Retirement Savings Calculator
Project your retirement savings and the monthly saving required.
Input Data
Results
Retirement Savings: Contributions vs Investment Growth
At a glance:Retirement savings builds a retirement fund through 'regular contributions + compounding'. The core is the future value of an annuity: total at retirement = future value of monthly contributions + compound growth of current principal. In Hong Kong the Mandatory Provident Fund (MPF) is only the base layer of retirement protection (employee and employer each contribute 5%, capped at a relevant income of HK$30,000 a month, so up to HK$1,500 each, HK$3,000 total), and is generally insufficient for a comfortable retirement, so you need extra voluntary savings or contributions (TVC). Starting earlier gives compounding more time and a far larger fund.
Formula
Months to retirement n = (retirement age − current age) × 12; monthly rate r = annual return ÷ 12.
Contribution part (ordinary annuity FV): FV = PMT × ((1 + r)^n − 1) ÷ r.
Current principal part: FV_principal = PV × (1 + r)^n.
Total retirement savings = contribution FV + principal growth; investment growth = total − total contributed.
$$\\text{FV}_{\\text{Principal}} = PV \\times (1+r)^{n}$$How to Use
- Enter your current age and planned retirement age.
- Fill in current savings, monthly contribution and expected annual return.
- Total retirement savings and investment growth are shown instantly.
FAQ
Is the Hong Kong MPF enough for retirement?
Generally no. Under MPFA rules, employee and employer each contribute 5% of relevant income, capped at a relevant income of HK$30,000 a month, so up to HK$1,500 each, HK$3,000 total (minimum relevant income HK$7,100). The MPF is only the 'base layer' of retirement protection, and over 30-plus years the contribution is capped while inflation and living standards rise, so most people need extra voluntary contributions (TVC) or other savings.
How much retirement fund is enough?
A common estimate multiplies monthly retirement spending by the number of retirement years, or targets a replacement rate of pre-retirement income (e.g. 50%–70%). For example, HK$20,000 monthly spending over 25 years roughly needs HK$6 million (before inflation and investment return). Estimate your target, then use this calculator to back out the monthly saving. Consider lifespan, medical costs, inflation and whether you own property or an annuity.
How does inflation affect my retirement purchasing power?
Inflation erodes the real value of your fund. At about 3% long-term inflation, the same money's purchasing power roughly halves in about 24 years (rule of 72). So plan with a nominal return above inflation to preserve real purchasing power, and view the target in 'real return' (nominal minus inflation) terms. This calculator takes the nominal return; factor in future price rises when interpreting results.
Does this calculator include the MPF?
It does not compute the MPF directly. You can include your expected MPF balance in 'current savings' and your voluntary contributions in 'monthly contribution' to estimate total retirement assets. The mandatory MPF amount can be assessed with the Hong Kong salaries tax and MPF calculator.
What formulas and data does this calculator use?
It uses the standard ordinary-annuity future-value formula: contribution part FV = PMT × ((1+r)^n − 1)/r, and principal part FV = PV × (1+r)^n, where r = annual return ÷ 12 and n = years × 12; the total is the sum. MPF contribution rules follow the MPFA; personal-finance concepts follow IFEC guidance. Results are for estimation only; actual returns fluctuate.
Related Tools
References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.