Major financial institutions including HSBC, Manulife and BOC Life are increasingly targeting Hong Kong’s ageing population with specialised retirement investment solutions designed to deliver consistent income streams. This trend aligns with the government’s broader strategy to capitalise on the expanding opportunities within the so-called silver economy.
HSBC, the city’s largest bank, recently launched five post-retirement funds offering a non-guaranteed target dividend payout rate of 6 per cent annually—substantially higher than its current time deposit rates, which range between 2 and 3 per cent depending on tenure. The bank plans to expand its retirement-focused offerings further in the second half of 2025.
Sami Abouzahr, Head of Wealth and Premier Solutions at HSBC Hong Kong, highlighted the rationale behind the initiative. “In light of the growing importance of addressing longevity risk in Hong Kong, we have developed a specialised suite of post-retirement funds designed to provide customers with a predictable monthly income stream while safeguarding the long-term value of their retirement assets,” he said.
He added that the newly launched funds are aligned with the government’s silver economy initiative, aimed at helping the elderly better plan their financial future. These products feature competitive management fees of 1 per cent, although the fund manager retains discretion to adjust the dividend payout or utilise part of the principal for distributions.
Hong Kong’s demographic trajectory underscores the urgency for such offerings. Government data indicates that residents aged 65 and above accounted for 22 per cent of the city’s 7.5 million population in 2023, with that proportion projected to rise to 31 per cent by 2036.
Manulife, the city’s largest pension provider, also offers retirement-oriented products. Its annuity plan enables policyholders to receive monthly payments for 25 years, with additional benefits for those diagnosed with dementia.
BOC Life, a subsidiary of Bank of China (Hong Kong), provides another suite of retirement solutions, including a plan that pays a non-guaranteed lifelong monthly income after just two years of premium payments. The company’s RetireCation programme, launched late last year, allows customers to live and travel in 18 mainland Chinese cities—including nine within the Greater Bay Area—while enjoying retirement income benefits.
Wilson Tang, Chief Executive Officer of BOC Life, reported that the initiative has had a significant impact. “Since the launch of the new product, the annualised premium of the new product has exceeded HK$1.4 billion, becoming our new growth driver in 2025,” he said.
Deputy Chief Secretary for Administration Warner Cheuk Wing-hing, who heads a dedicated task force on the silver economy, highlighted the sector’s considerable economic significance. In 2024, residents aged 60 and above were responsible for approximately HK$342 billion in spending, equating to around 11 per cent of Hong Kong’s GDP. This figure is projected to rise to HK$496 billion by 2034, according to government estimates.
The shift has prompted increasing engagement from the financial services sector. “As Hong Kong develops the silver economy, an increasing number of financial firms have been racing to offer retirement solutions for people to have a regular income after retirement,” said Kenrick Chung, Chief Corporate Solutions Officer at Bay Insurance Brokers.
However, Chung cautioned investors to carefully evaluate the terms of such products. “Many of these retirement funds do not have a guaranteed rate, and investors may eventually lose money if the market does not perform well,” he said. He recommended that retirees seeking stability consider products with guaranteed payouts, such as annuity plans offered by the Hong Kong Mortgage Corporation (HKMC).
HKMC’s government-backed annuity scheme, launched in 2018, provides lifelong monthly payments with an internal rate of return of around 4 per cent. Since inception, approximately 40,000 residents over 60 have invested HK$23 billion in the programme.
-SCMP
