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Written by: Xie Deqin
2021-03-02 18:09
Last update date: 2021-03-02 18:09
For working people, how much wealth must be accumulated to be able to rest assured in their retirement years has always been a complicated issue.
There are divergent opinions on this. Some say that the "replacement ratio" is used to obtain a monthly reserve equivalent to 70% of the monthly salary before retirement.
With the economic outlook changing and income and expenditure growth are difficult to grasp, how can we better budget for retirement needs?
The term "substitution ratio" comes from a study by the Organization for Economic Cooperation and Development (OECD).
This study uses the post-retirement benefits and available funds to compare the available funds before retirement to arrive at the "replacement ratio", and believes that if you want to maintain the standard of living before retirement, you must get at least 70% of the available funds per month.¹ .
However, life needs after retirement vary from person to person. How do we plan the most appropriate retirement plan?
Simple widgets to help you assess your retirement needs
So, is there a simple and convenient way for everyone to estimate the amount of savings they need for retirement without having to predict their monthly salary or living standard at the time of retirement?
In fact, to get the answer, there are several elements behind it: the current monthly salary, the age at which you plan to retire, the fixed savings, and the quality of life you expect to enjoy after retirement, etc.
Retire "Excellent" The computer will use interactive question and answer format, allowing everyone to answer in a simple and intuitive way. You can get the amount required for retirement without any effort or repetitive calculation.
Refer to your financial management to provide goals for retirement needs
The "Excellent" computer will also take into account your existing savings and the amount of other various assets, and consider your financial management methods, so as to predict the value of these assets when you retire.
As a result, everyone can know how close they are to their retirement financial goals and plan accordingly.
The "excellent" calculator will evaluate the wealth accumulated under your current financial plan and calculate the difference between the amount required for retirement.
Deferred annuity products must have flexible options to meet retirement needs
When choosing financial products, of course, you must ensure that the product features are consistent with your financial goals.
When planning for retirement, deferred annuity products are one of the products that are suitable for most people. This product allows everyone to pay premiums within 5 or 10 years, and they can provide retirement income at a specified age (for example, 65) .
During this period, insurance premiums can enjoy income and increase in value.
In addition, when choosing a deferred annuity product, you may need to pay attention to options such as early surrender, and you can withdraw the guaranteed cash value when you need it or encounter unexpected changes.
Among them, Sun Life Financial’s Plenty Deferred Annuity Plan also provides flexible options, allowing the beneficiary to obtain the amount of protection in a lump sum or instalments when the insured returns to old age for a hundred years, so as to meet different needs in the future with a heart.
The application procedure of the Fengshuo Deferred Annuity Plan is simple and does not require medical underwriting. From now until March 31, 2021, if you successfully apply for the insurance and meet the specified premium conditions, you can also enjoy a premium rebate of up to 8% of the first year's annualized premium*.
For details, please go to: https://bit.ly/3kCT5LW
⁽¹⁾ OECD (1998), Maintaining Prosperity In An Ageing Society: the OECD study on the policy implications of ageing,https://www.oecd.org/els/public-pensions/2429016.pdf(accessed on 25 January, 2021).
*The information is provided by the customer. The above information is for reference only. For details, please refer to Sun Life Financial's website.
*Fengshuo Deferred Annuity Plan and premium rebate are subject to terms and conditions and conditions determined by Sun Life Financial.
For details including product features, risk details and investment philosophy, please refer to the relevant product promotion publications, leaflets and sample policy documents.
Please note that the tax deduction arrangements for qualifying deferred annuity policies on this page are for reference only, and it does not mean that you will be eligible for tax deduction for the premiums paid for qualifying deferred annuity policies.
The tax deduction arrangements for eligible deferred annuity policies on this page depend on the general product characteristics and the certification of the Insurance Regulatory Authority (the "Insurance Regulatory Authority"), rather than your personal circumstances.
You must meet all the eligibility requirements set out in the Inland Revenue Ordinance and any guidelines issued by the Inland Revenue Department of the Hong Kong Special Administrative Region ("Inland Revenue Department") in order to claim tax deductions.
All general tax information is for reference purposes only, and you should not make any tax-related decisions based on these information alone.
If you have any questions, you should consult a professional tax advisor.
Please note that tax laws, regulations, or interpretations may change, which may affect relevant tax incentives, including eligibility requirements for tax deductions.
Hong Kong Sun Life Financial Co., Ltd. has no responsibility to notify you of any changes in relevant laws and regulations or interpretations, and how such changes affect you.
Please note that only eligible annuity premiums due and paid within the tax year are eligible for tax deduction for the tax year.
Subject to the decision of the Inland Revenue Department, some or all of the premiums paid during the grace period for the previous tax year may or may not be eligible for tax deduction in that tax year.
For details of tax relief applicable to eligible deferred annuity policies, please refer to the CIRC website www.ia.org.hk/tc.
For any tax-related inquiries, you can also refer to the website of the Inland Revenue Department or contact the Inland Revenue Department directly.
If you are interested in purchasing a qualifying deferred annuity policy, you should understand the policy features disclosed in relevant promotional publications by different insurance companies in the market and the risks associated with qualifying deferred annuity policies and related risks (including but not limited to early surrender) And suffered major financial losses).
Note: The above information is based on the belief that it comes from a reliable source, but Sun Life Hong Kong Financial Co., Ltd. does not guarantee its accuracy and completeness, and will not be held responsible for such information.
The information in this document is for reference only and is not any guarantee or professional advice.
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