Hong Kong Retirement Planning Guide 2026

MPF in 2026: 5%+5% contributions, eMPF and full portability

Mandatory MPF contributions are 5% of relevant income from both employer and employee. The monthly relevant income floor is HK$7,100 and the cap is HK$30,000, so each side contributes at most HK$1,500 per month (HK$3,000 combined); employees earning below HK$7,100 are exempt from contributing, but the employer still pays 5%. Self-employed people also contribute 5%, on annual relevant income between HK$85,200 and HK$360,000, capped at HK$18,000 a year. Mandatory contributions are tax-deductible up to HK$18,000 per year.

Several major reforms took effect in 2025-26. The MPF offsetting arrangement was abolished on 1 May 2025. The eMPF platform, launched in June 2024, has onboarded all 12 trustees — the last schemes (HSBC and Hang Seng) joined on 29 January 2026 — with more than 10 million accounts migrated; platform fees have fallen to about 0.3% of assets (around 29 basis points from April 2026), with projected administrative savings of HK$30-50 billion over ten years. Under the first phase of "full portability", employees hired on or after 1 May 2025 can transfer the accrued benefits from their employer's mandatory contributions to a self-selected scheme once per calendar year; the second phase, extending the same right to existing employees, is expected in 2027.

The government is also reviewing the contribution bands — a proposed floor of HK$10,500 and cap of HK$40,000 would raise the maximum to HK$2,000 per side, but this is not yet implemented. For tax savers, Tax-Deductible Voluntary Contributions (TVC) share a combined annual deduction cap of HK$60,000 with Qualifying Deferred Annuity Policy (QDAP) premiums.

Elderly benefits 2026: OAA and OALA

Under the Social Security Allowance Scheme, residents aged 70 or above can receive the Old Age Allowance ("fruit money") of HK$1,675 per month with no means test. Those aged 65 or above can apply for the Old Age Living Allowance of HK$4,345 per month, subject to income and asset tests: single applicants must have monthly income below HK$10,900 and assets below HK$415,000; couples HK$16,680 and HK$630,000 respectively. The two allowances cannot be claimed together. These amounts took effect on 1 February 2026. Seniors can also use the Elderly Health Care Voucher scheme (HK$2,000 per year, accumulating to HK$8,000) for medical services.

Immediate annuities: turning a lump sum into lifelong income

The HKMC Annuity Plan, operated by a wholly-owned subsidiary of the Hong Kong Mortgage Corporation (fully owned through the Exchange Fund), lets Hong Kong permanent residents aged 60 or above convert a single premium (HK$50,000 to HK$5,000,000) into guaranteed monthly income starting as early as the following month and lasting for life. At a HK$1 million premium, the guaranteed monthly annuity is about HK$5,100 for a 60-year-old man (a payout rate of about 6.1%) and about HK$4,700 for a 60-year-old woman (about 5.6%); at age 65 it rises to about HK$5,800 (men, about 6.9%) and HK$5,300 (women, about 6.3%) — roughly HK$470-580 per HK$100,000 of premium. Actual amounts vary by age and gender; always confirm with the official quotation. The plan also includes death benefits and a special withdrawal arrangement for medical and dental expenses.

Reverse mortgages: turning your home into monthly income

The Reverse Mortgage Programme, run by the Hong Kong Mortgage Corporation, allows Hong Kong residents aged 55 or above who own a self-occupied property to pledge it in exchange for monthly annuity payments over 10, 15 or 20 years, or for life, with an optional lump sum. Based on a HK$1 million property value, a single borrower aged 60 choosing the lifetime option receives about HK$1,840 per month under the floating-rate plan (rates as of 31 January 2026), rising to about HK$2,790 at age 70. Borrowers never need to repay during their lifetime — the loan is settled from the estate — and the plan offers a six-month cooling-off period and, under specified conditions, permission to rent out the property. Figures are indicative and subject to the HKMC's official publication.