A Couple’s Guide to Retirement Planning in Hong Kong

Planning for retirement is important as more residents live longer and face increasingly complex financial landscapes. According to the International Monetary Fund, the number of elderly adults in Hong Kong is expected to increase by 25% by 2030. This figure highlights the need for secure plans and legal safeguards.

With this in mind, couples should prioritise both building their wealth and legally documenting their intentions to avoid uncertainty later in life. A key part of protecting your shared future is having a comprehensive estate plan in place. This includes a valid Will, an Enduring Power of Attorney that complies with Hong Kong law, and an Advance Directive.

With that said, this article provides a practical guide to estate planning for couples approaching retirement, helping you achieve clarity, certainty, and peace of mind.

Why Making a Will Is Essential in Hong Kong

For couples in Hong Kong, retirement planning should go hand in hand with making a legally valid Will. While building wealth is important, ensuring that your assets can be accessed and distributed smoothly after your passing is equally critical. Under Hong Kong law, assets cannot simply be transferred to your spouse or children without going through the proper legal process.

Creating a valid Hong Kong Will ensures that your retirement funds, MPF, bank accounts, property, and overseas investments are distributed according to your wishes, reducing delays and uncertainty during probate.

Retirement Planning for Couples

Estate planning for couples in Hong Kong involves coordinating financial goals, understanding joint property obligations to ensure long-term needs are met. Effective coordination requires open communication and regular review of assets. By making joint decisions early, couples can avoid emotional and financial stress later in life.

That said, here are the things to consider when planning for retirement:

Retirement Funds

In Hong Kong, one key aspect of retirement is the Mandatory Provident Fund (MPF) system. It is a compulsory retirement fund scheme designed to provide a basic income stream in retirement. In an article from The Standard, the pension fund reported a net return of 16.5% in 2025, highlighting its significance as a long-term investment.

For couples approaching retirement, it is important to review your MPF and any other provident fund accounts. You may wish to consider consolidating multiple accounts into one for ease of management and administration. Ensure that all MPF and provident fund accounts are properly recorded in your List of Assets so your executors can easily locate them and administer them accordingly.

As MPF schemes do not allow you to directly appoint beneficiaries in the same way as certain insurance policies, the benefits will generally form part of your residuary estate and be distributed in accordance with the provisions of your Will.

Pensions and Annuities

In addition to the MPF, some residents receive pension benefits through government or employer-sponsored schemes. These pensions become an important part of a couple’s retirement income. Legal considerations arise when pensions have designated beneficiaries or specific payout conditions after death.

According to an AIA Insurance survey, 60% of respondents have not yet begun any formal preparations for their future. With that in mind, including clear instructions in your valid Will early prevents potential conflicts with Hong Kong provisions.

Overseas Retirement Accounts

Couples with international assets should carefully navigate cross-jurisdictional rules that may affect the management and succession of their overseas holdings. For retirees with foreign pensions or investment accounts, different probate procedures and taxation regimes may apply. Including clear provisions in separate jurisdiction-specific Wills helps ensure enforceability and smoother administration across relevant countries.

Without proper legal documentation, conflicts of laws or unintended tax implications, may reduce the value or delay the distribution of overseas assets. Clear instructions regarding foreign accounts and well-defined beneficiary arrangements help align your international assets with your overall estate and retirement plan.

Many Hong Kong residents approaching retirement hold assets in multiple jurisdictions, including the UK, Australia, or other common law countries. In such cases, preparing separate Wills for different jurisdictions can minimise probate complications and reduce legal conflicts. Coordinating your retirement and cross-border estate planning ensures greater certainty and efficiency for your family.

Enduring Power of Attorney and Advance Directives

After retirement, couples should also consider what happens if one partner loses mental capacity due to illness, accident, or ageing.

An Enduring Power of Attorney (EPA) allows you to appoint a trusted person to manage your property and financial affairs if you become mentally incapable. In Hong Kong, an EPA must comply with statutory requirements and be properly executed to be legally effective.

An Advance Directive allows you to document your medical treatment preferences in advance. This ensures your healthcare wishes are respected if you are unable to communicate your decisions in the future.

Both documents work alongside your Will to form a comprehensive retirement and incapacity protection plan for couples.

Learn more about our Enduring Power of Attorney service in Hong Kong.

Tax and Legal Considerations

Hong Kong enacted the Revenue (Abolition of Estate Duty) Ordinance in 2006, eliminating inheritance tax or estate duty on the estates of the deceased. While it enhances the efficiency of wealth transfer, other legal fees and cross-border tax implications may arise with overseas assets involved.

For couples planning their retirement in line with Hong Kong laws, a valid Will should comply with requirements signed by independent witnesses. Under the Wills Ordinance (Cap. 30) of Hong Kong, a Will must be signed by the testator in the presence of two independent witnesses who also sign in the testator’s presence for it to be legally valid. This ensures that your funds, pensions, and other assets are distributed according to you and your partner’s wishes.

Practical Tips for Couples

To ensure you and your partner stay align in both individual and joint retirement plans, here are a few tips to maintain transparency:

• Review all financial accounts and plans to fully understand the retirement picture.
• Communicate openly with your partner about asset distribution, legacy goals, and retirement expectations.
• Update wills and beneficiary designations after major life events or changes in life.
• Use professional estate planning services to ensure legal compliance and enforceability with Hong Kong and international jurisdictions.

What Happens If You Do Not Have a Will in Hong Kong?

If a person passes away without a valid Will in Hong Kong, their estate will be distributed according to the Intestates’ Estates Ordinance. This means the law determines who inherits, regardless of your personal intentions.

For married couples, this does not automatically mean the surviving spouse receives everything. The estate may be divided between the spouse and children under statutory rules. This can create complications, especially where retirement accounts, property, or overseas assets are involved.

In addition, the family must apply for Letters of Administration instead of probate, which can result in delays before bank accounts and MPF funds can be accessed. Proper retirement planning should therefore include drafting a legally valid Will to streamline the probate process and protect your surviving spouse.

Secure Retirement Years and Beyond with NobleWills

As a couple, planning for retirement comes with shared responsibilities and long-term considerations, especially when assets are involved. As the retirement age approaches, putting clear legal structures helps prevent uncertainty, ensuring both parties’ wishes are respected. A valid Will provides clarity and lessens disputes in Hong Kong or an international context.

NobleWills provides professional guidance to assist you and your partner to created legally sound Wills. We simplify the estate planning process so you can focus on retirement with confidence. To get started, set up your account and start writing your Will today!

Frequently Asked Questions (FAQs)

Here are answers to commonly asked questions about retirement planning:

What is the main goal of retirement planning?

The main goal of retirement planning is to ensure financial security during retirement while also preparing for the orderly transfer of assets upon your passing.

How to plan for retirement?

Plan for your retirement by assessing future expenses, building diversified savings, and aligning investments with your timeline. You should also document asset distribution and beneficiary intentions early on.

Can couples have joint wills in Hong Kong?

Couples can create joint wills, but they are generally not recommended due to limited flexibility. Separate wills usually provide clearer control and easier updates for each individual.

Do MPF benefits bypass probate in Hong Kong?

MPF benefits generally form part of your estate and are distributed according to your Will. Without a Will, they will be distributed under intestacy rules, which may not reflect your personal intentions.

What happens if I die without a Will in Hong Kong?

If you die intestate (without a Will), your estate will be distributed according to statutory rules under Hong Kong law. Your spouse may not automatically inherit everything, and your family will need to apply for Letters of Administration before assets can be accessed.

Can I make a Will online in Hong Kong?

Yes, you can prepare a Will online, provided it complies with Hong Kong legal requirements. The Will must ultimately be printed and properly signed in the presence of two independent witnesses to be valid.