We apply a 70% replacement ratio for post-retirement spending as market consensus believes most people need approximately 70% of their current spending to maintain reasonable post-retirement living standards. Therefore, in this retirement calculator, “Monthly income required at retirement” equals to 70% of the “Current monthly expenses” regardless of inflation impact. “Current monthly expenses” is also used for calculating “Total required at retirement”, but not used for calculating “Total available at retirement”.
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Annual Inflation Rate
3.12% per annum, based on the average composite consumer price index since 2017.
Source: BCT Financial Limited, Census and Statistics Department, data as of 31st Dec 2017
Expected annual MPF/ORSO return
The default return is based on the average of the 3-year annualized return of BCT’s constituent funds under respective risk category that matches the result of the questionnaire. If the result of the questionnaire is risk category 4, then the default return is the average of the 3-year annualized return of BCT’s constituent funds under risk category 4.
Life Expectancy
Life expectancy at birth for male in 2017: 81.5 years
Life expectancy at birth for female in 2017: 87.5 years
Source: Census and Statistics Department, data as of 30th September 2017
Special Voluntary Contribution (SVC)
A fixed amount contributed to MPF account in addition to mandatory and any voluntary contributions.
SVC are paid directly by the employee to trustee without going through the employer. Making contribution and withdrawing accrued benefits are neither tied to employment nor subject to preservation requirements.
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Introduction
Retire on Your Own Terms – Let BCT help you plan a fulfilling retirement
Whether you are just starting to work or you are well into your career, now is a good time to discover if you are on the right track to retire comfortably. Use the following resources and find out what you need to live your dream retirement.
Take the first step to your retirement planning
Living for another 30 to 40 years after work is not impossible. Want to know whether you are on the right track and how should one start preparing?
What type of investor are you?
All investments involve risk and risk tolerance varies by individuals. Depending on your retirement goals, income, age and investment aggressiveness, you will fall into one of the following categories. Select the option that applies most to you:
Are you on the right path for retirement?
No matter your age, it's always a good idea to make sure you’re on track for retirement. Use our retirement calculator to find out how much you need to live the retirement you want and how to get there.
