\n FTLife launches Prosperous Deferred Annuity Plan 2 for customers\u2019 retirement need with tax deduction <\/p>\n
- \n
- In survey, 70% said
\nthey lack confidence in retirement due to pandemic, four times that pre-Covid <\/i> level. <\/i> Top three retirement worries are rising medical expenses (53%), lack of
\nstable income (52%) and managing expenses (50%); <\/i><\/li>\n- High market
\nvolatility arouses risk-adverse sentiment among Hongkongers. 37% of the
\nrespondents prefer to hold cash savings, especially for young people aged
\nbetween 20 and 29 (62%). Around a quarter are more interested in capital
\nguaranteed or low risk investment. Many people are re-examining their
\nretirement needs, with 62% of the respondents expressing interest in
\nsubscribing to a qualifying deferred annuity plan in the coming year. <\/i><\/li>\n- FTLife is launching
\nProsperous Deferred Annuity Plan 2, which is open to customers who are 20 years
\nold or above. The guaranteed breakeven <\/i> period is as short as <\/i> eight years [1]<\/sup>
\nto 4.32%\u00a0[2] <\/sup>,
\nso as to encourage different customers, especially the younger generation, to
\nstart their retirement planning early for a better future.<\/i><\/li>\n<\/ul>\n
\n
\n
\n
\n
\n <\/p>\n\u00a0 <\/p>\n
\n <\/p>\nHONG KONG SAR – Media OutReach<\/a> – 25 January 2021 -
\nFTLife Insurance Company Limited (“FTLife”) commissioned a market research
\ncompany to conduct “Retirement Planning and Confidence Survey” in December 2020.
\nThe survey interviewed 405 working adults aged 20 or above to understand how
\nthe pandemic affects Hongkongers’ retirement planning, wealth
\nmanagement preference
\nand behaviours. <\/p>\n![](\"https:\/\/release.media-outreach.com\/release.php\/Images\/Thumb\/500x0\/119588\/FTLife-Image.jpg#image-119588\")
<\/p>\n
\n <\/p>\nFTLife launches Prosperous
\nDeferred Annuity Plan 2 (Prosperous 2) today. From now until 31 March 2021,
\ncustomers who successfully subscribe to Prosperous 2 as well as one of the designated
\nVoluntary Health Insurance Scheme plans or insurance plans (basic plan\/rider)
\ncan enjoy up to 15% of first-year premium refund. The minimum issue age of
\nProsperous 2 is 20 years old and the range of total Internal Rate of Return at
\nmaturity can be up to 3.28% to 4.32%, helping customers achieve a stable and
\nindependent retirement life.<\/h5>\n
\n <\/p>\nCOVID-19 pandemic has deeply
\nimpacted the global economy. The survey revealed increased pessimistic about
\nretirement among respondents since the start of the pandemic. Before the outbreak,
\naround 16% said that they lacked confidence in retirement. During the pandemic,
\nthe number quadrupled to around 70%, illustrating how the pandemic has
\nintensified Hongkongers’ worries about retirement. The top three worries cited are
\nrising retirement medical expenses (53%), a lack of stable income post-retirement
\n(52%) and greater difficulty coping with retirement expenses (50%).<\/p>\n
\n <\/p>\n\u00a0 <\/p>\n
\n <\/p>\nYounger generation fall short
\non mid- to long-term financial planning <\/b><\/p>\n
\n <\/p>\n\u00a0 <\/b><\/p>\n
\n <\/p>\nAbout a quarter (24%) of the
\nrespondents said their investment awareness has improved due to the uncertain
\neconomy. However, two fifths (41%) are concerned about not making good investment
\ndecisions in the current volatile market owing to a lack of market and
\ninvestment knowledge. <\/p>\n
\n <\/p>\n\u00a0 <\/p>\n
\n <\/p>\nThis is especially true among the
\nyounger generation. Half (52%) of the younger respondents (aged 20 to 29) said
\nthey lacked knowledge on investment products and nearly three fifths of them (59%)
\nsaid they did not know how to do mid- to long-term financial planning. Almost
\nthree quarters (73%) said they have no regular saving habits. <\/p>\n
\n <\/p>\n\u00a0 <\/p>\n
\n <\/p>\nOnly 17% of those respondents aged
\n30 and over said they have no regular saving habits, with 40% saying they did
\nnot know how to do such financial planning. That said, about one-third (35%) of
\nthis group said that they didn’t have enough knowledge about investment products. \n <\/p>\n
\n <\/p>\n\u00a0 <\/b><\/p>\n
\n <\/p>\nHongkongers increasingly risk-averse <\/b><\/p>\n
\n <\/p>\n\u00a0 <\/b><\/p>\n
\n <\/p>\nDue to the volatile market and the
\npandemic, Hongkongers have become more risk-adverse leading to the adoption of more
\nconservative investment strategies. Nearly two fifths (37%) of those surveyed
\nprefer to hold cash savings, especially those aged
\nbetween 20 and 29<\/a> (62%). A quarter (25%) of the respondents are more
\ninterested in capital guaranteed or low risk investment. <\/p>\n
\n <\/p>\n\u00a0 <\/p>\n
\n <\/p>\nAs the pandemic continues and dents
\nHongkongers’ confidence in retirement, more respondents expressed their desire
\nfor a stable income in retirement (55%) and acknowledged that qualifying deferred
\nannuity plan is a suitable first step of retirement planning (41%). <\/p>\n
\n <\/p>\n\u00a0 <\/b><\/p>\n
\n <\/p>\nFTLife Chief Commercial
\nOfficer and Chief Product Officer Christine Yeung <\/b>said:
\n“Our latest survey found that Hongkongers’ confidence in retirement dropped during
\nthe pandemic and many young people did not have regular saving habits. This may
\nresult in missing the best timing to save for retirement and to achieve the rolling
\neffect of compound interest. Regardless of any economic cycle, it is best to
\nplan retirement early. For Hongkongers with limited amount of capital and little
\ninvestment experience, they can consider subscribing to a qualifying deferred annuity plan to start saving
\nearly. They can enjoy tax deductions while taking the first step to plan for
\nretirement.”<\/p>\n
\n <\/p>\n\u00a0 <\/p>\n
\n <\/p>\nWith regard to the public’s retirement needs
\nunder the pandemic, FTLife further investigated the public’s acceptance rate of
\na qualifying deferred annuity plan in the
\nsurvey. The pandemic has prompted people to review their retirement protection
\nneeds. More than three fifths (62%) of the respondents are interested in subscribing
\nto a qualifying deferred annuity plan in the
\ncoming year. The most attractive features of such a plan include: stable income
\nin retirement (82%), regulatory supervision (53%), payment in installments involving
\nsmaller amounts (47%), tax deductions (45%), higher guaranteed cash value and
\nlower investment risk (30%).<\/p>\n
\n <\/p>\n\u00a0 <\/p>\n
\n <\/p>\nMinimum issue age of 20 for
\nFTLife’s Prosperous 2 helps customers plan ahead <\/b><\/p>\n
\n <\/p>\n\u00a0 <\/b><\/p>\n
\n <\/p>\nIn response to increasing public demand of worry-free retirement, FTLife
\nis launching the Prosperous Deferred Annuity Plan 2 ( Prosperous 2) and setting
\nthe minimum issue age at 20 years old. This will allow customers to start their
\nretirement planning at an early age and enjoy tax deductions at the same time. <\/p>\n
\n <\/p>\n\u00a0 <\/p>\n
\n
\n Prosperous 2 is certified by the Insurance Authority as a
\ntax-deductible qualifying deferred annuity policy, with options for Premium
\nPayment Period and Accumulation Period. Customers can accelerate potential
\nwealth growth through guaranteed cash value and non-guaranteed terminal
\ndividend
\nand the range of total internal rate of return at maturity is between 3.28% to
\n4.32% 2 <\/sup><\/i>. During the annuity period, Prosperous 2 provides two extra protection
\nthat are exclusive [4]<\/sup> in
\nthe market: Travel Accidental Benefit and Terminal Illness Benefit.
\n <\/p>\n\u00a0 <\/p>\n
\n <\/p>\nMs. Yeung added: “Prosperous Deferred Annuity
\nPlan has been welcomed by customers since its launch. The enhanced version is being
\nlaunched during this special period to meet market demand and provide
\nHongkongers with a simple but reassuring retirement plan. This is to encourage
\nmore people to plan their retirement ahead, benefit from compound interest
\nreturn for a longer period, and utilise the best time to save for retirement.
\nWith the diversified Voluntary Health Insurance Scheme that FTLife offers, we
\nare confident to provide customers of different ages an ideal retirement
\nplanning package, helping customers achieve a stable and independent retirement
\nlife while protecting capital and against health risks.” <\/p>\n
\n <\/p>\n\u00a0 <\/p>\n
\n <\/p>\nFrom now until 31 March 2021, customers who
\nsuccessfully subscribe to Prosperous 2 as well as one of the designated Voluntary
\nHealth Insurance Scheme plans or insurance plans [5]<\/sup> (basic plan\/rider) can enjoy up to 15% of first-year premium refund [6]<\/sup> .<\/p>\n
\n
\n <\/p>\nImportant notes: <\/p>\n
\n <\/p>\n- \n
- The
\ninformation contained in this press release is intended as a general summary of
\ninformation for reference only. For details, please refer to relevant product
\nbrochures and client incentive leaflet. Please refer to the policy provision
\nfor full terms and conditions about FTLife “Prosperous Deferred Annuity Plan
\n2”.<\/li>\n - This
\npress release does not contain the full provisions of Prosperous Deferred Annuity
\nPlan 2 and the above-mentioned designated insurance plans, and the full terms
\ncan be found in the Policy documents.<\/li>\n - Prosperous
\nDeferred Annuity Plan 2 and the above-mentioned designated insurance plans may
\nbe purchased as \u00a0 a standalone plan
\nwithout bundling with other type(s) of insurance product.<\/li>\n - Prosperous
\nDeferred Annuity Plan 2 is a qualifying deferred annuity policy, but this does
\nnot mean that the qualifying deferred annuity premiums paid by the policyholder
\nand relevant persons are eligible for tax deduction. The nature of qualifying
\ndeferred annuity policy for this product depends on the product characteristics
\nand the certification issued by the Insurance Authority, and not on the
\nindividual circumstances of the policyholder and related persons. Policyholders
\nand the relevant persons should meet all eligibility requirements under the
\nInland Revenue Ordinance of the Hong Kong Special Administrative Region Inland
\nRevenue Department before claiming tax deductions. For
\ndetails on tax deductions, please visit Inland Revenue Department of HKSAR
\nwebsite www.ird.gov.hk <\/a> and
\nconsult your tax and accounting advisors for tax advice.<\/li>\n- FTLife does not provide any tax, legal or
\naccounting advice or consultation. If you have any questions, please seek
\nprofessional advice from your independent tax, legal and accounting advisors.
\nThe information in this press
\nrelease does
\nnot constitute any tax advice.<\/li>\n- For
\nfurther details, please contact FTLife’s Customer Service Hotline on +852 2866
\n8898.<\/li>\n- This
\ndocument is for distribution in Hong Kong only. It is not an offer to sell or
\nsolicitation to buy or provision of any insurance product outside Hong Kong.
\nFTLife does not offer or sell any insurance product in any jurisdiction outside
\nHong Kong, in which such offering or sales of the insurance product is illegal
\nunder the laws of such jurisdictions.<\/li>\n<\/ul>\n
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\n\n[1] Calculated based on
\nthe 5-year premium payment period and annual premium payment mode. Guaranteed
\nbreak even period refers to the policy year that the guaranteed cash value is
\nequal to or greater than the premium paid for the first time (refers to the
\ntotal amount of premium(s) due and paid for the basic plan. If customer partially
\nsurrenders this Policy, the total premiums paid will be proportionately
\nreduced.). <\/p>\n<\/div>\n\n[2] Calculation of total
\ninternal Rate of Return at maturity includes Guaranteed Monthly Annuity Payment
\nand Non-guaranteed Monthly Annuity Payment, and assumes that the Annuitant
\nreceives annuity payment on a monthly basis. Assuming the Annuitant is a 45
\nyears old non-smoker male at application, 3.28% of total Internal Rate of
\nReturn at maturity is calculated based on 9-year premium payment period with
\nmonthly premium payment mode and 10 years of accumulation period. While 4.32%
\nof total Internal Rate of Return at maturity is calculated based on 5-year
\npremium payment period with annual premium payment mode and 30 years of
\naccumulation period. This is calculated on a best estimate basis which is based
\non the current dividend scale and assume no cash withdrawal or policy loan
\nduring the entire policy and all premiums have been paid in full within the
\npremium payment period. The current dividend scale does not reflect future
\nperformance and is non-guaranteed. Please refer to the policy provisions for
\ndetails. <\/p>\n[3] <\/span>Terminal <\/span>Dividend is
\nnon-guaranteed and will be paid upon policy termination (except maturity) and
\npartial surrender. Please refer to the policy provisions for details of
\nTerminal Dividend. \u00a0\u00a0<\/span><\/div>\n\n[4] The
\n“Market Exclusive” item is the result comparing similar Qualifying Deferred
\nAnnuity Plan policies of major life insurance companies in Hong Kong, until 25
\nJanuary 2021. During Annuity Period, under the protection of (A) Travel Accidental
\nBenefit, disability of the Annuitant resulted from oversea accidents will be
\ncompensated and (B) Terminal
\nIllness Benefit, the Annuitant is diagnosed with Terminal Illness will receive up to 12
\nmonths of additional installment payments, are both exclusive in the market . <\/p>\n<\/div>\n\n[5] Voluntary Health Insurance
\nScheme Series: “TopCare” Medical Insurance Plan and “BetterCare” Medical
\nInsurance Plan; other designated insurance plans include Regent Insurance Plan
\n2 Series, Regent Prime Insurance Plan (Premier), Regent Elite Insurance Plan
\n(Premier), “HealthCare 168 Plus” Critical Illness Protector, MediGold Plus<\/i> Insurance Plan and “On Your Mind”
\nInsurance Plan.<\/p>\n<\/div>\n - FTLife does not provide any tax, legal or
- High market