid during the grace period but due in the previous year of assessment may or may not be eligible for tax deduction for that year of assessment. Further information on tax concessions applicable to QDAP may be found at the webpage of IA www.ia.org.hk/en. You may also refer to the website of IRD or contact IRD directly for any tax related enquiries.

If you are interested in purchasing a QDAP product, you should understand the policy features and risks associated with such QDAP product and the relevant risks (including but not limited to the risk of significate financial loss upon early surrender) disclosed in the relevant product brochures provided by different insurers in the market.

Remark:

The above information is based on and compiled with information from sources that is deemed to be reliable, but Sun Life Hong Kong Limited does not guarantee the accuracy or completeness of such information, and will not accept any liability for the information. All information contained in this document is a general guide for reference only, and is not any form of guarantee or professional advice.

A deferred annuity is a kind of long-term insurance product. In general terms, after you make contributions to the insurance company in a lump sum or on an instalment basis, you will receive a stable income from the insurance company in a certain number of years (usually when you have retired) to cover your daily expenses in retirement. A deferred annuity has the following advantages:

  • To help you make a better budget: You receive a regular income (e.g. monthly) from the insurance company within the annuity period, and thus enjoy a stable income stream. This means you can budget your daily expenses based on the amount you receive every month.
  • To help you enjoy greater peace of mind: As life expectancies are getting longer, if you live too long, you might have to spend carefully to avoid using up your savings. Some annuity plans, however, allow for annuity payment periods up to the age of 100. In other words, you would receive a stable income until you are 100, so you don’t have to worry about being too long-lived.
  • To help you make your calculations: Hong Kong taxpayers can apply for a tax deduction through QDAP. The tax amount saved can be used to cover daily expenses, or put into other investment plans, to help you reach your financial goal.

Tax Implication of QDAP:

Please note that the tax deduction arrangement under this web page is provided for your reference only and does not necessarily mean you will be eligible for tax deduction available for QDAP premiums you have paid. The tax deduction arrangement under this web page is based on the features of the product as well as certification by the Insurance Authority (“IA”) and not the facts of your own situation. You must also meet all the eligibility requirements set out under the Inland Revenue Ordinance and any guidance issued by the Inland Revenue Department of Hong Kong Special Administrative Region (“IRD”) before you can claim these tax deductions.

Any general tax information provided is for your reference only, and you should not make any tax-related decisions based on such information alone. You should always consult with a professional tax advisor if you have any doubts. Please note that the tax law, regulations or interpretations are subject to change and may affect related tax benefits including the eligibility criteria for tax deduction. Sun Life Hong Kong Limited is not responsible for informing you about any changes in the laws and regulations or interpretations, and how they may affect you.

Please note that only qualifying annuity premiums due and paid during a year of assessment will be eligible for tax deduction for that year of assessment. Subject to IRD’s discretion, all or part of the qualifying annuity premiums paid during the grace period but due in the previous year of assessment may or may not be eligible for tax deduction for that year of assessment. Further information on tax concessions applicable to QDAP may be found at the webpage of IA www.ia.org.hk/en. You may also refer to the website of IRD or contact IRD directly for any tax related enquiries.

If you are interested in purchasing a QDAP product, you should understand the policy features and risks associated with such QDAP product and the relevant risks (including but not limited to the risk of significate financial loss upon early surrender) disclosed in the relevant product brochures provided by different insurers in the market.

Remark:

The above information is based on and compiled with information from sources that is deemed to be reliable, but Sun Life Hong Kong Limited does not guarantee the accuracy or completeness of such information, and will not accept any liability for the information. All information contained in this document is a general guide for reference only, and is not any form of guarantee or professional advice.

Taxpayers can apply for tax deductions for the qualifying deferred annuity premiums paid for the QDAP. The maximum tax saving per assessment year is HKD 60,000 (HKD 60,000 is the aggregated maximum limit of the total tax savings allowed for QDAP and TVC) per person. Based on the prevailing highest tax rate (i.e. 17%) for salaries tax/personal assessment, the maximum tax savings can reach HKD 10,200.

If this suits your personal or family needs, you could consider purchasing different kinds of annuity products or even other tax deductible financial products, to increase your protection as well as to utilise the tax deduction quota: The HKD 60,000 mentioned above is a shared quota among QDAP and TVC per taxpayer per assessment year. In other words, a taxpayer can claim tax deductions for the qualifying deferred annuity premiums and the contributions made to the TVC.

Tax Implication of QDAP:

Please note that the tax deduction arrangement under this web page is provided for your reference only and does not necessarily mean you will be eligible for tax deduction available for QDAP premiums you have paid. The tax deduction arrangement under this web page is based on the features of the product as well as certification by the Insurance Authority (“IA”) and not the facts of your own situation. You must also meet all the eligibility requirements set out under the Inland Revenue Ordinance and any guidance issued by the Inland Revenue Department of Hong Kong Special Administrative Region (“IRD”) before you can claim these tax deductions.

Any general tax information provided is for your reference only, and you should not make any tax-related decisions based on such information alone. You should always consult with a professional tax advisor if you have any doubts. Please note that the tax law, regulations or interpretations are subject to change and may affect related tax benefits including the eligibility criteria for tax deduction. Sun Life Hong Kong Limited is not responsible for informing you about any changes in the laws and regulations or interpretations, and how they may affect you.

Please note that only qualifying annuity premiums due and paid during a year of assessment will be eligible for tax deduction for that year of assessment. Subject to IRD’s discretion, all or part of the qualifying annuity premiums paid during the grace period but due in the previous year of assessment may or may not be eligible for tax deduction for that year of assessment. Further information on tax concessions applicable to QDAP may be found at the webpage of IA www.ia.org.hk/en. You may also refer to the website of IRD or contact IRD directly for any tax related enquiries.

If you are interested in purchasing a QDAP product, you should understand the policy features and risks associated with such QDAP product and the relevant risks (including but not limited to the risk of significate financial loss upon early surrender) disclosed in the relevant product brochures provided by different insurers in the market.

Remark:

The above information is based on and compiled with information from sources that is deemed to be reliable, but Sun Life Hong Kong Limited does not guarantee the accuracy or completeness of such information, and will not accept any liability for the information. All information contained in this document is a general guide for reference only, and is not any form of guarantee or professional advice.

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TVC in an MPF scheme are a new kind of MPF contribution. Holders of contribution accounts (except Special Voluntary Contribution accounts) or personal accounts in MPF schemes; or members of MPF Exempted ORSO Schemes are eligible to make TVC. The above scheme members can open TVC accounts in an MPF scheme that offers TVC and make contributions directly to their account starting from 1 April 2019.

Tax Implication of QDAP:

Please note that the tax deduction arrangement under this web page is provided for your reference only and does not necessarily mean you will be eligible for tax deduction available for QDAP premiums you have paid. The tax deduction arrangement under this web page is based on the features of the product as well as certification by the Insurance Authority (“IA”) and not the facts of your own situation. You must also meet all the eligibility requirements set out under the Inland Revenue Ordinance and any guidance issued by the Inland Revenue Department of Hong Kong Special Administrative Region (“IRD”) before you can claim these tax deductions.

Any general tax information provided is for your reference only, and you should not make any tax-related decisions based on such information alone. You should always consult with a professional tax advisor if you have any doubts. Please note that the tax law, regulations or interpretations are subject to change and may affect related tax benefits including the eligibility criteria for tax deduction. Sun Life Hong Kong Limited is not responsible for informing you about any changes in the laws and regulations or interpretations, and how they may affect you.

Please note that only qualifying annuity premiums due and paid during a year of assessment will be eligible for tax deduction for that year of assessment. Subject to IRD’s discretion, all or part of the qualifying annuity premiums paid during the grace period but due in the previous year of assessment may or may not be eligible for tax deduction for that year of assessment. Further information on tax concessions applicable to QDAP may be found at the webpage of IA www.ia.org.hk/en. You may also refer to the website of IRD or contact IRD directly for any tax related enquiries.

The above information is based on and compiled with information from sources that is deemed to be reliable, but Sun Life Hong Kong Limited does not guarantee the accuracy or completeness of such information, and will not accept any liability for the information. All information contained in this document is a general guide for reference only, and is not any form of guarantee or professional advice.

The foregoing information provided is for illustration purpose only. It is not a

Generally speaking, there are three different types of MPF voluntary contributions for employees to choose from, namely (1) Employee Voluntary Contributions (2) Special Voluntary Contributions; and (3) TVC

  1. Employee Voluntary Contributions: Voluntary contributions made to the MPF scheme selected by employers, are deducted from salaries and are not tax deductible. Contributions can usually be withdrawn after terminating the employment.
  2. Special Voluntary Contributions: Members who select their own MPF scheme and open separate accounts can make their own Special Voluntary Contributions. The arrangements for both contributions and withdrawals are more flexible, but still not tax deductible.
  3. TVC: Members who select their own MPF scheme and open separate TVC accounts can make their own contributions. The arrangement is more flexible and is tax deductible (up to a maximum deductible quota). But, just as for the mandatory contributions, the accumulated amounts in the TVC accounts can only be withdrawn when the holder reaches the age of 65 (or on other statutory grounds).

Tax Implication of QDAP:

Please note that the tax deduction arrangement under this web page is provided for your reference only and does not necessarily mean you will be eligible for tax deduction available for QDAP premiums you have paid. The tax deduction arrangement under this web page is based on the features of the product as well as certification by the Insurance Authority (“IA”) and not the facts of your own situation. You must also meet all the eligibility requirements set out under the Inland Revenue Ordinance and any guidance issued by the Inland Revenue Department of Hong Kong Special Administrative Region (“IRD”) before you can claim these tax deductions.

Any general tax information provided is for your reference only, and you should not make any tax-related decisions based on such information alone. You should always consult with a professional tax advisor if you have any doubts. Please note that the tax law, regulations or interpretations are subject to change and may affect related tax benefits including the eligibility criteria for tax deduction. Sun Life Hong Kong Limited is not responsible for informing you about any changes in the laws and regulations or interpretations, and how they may affect you.

Please note that only qualifying annuity premiums due and paid during a year of assessment will be eligible for tax deduction for that year of assessment. Subject to IRD’s discretion, all or part of the qualifying annuity premiums paid during the grace period but due in the previous year of assessment may or may not be eligible for tax deduction for that year of assessment. Further information on tax concessions applicable to QDAP may be found at the webpage of IA www.ia.org.hk/en. You may also refer to the website of IRD or contact IRD directly for any tax related enquiries.

The above information is based on and compiled with information from sources that is deemed to be reliable, but Sun Life Hong Kong Limited does not guarantee the accuracy or completeness of such information, and will not accept any liability for the information. All information contained in this document is a general guide for reference only, and is not any form of guarantee or professional advice.

The foregoing information provided is for illustration purpose only. It is not a recommendation to purchase, sell or hold any particular products/funds.

All you need to do is to open a TVC account in your preferred MPF scheme with TVC account available. The procedure is very simple and does not need to be arranged by your employer.

There is no minimum limit on tax deductible contributions (subject to the scheme rule), it’s all up to the individual. You can also raise or lower the amount of your contribution, stop or resume contributions at any time and thus enjoy a high degree of flexibility.

Tax Implication of QDAP:

Please note that the tax deduction arrangement under this web page is provided for your reference only and does not necessarily mean you will be eligible for tax deduction available for QDAP premiums you have paid. The tax deduction arrangement under this web page is based on the features of the product as well as certification by the Insurance Authority (“IA”) and not the facts of your own situation. You must also meet all the eligibility requirements set out under the Inland Revenue Ordinance and any guidance issued by the Inland Revenue Department of Hong Kong Special Administrative Region (“IRD”) before you can claim these tax deductions.

Any general tax information provided is for your reference only, and you should not make any tax-related decisions based on such information alone. You should always consult with a professional tax advisor if you have any doubts. Please note that the tax law, regulations or interpretations are subject to change and may affect related tax benefits including the eligibility criteria for tax deduction. Sun Life Hong Kong Limited is not responsible for informing you about any changes in the laws and regulations or interpretations, and how they may affect you.

Please note that only qualifying annuity premiums due and paid during a year of assessment will be eligible for tax deduction for that year of assessment. Subject to IRD’s discretion, all or part of the qualifying annuity premiums paid during the grace period but due in the previous year of assessment may or may not be eligible for tax deduction for that year of assessment. Further information on tax concessions applicable to QDAP may be found at the webpage of IA www.ia.org.hk/en. You may also refer to the website of IRD or contact IRD directly for any tax related enquiries.

The above information is based on and compiled with information from sources that is deemed to be reliable, but Sun Life Hong Kong Limited does not guarantee the accuracy or completeness of such information, and will not accept any liability for the information. All information contained in this document is a general guide for reference only, and is not any form of guarantee or professional advice.

The foregoing information provided is for illustration purpose only. It is not a recommendation to purchase, sell or hold any particular products/funds.

The whole idea of the MPF system is to encourage working people to make regular monthly contributions leveraging the effect of dollar cost averaging to be better prepared for their retirement. You should understand the advantages of the MPF scheme and consider making extra voluntary contributions on top of your mandatory contributions to achieve your retirement goals earlier.

  • To help you grasp the opportunity: Compared to most retail fund products in the market, the MPF allows working people to make small investments in one or more funds and change their investment portfolio at any time they wish. There are no bid-ask spreads, and no extra charges for changing investment instructions or redeeming funds1.
  • To help you maintain flexibility: You can raise or lower the amount of your contributions, stop or resume your contributions at any time, and even transfer all your contributions to another TVC accounts under other MPF schemes. This allows you to make adjustments in case of changes to your income and the investment market situation.
  • To help you make smarter calculations: The TVC you made are tax deductible. The money you save from these tax concession can be used to help cover your daily expenses, or put into other investment plans to achieve your savings goals earlier.

1http://www.mpfa.org.hk/tch/information_centre/blog/190407.jsp

Tax Implication of QDAP:

Please note that the tax deduction arrangement under this web page is provided for your reference only and does not necessarily mean you will be eligible for tax deduction available for QDAP premiums you have paid. The tax deduction arrangement under this web page is based on the features of the product as well as certification by the Insurance Authority (“IA”) and not the facts of your own situation. You must also meet all the eligibility requirements set out under the Inland Revenue Ordinance and any guidance issued by the Inland Revenue Department of Hong Kong Special Administrative Region (“IRD”) before you can claim these tax deductions.

Any general tax information provided is for your reference only, and you should not make any tax-related decisions based on such information alone. You should always consult with a professional tax advisor if you have any doubts. Please note that the tax law, regulations or interpretations are subject to change and may affect related tax benefits including the eligibility criteria for tax deduction. Sun Life Hong Kong Limited is not responsible for informing you about any changes in the laws and regulations or interpretations, and how they may affect you.

Please note that only qualifying annuity premiums due and paid during a year of assessment will be eligible for tax deduction for that year of assessment. Subject to IRD’s discretion, all or part of the qualifying annuity premiums paid during the grace period but due in the previous year of assessment may or may not be eligible for tax deduction for that year of assessment. Further information on tax concessions applicable to QDAP may be found at the webpage of IA www.ia.org.hk/en. You may also refer to the website of IRD or contact IRD directly for any tax related enquiries.

The above information is based on and compiled with information from sources that is deemed to be reliable, but Sun Life Hong Kong Limited does not guarantee the accuracy or completeness of such information, and will not accept any liability for the information. All information contained in this document is a general guide for reference only, and is not any form of guarantee or professional advice.

The foregoing information provided is for illustration purpose only. It is not a recommendation to purchase, sell or hold any particular products/funds.

Hong Kong taxpayers can claim tax deductions through TVC in an MPF scheme up to a cap of HKD 60,000 for the year of assessment of 2019/2020. Based on the prevailing highest tax rate (i.e. 17%) for salaries tax/personal assessments, the maximum tax savings could reach HKD 10,200 for the year of assessment of 2019/2020.

To utilise the tax deductible quota, you could also consider purchasing a Qualifying Deferred Annuity Policy along with your TVC. The HKD 60,000 mentioned above is a shared quota among QDAP and TVC. In other words, a taxpayer can claim tax deductions for the premiums paid for the Qualifying Deferred Annuity Policy, and the TVC. The total maximum tax deductions for the year of assessment of 2019/2020 is HKD 60,000.

Tax Implication of QDAP:

Please note that the tax deduction arrangement under this web page is provided for your reference only and does not necessarily mean you will be eligible for tax deduction available for QDAP premiums you have paid. The tax deduction arrangement under this web page is based on the features of the product as well as certification by the Insurance Authority (“IA”) and not the facts of your own situation. You must also meet all the eligibility requirements set out under the Inland Revenue Ordinance and any guidance issued by the Inland Revenue Department of Hong Kong Special Administrative Region (“IRD”) before you can claim these tax deductions.

Any general tax information provided is for your reference only, and you should not make any tax-related decisions based on such information alone. You should always consult with a professional tax advisor if you have any doubts. Please note that the tax law, regulations or interpretations are subject to change and may affect related tax benefits including the eligibility criteria for tax deduction. Sun Life Hong Kong Limited is not responsible for informing you about any changes in the laws and regulations or interpretations, and how they may affect you.

Please note that only qualifying annuity premiums due and paid during a year of assessment will be eligible for tax deduction for that year of assessment. Subject to IRD’s discretion, all or part of the qualifying annuity premiums paid during the grace period but due in the previous year of assessment may or may not be eligible for tax deduction for that year of assessment. Further information on tax concessions applicable to QDAP may be found at the webpage of IA www.ia.org.hk/en. You may also refer to the website of IRD or contact IRD directly for any tax related enquiries.

The above information is based on and compiled with information from sources that is deemed to be reliable, but Sun Life Hong Kong Limited does not guarantee the accuracy or completeness of such information, and will not accept any liability for the information. All information contained in this document is a general guide for reference only, and is not any form of guarantee or professional advice.

The foregoing information provided is for illustration purpose only. It is not a recommendation to purchase, sell or hold any particular products/funds.

Eligible members can open a TVC account in their preferred MPF scheme with a TVC account available at any time from 1 April 2019 to 31 March 2020. They can then claim a tax deduction for the year of assessment of 2019/2020. Since there is still some time from the first claiming year of assessment, and the TVC is a new arrangement, working people should spend some time learning about their own financial needs and choose an MPF scheme and contribution amounts that best fit their individual situations. You only need to open a TVC account successfully on or before March 21, 2020. Then you can catch up later for the year of assessment of 2019/2020 to apply for a tax deduction.

After the year of assessment of 2019/2020 ends, the trustee will send the TVC summaries to its members, so they can use that to apply for their tax deductions when filling in their tax returns.

Tax Implication of QDAP:

Please note that the tax deduction arrangement under this web page is provided for your reference only and does not necessarily mean you will be eligible for tax deduction available for QDAP premiums you have paid. The tax deduction arrangement under this web page is based on the features of the product as well as certification by the Insurance Authority (“IA”) and not the facts of your own situation. You must also meet all the eligibility requirements set out under the Inland Revenue Ordinance and any guidance issued by the Inland Revenue Department of Hong Kong Special Administrative Region (“IRD”) before you can claim these tax deductions.

Any general tax information provided is for your reference only, and you should not make any tax-related decisions based on such information alone. You should always consult with a professional tax advisor if you have any doubts. Please note that the tax law, regulations or interpretations are subject to change and may affect related tax benefits including the eligibility criteria for tax deduction. Sun Life Hong Kong Limited is not responsible for informing you about any changes in the laws and regulations or interpretations, and how they may affect you.

Please note that only qualifying annuity premiums due and paid during a year of assessment will be eligible for tax deduction for that year of assessment. Subject to IRD’s discretion, all or part of the qualifying annuity premiums paid during the grace period but due in the previous year of assessment may or may not be eligible for tax deduction for that year of assessment. Further information on tax concessions applicable to QDAP may be found at the webpage of IA www.ia.org.hk/en. You may also refer to the website of IRD or contact IRD directly for any tax related enquiries.

The above information is based on and compiled with information from sources that is deemed to be reliable, but Sun Life Hong Kong Limited does not guarantee the accuracy or completeness of such information, and will not accept any liability for the information. All information contained in this document is a general guide for reference only, and is not any form of guarantee or professional advice.

The foregoing information provided is for illustration purpose only. It is not a recommendation to purchase, sell or hold any particular products/funds.

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How can a retirement plan
be well formulated?


Retirement Plans At A Glance

Retirement Plans
At A Glance

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Sunny, A Learned Professional

Age 30, Monthly income HKD40K
Set retiring age at 60


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John, A management echelon

Age 40, Monthly income HKD120K
Set retiring age at 60


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Mr. Koo, a family man

Age 45, Monthly income of HKD60K
Set retiring age at 60


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Mary, a freelancer

Age 25, Monthly income HKD25K
Set retiring age at 65


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Ms Wong, a single lady of high net-worth

Age 55, Monthly income of HKD60K
Set retiring age at 70


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Patrick, a SME owner

Age 35, Monthly income HKD50K
Set retiring age at 65


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Types of life insurance:

Foresight Deferred Annuity Plan

Foresight Deferred Annuity Plan

Benefit Term: Up to age 100

  • Offer stable income stream
  • With flexible plan options
  • Eligible for tax deduction
Foresight Deferred Annuity Plan
FlexiRetire Annuity Plan

FlexiRetire Annuity Plan

Benefit Term: To age 100

  • Flexible plan options
  • Provides Monthly Income
  • Simplified underwriting
FlexiRetire Annuity Plan
Vision

Vision

Benefit Term : To age 120 or 120 years since policy issue

  • 3 types of premium
    payment mode
  • Offers Monthly Coupon
Vision
Commitment

Commitment

Accumulation Term 10-35 years

  • 2 settlement options
  • Policy Continuation
    Benefit
Commitment

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