Disclaimer
The calculation of the Retirement Planner is based on certain assumptions including the
hypothetical data input by the user. It does not take into account individual needs or circumstances.
The results generated by this Retirement Planner 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 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 the Retirement Planner.
According to the Mandatory Provident Fund Schemes Ordinance, withdrawal of MPF accrued benefits is only allowed when MPF scheme members reach the age of 65.
The "expected amount required when you retire" is a negative figure because
your expected income after retirement (including civil servantâs monthly pension, if any)
is higher than your expected retirement expenses.
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.
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 December 2018, the annualised percentage change of the Composite Consumer Price Index over the past 5 and 10 years are 2.7% and 3.0% respectively.
The annualised return rate of Tracker Fund of the past 5 and 10 years is 3.0% and 3.9% respectively (as at May 2019 - without dividend reinvested). 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 Q4 2008 to Q4 2018 was 4.4%.
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 December 2018 is 3.2%. 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 3.0% and 3.9% respectively (as at May 2019 - without dividend reinvested). Please note that past performance is not a reliable guide for future performance.
As at December 2018, the annualised percentage change of the Composite Consumer Price Index over the past 5 years and 10 years are 2.7% and 3.0% respectively. The annualised percentage change of Nominal Indices of Payroll for Person Engaged from Q4 2008 to Q4 2018 was 4.4%.
To press the reset button will clear all the data you just filled, are you sure to reset?
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.
