Introduction to Retirement Plan Calculator

The "Retirement Plan Calculator" consists of five parts:  Personal Data, Retirement Reserve, Pension Plan, Personal Savings and Investments, and Other Retirement Income

All you need to do is enter the relevant information, Retirement Plan Calculator will provide an analysis report and action plan to help you improve your retirement plan.

The personal data and answers you enter will only be used for one-time analysis and the Investor and Financial Education Committee will not store your information and reports.

The information you provide on the Retirement Plan Computer may involve sensitive personal data. You should refer to the following measures to protect your data from unauthorized or accidental access, processing, deletion, loss or use:

Avoid using Retirement Plan Calculator in public places,

Store your downloaded files to a safe location so that a third party does not consult them;

Don't leave your computer unattended when using a retirement plan computer;

When you're done, remember to log off or close all browsers immediately and properly;

Install reputable anti-virus or security software for your computer.

Assumptions and calculation methods

Default Value

The following items have default values that allow the user to change the values themselves:

Expected inflation rate (per year)

Annual rate of return on investments expected after retirement

Expected annual pay increase

Expected annual rate of return on MPF investments

Expected annual rate of return on personal savings and investments

Estimating MPF equity

The amount of the mandatory contribution shall be calculated at the current statutory minimum and maximum relevant income levels (i.e. $7,100 and $30,000 per month respectively). The inflation rate derived from the annualized Composite CPI over the past decade will be automatically adjusted every four years;

Year-end bonuses (if any) will be included in the relevant income in the last month;

Voluntary contributions, if any, are calculated as a percentage of the relevant monthly income. There is no ceiling on voluntary contributions and the full amount of contributions is attributable to the contributor;

Special voluntary contributions ( if any) are calculated in the form of fixed contributions;

Mandatory contributions, voluntary contributions and special voluntary contributions are paid on a monthly basis and will continue until retirement age;

the "existing MPF balance" entered by the user will be attributed to the user in full;

During the estimated period, the user did not offset the long service payment/severance payment with MPF, did not default on the contribution, was not employed intermittently, and did not withdraw the MPF accrued interest early.

Expected benefits to other pension plans

Different pension schemes (e.g. occupational retirement schemes, civil service pension schemes, subvented/subsidized school provident funds, etc.) have different methods or benchmarks for calculating and determining the interests of members. Therefore, this computer does not calculate the estimated benefits of these pension schemes. Users can ask their pension plan provider or employer how to calculate the amount they receive at the time of their expected retirement and then fill in the relevant figures.

Your savings and investments

Assume that monthly savings and investments, if any, will continue until retirement age.

Results of the calculation

The "expected amount of retirement" is equal to the expected MPF/Occupational Retirement Scheme equity/civil service pension scheme to receive an overpayment or subvented/subsidized school provident fund equity, plus the sum of the expected cumulative amount of your savings and investments.

The "expected amount of retirement" is equal to the total expected retirement expenses, less the monthly pension received after the expected retirement and other income after the expected retirement. If the total "expected retirement expenditure" is less than the sum of "expected monthly retirement pension" and "other income expected after retirement" the "expected amount of retirement" will be negative. Please note that the "expected total retirement expenditure" does not include inheritance and burial expenses.

The figure for the amount owed at retirement and the current annual salary calculation is for reference only, and this annual salary figure does not include an increase in the annual salary.