Whether retirement is many years away or just round the corner, there is a great danger you could outlive your savings if you do not start planning now. Imagine what a miserable situation that would be! Given the advances made in medical science, retirement represents a far greater proportion of our lives than before, so we all need to accumulate more whilst we are working to meet the extra costs of living longer. Most importantly, the decisions we make today will dictate the standard of living we will enjoy (or not enjoy) during retirement.
The key, of course, is to determine exactly how much you will need during retirement – and to start planning for it now. As a rule of thumb, estimate your annual income requirement at retirement age, add inflation between now and then, and multiply that figure by 25. For example, let us say your estimate is an annual income requirement of US$100,000 p.a. at say age 60, multiplied by 25 that obviously gives rise to a lump sum of US$2,500,000. That broadly is the amount of money you will need.
As a licensed MPF Intermediary, H Capital can establish and advise on the underlying investment selection of Hong Kong MPF (Mandatory Provident Fund) Schemes as well as retirement schemes organized under the Occupational Retirement Schemes Ordinance (ORSO). In addition, we are pleased to assist with UK Pension Transfers QROPS (Qualifying Recognised Overseas Pension Scheme) enquiries.