Retirement should be one of the happiest times of our lives, but for many it's not as happy as it could be, simply because money is in short supply. Don't wait until it's too late to save for your retirement.
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Consider these facts:
- Corporate restructuring is resulting in more
involuntary retirements.
- Average life expectancy in Hong Kong#
- women: 85.5
years, men: 79.4 years. (2007 provisional figures)
- At 65, most people are still healthy and active.
- At least 70% of your current income will be needed to
maintain your existing living standards after retirement.
- Medical expenses will increase substantially while
you are aging.
- When you retire, you don't want to be a financial
burden to your children.
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Take a look at how much your MPF nest egg may be worth by the
time you reach 65 if your total MPF contribution is HK$2,000 per month
and assuming an annual rate of inflation of 3.78%*:
| Annual return before 65 |
4% |
6% |
8% |
Current
Age |
Amount
required
at 65** ($) |
Amount
accumulated
at 65 ($) |
Shortfall
Amount
($) |
Amount
accumulated
at 65 ($) |
Shortfall
Amount
($) |
Amount
accumulated
at 65 ($) |
Shortfall
Amount
($) |
| 25 |
17,997,278 |
2,322,128 |
-15,675,150 |
3,815,356 |
-14,181,922 |
6,442,159 |
-11,555,119 |
| 35 |
12,418,529 |
1,370,541 |
-11,047,988 |
1,949,026 |
-10,469,503 |
2,817,101 |
-9,601,428 |
| 45 |
8,569,066 |
727,683 |
-7,841,383 |
906,877
|
-7,662,189 |
1,137,998 |
-7,431,068 |
| 60 |
4,911,662 |
132,358 |
-4,779,304 |
138,972 |
-4,772,690 |
145,889 |
-4,765,773 |
# Source: HK Census and Statistics Departments,
HK Life Tables 2007.
*Average annual inflation rate over the past 20 years. (Source: Thomson
Datastream 1988-2008)
**Assumes your life expectancy is 82 and you need only HK$20,000 per
month (in today's dollar) to maintain your living standard and
investment return equals inflation during your retirement years. All
dollar amounts have been rounded to the nearest hundred. Rates of
return shown for illustrative purposes only.
The earlier you
start, the more the effect of compounding returns will work for you.
| |
Ralph |
Lauren |
| Saved
each month |
$5,000 |
$5,000 |
| Starts at age |
20
|
30 |
| Stops at
age |
30 |
65 |
| Total |
$600,000
(over 10 years) |
$2.1
million (over 35 years) |
Lump sum at 65
(assuming an annual
return of 8%)
|
$13.3
million |
$10.7
million |
* At a return of
5% p.a. Ralph and Lauren would have a total lump sum of $4.3m and $5.5m
respectively at 65. These examples are for illustration only and do not
represent any fund performance. |
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Power
of compounding takes time not money
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We offer a choice of over 70 equity, bond and money
market funds to help you take advantage of global investment
opportunities. You can start with as little as HK$5,000 (through J.P.
Morgan eTrading) for a lump sum investment or HK$1,000 per
month through our monthly fund investment.
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 Define your goals and savings
plan with our unique FREE Financial Health Check
 Choose the right mix of funds
with the help of our professional advice
 Open an account with us and
start saving TODAY
For a FREE proposal of how you
should start building for a comfortable retirement, you are most
welcome to contact our Investment Advisers for a private consultation
now.
Tel: 2265 1333
J.P. Morgan Investment Centre
Walkway Level, Jardine House, Central, Hong Kong
Monday to Friday 8:30am-7:00pm and Saturday 8:30am-1:00pm
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