HSBC, Manulife and BOC Life are among the many monetary corporations courting retirees with new funding merchandise that supply common revenue streams amid a broader government-led initiative to seize alternatives within the so-called silver financial system.
The town’s largest lender, HSBC, final week launched 5 retirement-solution funds, which supply a non-guaranteed goal dividend payout fee of 6 per cent a yr. Extra retirement-focused funds can be added to the suite within the second half of 2025, the financial institution mentioned.
The goal payout fee is increased than HSBC’s rates of interest on time deposits, that are at the moment between 2 and three per cent a yr relying on tenure.
“In mild of the rising significance of addressing longevity danger in Hong Kong, now we have developed a specialised suite of post-retirement funds designed to supply prospects with a predictable month-to-month revenue stream whereas safeguarding the long-term worth of their retirement belongings,” mentioned Sami Abouzahr, head of wealth and premier options at HSBC Hong Kong, in a press release to the Put up on Monday.
“These funds additionally align with the federal government’s current silver financial system initiative, which goals to empower the aged to successfully plan for his or her retirement.”
The funds cost low administration charges of 1 per cent, he added. The financial institution mentioned that the fund supervisor might modify the dividend payout fee and even distribute dividends from a part of the preliminary funding.
