HSBC, Manulife and BOC Life are among the financial firms courting retirees with new investment products that offer regular income streams amid a broader government-led initiative to capture opportunities in the so-called silver economy.
The city’s biggest lender, HSBC, last week launched five retirement-solution funds, which offer a non-guaranteed target dividend payout rate of 6 per cent a year. More retirement-focused funds would be added to the suite in the second half of 2025, the bank said.
The target payout rate is higher than HSBC’s interest rates on time deposits, which are currently between 2 and 3 per cent a year depending on tenure.
“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,” said Sami Abouzahr, head of wealth and premier solutions at HSBC Hong Kong, in a statement to the Post on Monday.
“These funds also align with the government’s recent silver economy initiative, which aims to empower the elderly to effectively plan for their retirement.”
The funds charge low management fees of 1 per cent, he added. The bank said that the fund manager could adjust the dividend payout rate or even distribute dividends from part of the initial investment.
