Mrs Chan, 58: how to make the final push to retirement?

Mrs Chan is 58, seven years from retirement at 65. She holds about HK$1.56 million in liquid assets; after setting aside emergency funds and near-term expenses, around HK$1.2 million is available for retirement. Her adviser suggests she first pin down her target monthly spending in retirement, then allocate assets to match her risk tolerance — and keep using MPF as a long-term vehicle.

How much will retirement cost?

Start by estimating monthly living expenses after retirement. If Mrs Chan wants to maintain her current lifestyle at about HK$20,000 a month, 20 years of retirement needs roughly HK$4.8 million (before inflation). Her HK$1.2 million plus seven more years of contributions and returns may still fall short.

How should assets be allocated?

Those nearing retirement should gradually reduce portfolio volatility. The adviser suggests shifting part of her assets into bond and conservative funds, keeping some equity exposure for growth — but not taking excessive risk overall.

How can MPF help?

MPF’s disciplined monthly contributions are a key pillar of retirement savings. Mrs Chan should review her MPF mix to ensure the fund choices suit her time to retirement and risk tolerance.

What else matters?

Medical costs are the big uncertainty in retirement — keep an adequate buffer. Review progress regularly and adjust for market conditions to glide into retirement smoothly.

Review your MPF mix at MPF fund comparison.