Retirement Planner

Disclaimer

Your privacy and trust is important to us. The following retirement planner does not retain nor share any of your personal data. The calculation provided by this calculator are based on certain assumptions, including the data entered by the user. This calculator does not take into account individual needs or circumstances. The results generated by this calculator may differ from other similar calculators in the market when different assumptions are adopted. Please note that the results do not represent, or promise, the actual amount of the retirement benefits the user will receive at retirement; and that they are for reference only and are not intended as, and cannot be as, a substitute for professional financial advice. The IFEC shall not be liable for any human or mechanical errors or omissions in or any reliance placed upon the results; nor shall it be liable for the consequences of any decision or action taken upon or as a result of the information provided by this calculator.

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About Retirement Planner

The Retirement Planner includes five sections, namely "About you", "How much do you need for retirement", "Your retirement schemes", "Your savings and investments" and "Other retirement income".

After completing relevant information in the above sections, you will be provided an analysis report and action plan which you could use to improve your retirement plan.

Please input the relevant information on each page and press the "next" button to continue. You can also click on the "previous" button to go back and edit the inputs of previous pages.
After completing all five sections, please press the "result" button to view your analysis report and action plan.
You can press to view and save your report in PDF format, or press to print the full report.
The personal data you have provided will only be analysed once, the Investor and Financial Education Council (IFEC) will not store your data and report.
The information you have provided for this retirement planner is your personal information and can be sensitive. While this retirement planner allows you to save your data and view the information in different formats, please note the following measures for your consideration to protect your information/records against unauthorised or accidental access, processing or erasure:
- Avoid using publically shared computers, such as those found in libraries or cyber cafes;
- Save your downloaded files to a secure location to avoid access by third parties;
- Do not leave your computer unattended while using this retirement planner;
- Always remember to log off properly or close all browser windows immediately after use;
- Install reputable anti-virus or security protection software on your computer.

Assumptions and methodology

Default values

The following fields have been set with default values, which can be changed by the user:

Expected inflation rate (p.a.);
Expected rate of return during retirement;
Expected annual salary growth;
Expected annual MPF investment return rate;
Expected rate of return (p.a.) for savings and investments.

MPF benefit projections

The amount of MPF mandatory contributions made are subject to the existing statutory minimum and maximum levels of income which are HKD7,100 and HKD30,000 per month respectively. Both levels are adjusted automatically every four years according to the rate of inflation as measured by the annualised Composite Consumer Price Index change over the past 10 years.
An annual bonus, if any, is included in the relevant income of the last month of each year.
Voluntary contributions (if any) are made as a percentage of the relevant income per month. There is no upper limit to the level of voluntary contributions, and all such contributions are fully vested.
Special voluntary contributions (if any) are made in a fixed dollar amount.
Mandatory contributions, voluntary contributions and special voluntary contributions are made on a monthly basis and will continue to be made until the retirement age.
Existing MPF balance, as input by the user, is assumed to be fully vested.
There is no long service payment/severance payment offsetting, no default contribution, no breaking of employment, and no early withdrawal during the period of projection.

Benefits of other retirement schemes

There are different methodologies to calculate/determine the benefits of other retirement schemes (eg ORSO, Civil Service Pension, Grant/Subsidized Schools Provident Fund etc). As such, this retirement planner will not calculate these retirement benefits. Users can check with the service providers or employers for assistance in calculating the expected retirement benefits, and then input the figures accordingly.

Your savings and investments

Monthly retirement saving plans (if any) will continue to be made until the retirement age.

Result

"The expected reserve accumulated when you retire" is the sum of expected MPF accrued benefits/ORSO retirement benefits/Civil Service Pension lump sum gratuity/Grant/Subsidized Schools Provident Fund benefits, plus expected savings and investments at retirement age.
"The expected amount required when you retire" equals to the expected total retirement expenses minus the total discounted monthly pension and other retirement income. If the expected total retirement expenses are smaller than the sum of total discounted monthly pension and other retirement income, the "expected amount required when you retire" will become a negative figure. Please note that expected total retirement expenses do not include inheritance and funeral cost.
The presentation of the expected shortfall at retirement age and the current annual income is for illustration purpose only. The value of the annual income does not take into account the effect of income growth.

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Retirement Planner

How much do you need for retirement? Use the Retirement Planner to work out your retirement budget and take home our free analysis report and action plan now!

info@ifec.org.hk

Feedback on Retirement Planner

Retirement age varies across different people. It tells you how many years you have left to accumulate savings. The earlier you retire, the more money you need to cope with expenses.

The expectancy of life at birth for men and women is about 81 years and 87 years respectively.

As at March 2020, the annualised percentage change of the Composite Consumer Price Index over the past 5 and 10 years are 2.1% and 3.2% respectively.

The annualised return rate of Tracker Fund of the past 5 and 10 years is -0.1% and 1.5% respectively (as at July 2020 - without dividend reinvested). Dividend yield around 3% as of July 2020. Please note that past performance is not a reliable guide for future performance.

If you are an employee, both you and your employer are required to contribute 5% of your relevant income respectively as MPF mandatory contributions, subject to the minimum and maximum relevant income levels.

If you are a self-employed person, you are required to contribute 5% of your relevant income as MPF mandatory contributions, subject to the minimum and maximum relevant income levels. A self-employed person is a person who earns income from the production of, or trade in goods or services in a capacity other than an employee.

For employees, relevant income refers to any wage, salary, leave pay, fee, commission, bonus, gratuity, perquisite or allowance expressed in monetary terms, paid or payable by an employer to an employee. For self-employed persons, there are a few ways to ascertain the relevant income, please refer to the webpage re contributions of the MPFA website for details.

The annualised percentage change of Nominal Indices of Payroll Per Person Engaged from Q1 2010 to Q1 2020 was 4.7%.

Any additional contribution paid by the employer on top of the 5% mandatory contribution is considered to be voluntary contribution.

This is a fixed amount contribution made to your MPF account in addition to mandatory contribution and voluntary contribution. Special voluntary contribution is paid directly by a relevant employee to the trustee without going through the employer. Making special voluntary contribution and withdrawal of its accrued benefits are neither tied to employment nor subject to preservation requirements.

You can check your annual benefit statements, make sure to include all your MPF accounts.

The annualised internal rate of return since inception of the MPF system in year 2000 to 31 March 2020 is 2.6%. Please note that past performance is not a reliable guide for future performance.

Please include all non-retirement scheme savings and investments that were made for retirement purpose.

For example, monthly investment plan for equities, funds etc.

The annualised return rate of Tracker Fund of the past 5 and 10 years is at -0.1% and 1.5% respectively (as at July 2020 - without dividend reinvested). Dividend yield around 3% as of July 2020. Please note that past performance is not a reliable guide for future performance.

As at March 2020, the annualised percentage change of the Composite Consumer Price Index over the past 5 years and 10 years are 2.1% and 3.2% respectively. The annualised percentage change of Nominal Indices of Payroll for Person Engaged from Q1 2010 to Q1 2020 was 4.7%.

This Retirement Planner helps you plan for your retirement. Simply answer some questions about your savings and investments, retirement schemes, other retirement income and the lifestyle you expect to lead during retirement, you will be provided a free analysis report and an action plan outlining key considerations for your retirement. You can save or print your report and action plan. You can also share this tool with your family and friends, or discuss the result with your financial advisers as appropriate.