How the public annuity creates a monthly retirement income
The HKMC Annuity Plan (the public annuity) is run by the government-owned HKMC Annuity Limited and lets people aged 60 or above exchange a lump-sum premium for guaranteed monthly income for life — in effect, turning a pot of savings into a lifelong monthly “pay cheque”. Eligible elderly may also claim government support such as the Old Age Living Allowance.
How does the public annuity work?
You pay a one-off premium (currently HK$50,000 to HK$5 million for an individual) and, from then on, receive a fixed, guaranteed monthly annuity for life. The amount depends on your age and sex at entry — the older you are, the higher the monthly payout tends to be.
General description only; premium range and amounts are subject to HKMC Annuity Limited's announcements (2026).
Roughly how much does it pay?
Per HK$1 million of premium (illustrative; actual figures per official announcements):
| Entry age | Male (approx/month) | Female (approx/month) |
|---|---|---|
| Age 65 | ~HK$5,800 | ~HK$5,300 |
| Age 75 | ~HK$7,360 | ~HK$6,420 |
Example amounts per HK$1 million of premium, for reference only; actual payout rates, amounts and terms are subject to HKMC Annuity Limited (2026).
Who is it suitable for?
- Retirees with a lump sum who want steady lifelong income.
- Those worried about outliving their savings — the annuity pays for life.
- People who want to lock essential spending with an annuity and keep other assets flexible.
What to watch out for
- Low flexibility: the money is a long-term commitment — don't use funds you may need soon.
- Inflation risk: the fixed monthly amount may lose real purchasing power over time.
- It is not an allowance: this is income from your own money, unlike the means-tested Old Age Living Allowance.
General education only, not personalised advice; consult a licensed adviser for your situation before any decision.
Related reading
Frequently asked questions
How is the public annuity different from the Old Age Living Allowance?
The public annuity is lifelong income you buy with a premium — open to anyone eligible to apply; the Old Age Living Allowance is a means-tested government allowance subject to asset and income tests. See our OALA article for the latter.
Can I get my principal back?
There are death-benefit arrangements, but it is generally a long-term commitment with limited flexibility; review the guaranteed period, death benefit and surrender terms, and weigh the impact on your liquidity before applying.
Is the return high?
Its strength is stability and a lifelong guarantee, not a high return; the actual internal rate of return depends on your longevity — the longer you live, the higher the overall return tends to be. It suits being part of a stable cash flow, not your only plan.
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