Main table
| Dimension | MPF TVC | QDAP | VHIS | Savings insurance | Time deposit | Retail fund | HKMC Annuity Plan |
|---|---|---|---|---|---|---|---|
| Question answered | Extra retirement pot at 65 | Regular annuity from 50 | Hospital reimbursement | Lump sum at a future date plus death benefit | Short-term capital preservation | Medium- to long-term growth | Lifetime monthly income from 60 |
| Deduction | HK$60,000 shared with QDAP | HK$60,000 shared with TVC | HK$8,000 per insured person | None | None | None | None |
| Lock-up | To 65 or statutory grounds | Premium term ≥5 years, annuity ≥10 years from 50 | None (annual renewal) | Contract term; early surrender loss | Term; early withdrawal forfeits interest | None (about T+2) | Lifetime; surrender value declines |
| Guarantee | None | Guaranteed annuity portion | Not applicable | Guaranteed cash value; bonuses non-guaranteed | Yes; DPS up to HK$800,000 | None | Guaranteed monthly payment |
| Minimum | None | Total premiums ≥HK$180,000 | Per product | Per product | Per bank | Per fund | HK$50,000; HK$5 million per person |
| Cooling-off | n/a | 21 calendar days | 21 days | 21 calendar days | n/a | n/a | Per policy |
| Regulator | MPFA | Insurance Authority | Insurance Authority | Insurance Authority | HKMA | SFC | Insurance Authority |
| Savings layer | Four | Three to four | Protection, not savings | Three | One to two | Three to four | Retirement cash flow |
| Main risk | Fund volatility | Non-guaranteed part, inflation, early surrender | Premiums rise with age | Early surrender, non-guaranteed bonuses | Reinvestment at lower rates | Market volatility | Inflation, liquidity |
Reading the table
The deduction is worth the amount times the marginal rate: HK$60,000 saves HK$10,200 at 17% but only HK$1,200 at 2%, so lock-up, not tax, should decide. Guarantees come from different sources: the bank and the Deposit Protection Scheme for deposits, policy terms for the guaranteed parts of savings insurance and QDAP, and HKMC's subsidiary for the public annuity; TVC and retail funds guarantee nothing, and VHIS guarantees renewal rather than money. By stage, a single person starts with deposits, VHIS and MPF; a couple adds TVC for the higher earner; a family adds VHIS for children and term life for the gap; pre-retirees use TVC and QDAP; retirees hold a cash bucket and consider the HKMC Annuity Plan for longevity.
Sources and dates
- Allowances, Deductions and Tax Rate Table (PAM 61(e)) — Inland Revenue Department (IRD) · 2026-08
- What is a qualifying deferred annuity policy (QDAP)? — IFEC · 2019-03-27
- HKMC Annuity Plan — HKMC Annuity Limited · current
- Implementation of first phase of enhancement measures of Deposit Protection Scheme — HKMA · 2024-10-01
Cite this page
You may quote this page freely; please keep the source and date. Suggested format:
Life-Stage Planning Editorial (2026). “Savings and Retirement Tools in Hong Kong: A Side-by-Side Comparison.” wealthplan.hk. https://wealthplan.hk/en/compare/ (accessed YYYY-MM-DD).