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.
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.
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.
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 2020, the annualised percentage change of the Composite Consumer Price Index over the past 5 and 10 years are 1.5% and 2.8% respectively.
The annualised return rate of Tracker Fund of the past 5 and 10 years is 6.6% and 2.5% respectively (as at June 2021 - without dividend reinvested). Dividend yield around 3% as of June 2021. 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 2010 to Q4 2020 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 2020 is 4.8%. 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 6.6% and 2.5% respectively (as at June 2021 - without dividend reinvested). Dividend yield around 3% as of June 2021. Please note that past performance is not a reliable guide for future performance.
As at December 2020, the annualised percentage change of the Composite Consumer Price Index over the past 5 years and 10 years are 1.5% and 2.8% respectively. The annualised percentage change of Nominal Indices of Payroll for Person Engaged from Q4 2010 to Q4 2020 was 4.4%.
To press the reset button will clear all the data you just filled, are you sure to reset?
Larger values can be inputted in the text box directly.
Expected retirement age
Larger values can be inputted in the text box directly.
Life expectancy
Larger values can be inputted in the text box directly.
From now to retirement __ Years
Retirement life __ Years
What sort of lifestyle do you expect to lead during retirement? Do you want to
live more or less the same as before, or are you willing to lead a simpler lifestyle?
Also, as people age, an increasing amount of medical care will be required.
Therefore, it's important that you include medical expenses as part of your
retirement planning.
Expected monthly expenses during retirement (today's value)
Input the total monthly expenses
HKD
Larger values can be inputted in the text box directly.
Calculate the monthly expenses by categories
Items
HKD
Food and drinks
HKD
Transport
HKD
Household (eg rent/mortgage(if any), management fee, utilities,
mobile phone, internet, helper, pet, veterinary fee and
household maintenance expenses such as property
maintenance, home refurbishment etc.)
Others (eg education and learning, support for
parents/relatives etc.)
HKD
Total
HKD0
Expected inflation rate (p.a.)
Larger values can be inputted in the text box directly.
Expected rate of return during retirement eg interests or returns from other investments (p.a.)
Larger values can be inputted in the text box directly.
Please choose the appropriate categories:
Mandatory Provident Fund Schemes (MPF)
Other retirement schemes eg Occupational Retirement Schemes (ORSO), Civil Service Pension Schemes, Grant/Subsidized Schools Provident Fund etc)
No retirement schemeClick "Next" to proceed.
Notes
If you have accumulated MPF benefits in your previous jobs but have now left the workforce, for example, you have become a full-time housewife or house husband, please choose “MPF” (only need to input MPF balance).
If you are currently under an ORSO scheme but you have accumulated some MPF benefits in your previous jobs, please choose both “MPF” (only need to input MPF balance) and “other retirement schemes”.
MPF
An employee
A self-employed person
Relevant income
Monthly salary
HKD
Larger values can be inputted in the text box directly.
Annual bonus (if any)
HKD
Larger values can be inputted in the text box directly.
Expected annual salary growth
Larger values can be inputted in the text box directly.
Monthly voluntary contribution
Your voluntary monthly contribution
Larger values can be inputted in the text box directly.
Employer's voluntary monthly contribution
Larger values can be inputted in the text box directly.
Other retirement schemes eg Occupational Retirement Schemes (ORSO), Civil Service Pension Schemes, Grant/Subsidized Schools Provident Fund, etc
Monthly salary
HKD
Larger values can be inputted in the text box directly.
Annual bonus (if any)
HKD
Larger values can be inputted in the text box directly.
Expected retirement benefits or lump sum pension gratuity at retirement age (Notes 3, 4 and 5)
HKD
Larger values can be inputted in the text box directly.
Expected monthly pension received after retirement (if any) (Note 4)
HKD
Larger values can be inputted in the text box directly.
Notes
ORSO:
Different ORSO schemes have different methodologies to calculate/determine the retirement benefits of
scheme members. You can check with your ORSO service provider or employer for assistance in
calculating the expected retirement benefits and then input the relevant amount.
Learn more about
ORSO schemes.
The amount of benefits a contributor can obtain varies depending on the contributor's contributions
made, length of continuous contributory service and the reason for his/her cessation of employment as
a teacher. You can check with the provident fund provider or employer for assistance in calculating the
expected retirement benefits and then input the relevant amount.
Learn more about Grant/Subsidized Schools Provident Fund.
Current balance of all savings and investments
HKD
Larger values can be inputted in the text box directly.
Monthly savings and investments
HKD
Larger values can be inputted in the text box directly.
Expected rate of return (p.a.)
Larger values can be inputted in the text box directly.
I would like to calculate the savings/investments by categories
Categories
Current balance
Monthly contribution
Expected rate of return % p.a.
Bank deposit
Current balance
HKD
Monthly contribution
HKD
Expected rate of return % p.a.
Equities
Current balance
HKD
Monthly contribution
HKD
Expected rate of return % p.a.
Funds (exclude MPF)
Current balance
HKD
Monthly contribution
HKD
Expected rate of return % p.a.
Bonds
Current balance
HKD
Monthly contribution
HKD
Expected rate of return % p.a.
Insurance products with saving or investment element
Current balance
HKD
Monthly contribution
HKD
Expected rate of return % p.a.
Others
Current balance
HKD
Monthly contribution
HKD
Expected rate of return % p.a.
Total
Total current balance:
HKD0
Total monthly contribution:
HKD0
Annual return of the portfolio:
0.0%(Annual return of the portfolio)
How much monthly income do you expect from other sources during retirement,
for example, rent from properties, pocket money from your family and subsidies
from government (eg old age living allowance) (In today's value). If you do not expect such kinds of income or you are not sure about this, you can input "0".
HKD
Larger values can be inputted in the text box directly.
Expected annual growth rate of these incomes during retirement
Larger values can be inputted in the text box directly.
HKD
Expected reserve accumulated when you retire
HKD
Expected amount required when you retire
The expected reserve cannot cover
the expected required amount,
you still need HKD2,800,000
Equivalent to your current annual income 3.0 times
Calculate how much you need to save or invest each
month to close the gap:
Additional amount to save/invest for retirement
HKD4,700 per month
X 25
years
Expected rate of return (p.a.)
Start your saving or investment plan as soon as
possible. Saving early can really pay off due to the power of
compound interest. The sooner you start saving, the sooner you
start benefitting from the power of compound interest – which
puts time to work on your savings.
Spend less and save/invest more:
Cut back on non-essential items: start a spending
diary or use our expenses tracker mobile apps if you keep a
record of every dollar you spend, you’ll know exactly where
your money is going, and be more conscious of your spending
habits.
Shop around to compare prices at different retail
outlets, online and offline, you may find the same item or
service for a lower price.
Avoid impulse buy: think of the consequence of
increasing debts before you use credit cards to pay for
goods. If you have trouble avoiding purchase temptation, try
leaving your credit cards at home.
Set some rules for shopping: for example, set a
limit for birthday and festive presents or consider some
homemade gifts.
Consider to set aside some money for use in
emergencies.
Plan ahead and make paying of all existing debts –
including mortgage, personal loan and credit card debts – a
priority before you retire.
Visit www.ifec.org.hk for more information
about retirement planning
The investment decisions you make for your retirement
will have a direct impact on your overall savings outcome.
For the MPF system, each scheme has different
constituent funds for you to choose from. Different funds have
different risk and return profiles. In general, the higher the
potential return, the higher the potential risk. Carefully
select the investment portfolio that can match with your risk
and return profile. Visit MPF Education to learn more about MPF
investments.
Consider your investment horizon (ie the number of
years before and after retirement), investment objectives and
experience and assess your risk tolerance level.
Visit www.ifec.org.hk for more information
about retirement planning
Seek ways to generate more income for your retirement
savings or investments. For example, you can consider taking
part-time or freelance jobs if this is accepted by your
employer. For longer term, you can consider increasing your
income via education and professional training.
Visit www.ifec.org.hk for more information
about retirement planning
The expected amount you need for retirement is
calculated based on the monthly retirement expenses you input.
So, if you are facing a big gap for your retirement budget,
you may reconsider your retirement lifestyle to see if you can
spend less during retirement.
Leading a simpler lifestyle may help to reduce the
amount you need for retirement. For example, if you plan to
have two annual trips during your retirement, you may cut it
to one. Also, reducing eating out and preparing more meals at
home can help save more money.
Eat healthy and exercise regularly can keep you
healthy and thus help to save medical costs.
Visit www.ifec.org.hk for more information
about retirement planning
If you are facing a big gap for your retirement
budget, one possible option is to review the feasibility of
delaying your target retirement age and continue working. This
will reduce the total amount you need for retirement and allow
you to have more time to accumulate employment earnings.
Visit www.ifec.org.hk for more information
about retirement planning
HKD
Expected reserve accumulated when you retire
HKD
Expected amount required when you retire
Your expected reserve can meet with your retirement needs.
Keep up your good planning!!
Your action
plan
Review your retirement budget from time to time to make
sure it still works.
Regularly review your retirement schemes and investment
plans to ensure they meet your needs when situations change.
Consider ways to generate regular income after retirement
by putting your assets to work.
Review your insurance coverage as medical expenses can be
a significant cost as one gets older.
Consider estate planning and wills to make clear how you
wish to be cared for medically and financially in your final
days.
Visit www.ifec.org.hk
for more information about retirement planning.
How satisfied are you with this Retirement Planner? (1
is the lowest, 5 is the highest)
1
2
3
4
5
Note : 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.
to view and save your report in PDF format,
or press 
to print the full report.
