# Savings and Retirement Tools in Hong Kong: A Side-by-Side Comparison

> TVC, QDAP, VHIS, savings insurance, time deposits, retail funds and the HKMC Annuity Plan compared on deduction, lock-up, guarantee, minimum, cooling-off, regulator and life stage. Rules and structure only, not returns.

- URL: https://wealthplan.hk/en/compare/
- Author: Life-Stage Planning Editorial (https://wealthplan.hk/about/)
- Reviewed by: Life-Stage Planning Editorial Editorial Board
- Published: 2026-11-04
- Updated: 2026-11-04
- Language: en

## Key takeaways

- Only three tools carry a deduction: TVC and QDAP share HK$60,000 a year; VHIS deducts HK$8,000 per insured person. Savings insurance, deposits, funds and the HKMC Annuity Plan deduct nothing.
- TVC (locked to 65) and QDAP (five-year premium term, ten-year annuity from 50) have the longest lock-ups; deposits and funds are the most liquid.
- Guarantees exist only in deposits (DPS limit HK$800,000), the guaranteed parts of savings insurance and QDAP, and the HKMC Annuity Plan's monthly payment.

## Main table

| Dimension | MPF TVC | QDAP | VHIS | Savings insurance | Time deposit | Retail fund | HKMC Annuity Plan |
|---|---|---|---|---|---|---|---|
| Question answered | Extra retirement pot at 65 | Regular annuity from 50 | Hospital reimbursement | Lump sum at a future date plus death benefit | Short-term capital preservation | Medium- to long-term growth | Lifetime monthly income from 60 |
| Deduction | HK$60,000 shared with QDAP | HK$60,000 shared with TVC | HK$8,000 per insured person | None | None | None | None |
| Lock-up | To 65 or statutory grounds | Premium term ≥5 years, annuity ≥10 years from 50 | None (annual renewal) | Contract term; early surrender loss | Term; early withdrawal forfeits interest | None (about T+2) | Lifetime; surrender value declines |
| Guarantee | None | Guaranteed annuity portion | Not applicable | Guaranteed cash value; bonuses non-guaranteed | Yes; DPS up to HK$800,000 | None | Guaranteed monthly payment |
| Minimum | None | Total premiums ≥HK$180,000 | Per product | Per product | Per bank | Per fund | HK$50,000; HK$5 million per person |
| Cooling-off | n/a | 21 calendar days | 21 days | 21 calendar days | n/a | n/a | Per policy |
| Regulator | MPFA | Insurance Authority | Insurance Authority | Insurance Authority | HKMA | SFC | Insurance Authority |
| Savings layer | Four | Three to four | Protection, not savings | Three | One to two | Three to four | Retirement cash flow |
| Main risk | Fund volatility | Non-guaranteed part, inflation, early surrender | Premiums rise with age | Early surrender, non-guaranteed bonuses | Reinvestment at lower rates | Market volatility | Inflation, liquidity |

## Reading the table

The deduction is worth the amount times the marginal rate: HK$60,000 saves HK$10,200 at 17% but only HK$1,200 at 2%, so lock-up, not tax, should decide. Guarantees come from different sources: the bank and the Deposit Protection Scheme for deposits, policy terms for the guaranteed parts of savings insurance and QDAP, and HKMC's subsidiary for the public annuity; TVC and retail funds guarantee nothing, and VHIS guarantees renewal rather than money. By stage, a single person starts with deposits, VHIS and MPF; a couple adds TVC for the higher earner; a family adds VHIS for children and term life for the gap; pre-retirees use TVC and QDAP; retirees hold a cash bucket and consider the HKMC Annuity Plan for longevity.

## Sources and dates

- Allowances, Deductions and Tax Rate Table (PAM 61(e)) — Inland Revenue Department (IRD) 2026-08 https://www.ird.gov.hk/eng/pdf/pam61e.pdf
- What is a qualifying deferred annuity policy (QDAP)? — IFEC 2019-03-27 https://www.ifec.org.hk/web/en/managing-your-money/qdap-tvc/what-is-qdap.html
- HKMC Annuity Plan — HKMC Annuity Limited current https://www.hkmca.hk/eng/our_business/hkmc_annuity_plan.html
- Implementation of first phase of enhancement measures of Deposit Protection Scheme — HKMA 2024-10-01 https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/10/20241001-3

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