In short, when the price of most goods and services go up but the amount of your wealth remains at the same level, you will need to pay more for the same quantity of goods and services. Sometimes, prices go up at a significant rate, so before you know it, your money will buy much less than it does today.
Years / Inflation p.a.
2%
4%
6%
8%
10%
5
HK$904
HK$815
HK$734
HK$659
HK$590
10
HK$817
HK$665
HK$539
HK$434
HK$349
15
HK$739
HK$542
HK$395
HK$286
HK$206
20
HK$668
HK$442
HK$290
HK$189
HK$122
25
HK$603
HK$360
HK$213
HK$124
HK$72
For instance, if you put HK$1,000 in a safe and assuming inflation averaged 6% per annum, the purchasing power of that HK$1,000 would erode to just HK$539 over ten years
To ensure your wealth grows with inflation, you have to put together an investment portfolio that beats the inflation rate.
Flexible financial planning can help you achieve your financial protection, wealth and retirement goals throughout different stages of your life. AXA's 5 steps financial planning process helps you design a plan that best meets your personal needs. We are happy to provide consultation service to you free of charge and your personal information will be kept confidential.
Life insurance plans are offered by AXA China Region Insurance Company Limited and AXA China Region Insurance Company (Bermuda) Limited while investment-linked plans are offered by AXA China Region Insurance Company (Bermuda) Limited. Mandatory provident fund products are available through AXA China Region Insurance Company Limited while our occupational retirement scheme product is available from AXA China Region (Bermuda) Limited. Investment advisory and asset management services are being offered by and are available through AXA China Region Investment Services Limited.
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For references only, you should select your investment portfolio according to your personal situations.
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The facts and opinions are for general information only and should not be construed as investment advice nor intended to be an invitation to invest. We will not be responsible for any direct or incidental loss incurred by applying any of the information herein.
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Each investment is subject to market and exchange rates fluctuation and to risks inherent in all investments. The prices of investments or units of any investment fund may go down as well as up. For further details, please refer to the principal brochure or offering document of the relevant insurance, retirement or investment products.
