Retirement Migration 101

Tired of long working hours, high commodity and property prices in Hong Kong? Everyone would love to enjoy their lives during golden age after working for a long time. According to a survey, more than 40% Hong Kong people consider to move abroad for retirement. The younger and higher-educated Hong Kong people, the higher the desire of migration.

Local welfare should be considered

When we talk about migration, what will pop up in your mind first? Most people regard the price level, living environment, living conditions, political atmosphere and so on. However, planning for retirement must also consider the local welfare.

For example, Malaysia is always welcoming retirees from all over the world to move to their country. Indeed, if you want to move to Malaysia, the benchmark is not that high. As long as you have at least RM300,000 deposit (i.e. about HK$600,000), and guarantee at least RM150,000 deposit (i.e. about HK$300,000) in one year, you will be issued a 10-year visa in Malaysia. However, the biggest problem is that having a visa does not mean that you can enjoy their public medical services and social welfare. It is definitely a drawback for immigrants.

In Western countries, medical equipment is relatively advanced, but in the same way, medical expenses are quite high. Therefore, in order to have a carefree retirement in foreign countries, the best solution is to ensure that you have sufficient amount of money for medical expenses, and purchase an appropriate medical insurance.

Consider your existing insurance plans and assets before migration

If you have bought life, accident or critical illness insurance in Hong Kong, some products can still provide you coverage all around the world. However, you should pay more attention while dealing with medical insurance. Most of the medical insurance plans are reimbursed for actual expenses, and the medical services charges worldwide can be totally different. You should check the details of the insurance plans carefully.

Regarding the increase in demand of retirement migration, insurance companies have launched more medical insurance products with a more comprehensive coverage. Some products cover several popular migration locations, such as Taiwan, Japan and Singapore. Some of these insurance plans may fully pay for the surgical and medical expenses of standard private wards, so you are not limited to choose the public medical services. At the same time, it may also provide a worldwide lifetime protection of up to HK$100 million, which can better protect the migrants for retirement.

In addition, if you plan to migrate, you should be aware of the tax issue. Many Hong Kong people plan to move to the UK for retirement. However, the UK imposes worldwide taxation. If you own Hong Kong properties, stock or other equities after migration, you could be levied! Therefore, remember to plan your assets carefully before moving to other countries.


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