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  • Writer's pictureTrista Yuen

Start your retirement plans early

According to a report by the Census and Statistics Department, Hong Kong has been the world's longest living place for seven consecutive years. The average life expectancy of men has increased from 74.1 years in 1986 to 82.9 years in 2020. The average life expectancy of women has also increased significantly from 79.4 years in 1986 to 88 years in 2020. The Department predicts that by 2029, the average life expectancy of men and women will increase to 84.2 years and 89.9 years respectively.

Assuming that you would like to retire at 65, your retirement life could be as long as 25 years or even longer. If you want to sustain your quality of life after retirement, how much retirement reserves do you need?

  1. Calculate how much you need for retirement: You can use MPFA's retirement planning calculator ( Simply by filling in your current monthly salary, savings, expected salary raise and retirement expenses, you would know approximately how much retirement reserves is needed.

  2. Adjust your retirement goals: If the amount you come up with is too high, adjust your budget for retirement expenses. Choosing a simple and comfortable life as your retirement goal can reduce the required retirement funds and stress.

  3. Consider making additional MPF contributions: If you wish to enjoy an affluent retirement life, you can consider making additional MPF contributions, then choose portfolio funds that meet your investment goals and match your risk tolerance level. The government also offers tax incentives to encourage citizens to make voluntary contributions.

  4. Invest appropriately The sooner you invest for retirement, the less capital you need. This is especially true for investment tools with compound interests. When you are approaching retirement age, your risk tolerance will be lower than when you were young. At that time, you can consider switching your investment products from high-risk to low-risk gradually.

Need professional advice?

AYS provides MPF consolidation service. We analyze fund prices and performance on a regular basis, then make recommendations based on clients' goals and risk tolerance levels. Feel free to contact us and we would discuss your MPF investment portfolio with you.


Census and Statistics Department



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