HKMC Annuity Plan Calculator
Turn a one-off lump sum into a guaranteed monthly income for life. Enter your age, sex and premium to see the HKMC monthly payout, your breakeven age and how it stacks up against treasury bills and REITs.
TL;DR
- ▸ The HKMC Annuity Plan is a public lifetime annuity for HK permanent residents aged 60+. You pay a single premium (HK$50,000–HK$5,000,000) and receive a fixed monthly amount for life.
- ▸ A 65-year-old male putting in HK$1,000,000 receives about HK$5,800/month (a 6.9% annual payout rate); a 65-year-old female about HK$5,300/month.
- ▸ Payments are guaranteed for life and never decrease. A breakeven guarantee means total payouts plus any death benefit will at least equal the premium paid.
Your annuity inputs
HKMC minimum entry age is 60. Older entry = higher monthly payout.
Guaranteed monthly income for life
HK$5,800 /mo
HK$69,600 per year · 7.0% payout rate
Breakeven age
79.4
Years to breakeven
14.4
IRR if 20 yrs
3.4%
Total by age 90
HK$1,740,000
Illustrative only, based on HKMC published guaranteed rates per HK$1m. Your binding quote depends on the prevailing rate on your application date — confirm on the official HKMC calculator.
Worked examples
Tap a card to load that scenario into the calculator above.
Annuity vs Treasury Bill vs REIT
First-year income on the same HK$1,000,000 of capital. The annuity trades away your capital for a higher, lifelong, guaranteed cheque.
| Option | Annual income | Capital kept? | Guaranteed? |
|---|---|---|---|
| HKMC Annuity | HK$69,600 | No | Yes |
| HK Treasury Bill | HK$35,000 | Yes | Yes |
| HK REIT | HK$65,000 | Yes | No |
T-bill ~3.5% and REIT ~6.5% are illustrative recent yield bands and fluctuate. With T-bills and REITs you keep the capital but income is not guaranteed for life; the annuity converts capital into a guaranteed lifelong cheque with longevity protection. Compare T-bill yields with the Treasury Bills calculator below.
HKMC guaranteed monthly payout per HK$1,000,000
Published guaranteed amounts. Higher entry age and male annuitants receive a higher monthly figure (shorter expected payout horizon).
| Entry age | Male / month | Female / month |
|---|---|---|
| 60 | HK$5,100 (6.1%) | HK$4,700 (5.6%) |
| 65 | HK$5,800 (7.0%) | HK$5,300 (6.4%) |
| 70 | HK$6,560 (7.9%) | HK$5,840 (7.0%) |
Source: HKMC Annuity (hkmca.hk) published guaranteed monthly payment per HK$1m. Rates between and beyond these ages in the calculator are interpolated and illustrative.
How the HKMC Annuity works
Unlike an MPF projection — which compounds your contributions during the accumulation years — an annuity is the reverse: you hand over a lump sum at retirement and the HKMC pays it back to you as a level monthly cheque for as long as you live. The longer you live, the more total income you draw; that longevity pooling is the core value, not investment growth.
The breakeven guarantee matters: if you pass away early, your estate still receives the unpaid balance up to the premium as a death benefit, so you can never get back less than you put in. After the breakeven point (roughly 14–17 years for a 65-year-old), every further payment is pure upside funded by the longevity pool.
Frequently asked questions
How much does the HKMC annuity pay per month?+
For every HK$1,000,000 of premium, a 65-year-old male receives about HK$5,800/month and a female about HK$5,300/month — roughly a 6.3%–6.9% annual payout rate. The monthly amount rises with entry age: a 70-year-old male gets about HK$6,560/month. Use the calculator above for your exact age, sex and premium.
HKMC annuity vs MPF — what is the difference?+
MPF is an accumulation vehicle: you and your employer contribute during your working years and the balance compounds until age 65. The HKMC annuity is a decumulation vehicle: you take a lump sum (often part of your MPF) at 60+ and convert it into a guaranteed monthly income for life. Many retirees use both — build the pot with MPF, then annuitise part of it with HKMC. See our MPF calculator to project the pot first.
What is the breakeven age for the annuity?+
Breakeven is when cumulative payouts equal your premium. At a ~6.9% payout rate (65-year-old male), that is about 14.5 years, so roughly age 79–80. Because Hong Kong life expectancy at 65 is well into the 80s, most annuitants comfortably outlive breakeven. The breakeven guarantee also protects your estate if you do not.
Is the HKMC annuity a good retirement income option in Hong Kong?+
It suits retirees who want a simple, guaranteed lifelong cheque and worry about outliving their savings — the payout rate (6–8%) is higher than T-bills or fixed deposits, and it is government-backed. The trade-off is loss of liquidity: the capital is largely committed and you cannot easily get the lump sum back. A common approach is to annuitise only part of your nest egg and keep the rest in liquid investments like REITs or ETFs.
Build your retirement income plan
MPF Calculator
Project the retirement pot you can later annuitise.
HK Treasury Bills Calculator
Compare a liquid, capital-preserving income alternative.
HK REIT Yield Comparator
Higher yield, but distributions are not guaranteed for life.
Dividend Tax Calculator
Annuity income is tax-free in HK — see how dividends compare.
Next step: project your retirement pot, then decide how much to annuitise.
Open MPF Calculator →Reviewed by Jim Liu
Hong Kong & cross-border investing writer at TradeSmart. Covers MPF, annuities, IPOs and broker comparisons.
This calculator provides illustrative estimates only and is not financial advice or a quote. HKMC Annuity Plan payout rates are set by The Hong Kong Mortgage Corporation and depend on your age, sex and the prevailing rate on your application date. Confirm any figure with the official HKMC Annuity calculator and a licensed adviser before purchasing. TradingView and moomoo are affiliate links.