Self Invested Personal Pension (SIPP)

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  1. #1

    Join Date
    Aug 2009
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    1,675

    Self Invested Personal Pension (SIPP)

    In Hong Kong, is there an equivalent of a UK Self Invested Personal Pension (SIPP)? I.e. a private pension vehicle that you have huge investment flexibility in (compared to MPF)?

    My understanding is the answer is probably "no", given that one of the major attractions in the UK of a SIPP is the tax-free wrapper (until retirement); whereas in HK with no CGT and minimal taxation, why would you need such a wrapper (with the added restriction that you cannot touch it until a fixed retirement age) - i.e. you would just make your own investments directly into funds / shares / cash / other assets etc. (also with no restriction on when you want to turn them into cash and access it)

    Thoughts welcome if I have missed a trick on the options in HK for pensions vehicles, that are beyond MPF.


  2. #2

    Join Date
    Nov 2007
    Location
    Wanchai
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    5,063

    Probably best to email a pension specialist such as Sovereign, they may have something similar to this but like you say i don't know why you would need it as a HK resident. I suspect their products are targeting expats in other countries in the region.


  3. #3

    Hi Dossier,

    You can setup your own private investment portfolio as your own private pension plan, choices of investment ranging from Equity, Funds, ETFs, Bonds, and other Fixed Income investments, etc.. to suit the investor (yours) own goal and risk preferences, and nearly all of those available for you to access to in Hong Kong are SFC approved, you can certainly except a better return than any funds available on MPF or sovereign bonds.

    You can walk into your bank and open an additional account as your own Pension Account if you can keep up the contribution discipline, or alternatively, insurance companies in Hong Kong also provide similar sort of pension program that allows you to make your own investmenr choice.

    Hope it helps....


  4. #4

    Join Date
    Nov 2007
    Location
    Wanchai
    Posts
    5,063

    Yea thats pretty much what i'm doing at the moment, investing monthly in blue chip HK dividend paying equities