News eDaily14 Aug 2018

Hong Kong:Around 9,000 retirees sign up for govt annuity plan

14 Aug 2018

Just 9,140 senior citizens registered their desire for enrollment to the Hong Kong government's HK$10bn ($1.27bn) public annuity scheme. The total subscription of HK$4.94bn was less than half of the HK10bn limit for the first tranche. The average subscription amount was HK$525,000.

Most applicants– 5,827 of them or 63%–were between the ages of 65 and 69 years, and 23% or 2,160 registrations came from those aged from 70 to 74 years. Only about 14% or 1,423 were at least 75 years old.

The offer, which opened on 19 July and closed on 8 August, is managed by HKMC Annuity. The plan allows senior citizens aged 65 years or above to turn part of their savings into life-long fixed annuity income.

Commenting on the response to the plan, Mr Edmond Lau Ying-pan, HKMCA executive director and chief executive, said the corporation is "satisfied with the overall outcome''.

"As life annuities are relatively new long-term insurance products, the public will require more time to comprehend the concepts and features,'' he said.

About 30%, or 2,854 of the applicants registered their intention to subscribe for HK$1m. About 54% or 5,126 of the applicants planned to subscribe for HK$500,000 or more.

Mr Lau said earlier this month that the HK$10bn ceiling "is actually not our sales target. It's only a ceiling reflecting our risk management concerns.”

In early July, the government said it was prepared to double the quota to HK$20bn if the plan was oversubscribed


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