Retirement Trio / Self-made Longevity Income Calculator

In Hong Kong's retirement planning market, the \"retirement income trio\" usually refers to the Hong Kong Annuity Plan, Reverse Mortgage and Policy Reverse Mortgage - three tools that convert assets into stable cash flow. As Hong Kong people live longer and MPF alone may not be enough for an ideal retirement, more pre-retirees want to create \"self-made longevity income\" from property, insurance policies or savings to supplement retirement income. Each tool has its own features and suits people with different asset positions.

The Hong Kong Annuity Plan is offered by the Hong Kong Annuity Company. Policyholders pay a lump-sum premium in exchange for a lifetime guaranteed monthly income; the later the purchase age, the higher the internal rate of return and monthly payout usually are. Reverse Mortgage allows owners to use their self-occupied property as collateral and receive monthly payments from a bank or lender while continuing to live in it; after death the heirs repay or sell the property. Policy Reverse Mortgage is similar but uses the surrender value of an eligible life insurance policy as collateral, suiting people with high cash-value policies who do not want to surrender them.

HK FinBox's retirement income trio calculator lets you enter at the same time the premium paid into the Hong Kong Annuity Plan, the value of your self-occupied property and the surrender value of your life insurance policy. It automatically applies reference returns and loan-to-value ratios by age to estimate the monthly income from each tool and the total. You can also turn individual products on or off to compare how different combinations affect retirement cash flow.

When choosing among the retirement income trio, consider liquidity, estate planning and inflation risk. Annuities provide lifetime income but lock up capital; reverse mortgages let you keep residency but reduce the estate; policy reverse mortgages may affect policy protection. Consult a licensed financial adviser before deciding and treat the calculator results as a preliminary reference, not a final quote.