Hong Kong retirees aged 65 years or above can register to subscribe to the new life annuity plan from next Thursday to August 8.
The Hong Kong Mortgage Corporation launched the life annuity scheme today, called the “HKMC Annuity Plan,” which HKMC says allows retirees to generate life-long income from a part of their savings.
The annuity plan is an insurance product. The minimum premium is HK$50,000 and the maximum is HK$1 million.
The insured can immediately receive a guaranteed fixed income after paying a single premium. The annuity is payable monthly for the whole of life of the insured, the HKMC said.
A retiree can expect a monthly payout of between HK$500 and HK$580 for every HK$100,000 premium paid.
Forms for the subscriptions can be obtained from Monday, the HKMC says. They can be submitted from July 19 to August 8.
The plan will be distributed through 20 retail banks that have about 700 branches.
Applicants will be notified of allotment result from mid-September, and will be asked to attend the sales meetings to complete the application procedures. A financial needs analysis will be done during the sales meeting.