New HSBC plan golden years

Hongkong and Shanghai Banking Corp has launched an annuity insurance plan that aims to attract people aged between 50 and 75 with an offer of a monthly income after retirement.

"We target customers who have already saved for years and are approaching retirement," Bruno Lee Kam-wing, head of wealth management personal financial service Asia Pacific, said yesterday.

The EarlyIncome Annuity Plan requires a shorter accumulation period of premium - one year to three years - so people receive lifelong income stream earlier than under HSBC's current plan.

Customers who pay a premium of at least HK$130,000 per year can receive a monthly annuity at the end of the third year.

Alternatively, they can pay a lump sum of HK$390,000 and receive a monthly payment one year later.

Customers can choose to receive the monthly annuity payment for 20 years or up to age 99.

Those choosing the option of an annuity for 20 years receive a minimum monthly guaranteed payment of HK$2,000.

People who aim for an annuity until age 99 are guaranteed HK$1,500 a month.

There is an offer of a 4-percent discount off the first year annual premium until April 30.

The annuity plan does not require medical examination, but it does feature life insurance protection.

HSBC was the largest life insurer in Hong Kong gauged by new individual insurance regular premiums in 2010.

Its annuity business accounted for nearly half of its life insurance revenue, Lee said.