HKMC Annuity, wholly-owned by the Hong Kong Mortgage Corporation, launched the HKMC Annuity Plan today which offers retirees a way to turn part of their savings into streams of stable income.

The life annuity scheme, which is an insurance product, is open to Hong Kong Permanent Residents aged 65 or above.

Those under the plan can immediately receive a guaranteed stream of fixed income after paying a single premium between $50,000 and $1 million.

Due to the longer life expectancy of women, men will receive a monthly payout of $5,800 while women will get $5,300 for the rest of their lives when they pay a premium of $1 million.

Applicants can fill out and submit subscription forms at designated bank branches or register their intent to subscribe at the corporation's website from July 19 to August 8.

Random balloting will be conducted to determine the application sequence.

Applicants will receive the allotment results in succession from mid-September, and sales meetings will be arranged to complete the application procedures.

At the launch ceremony, Financial Secretary Paul Chan said if the plan is oversubscribed, the corporation is prepared to double the first tranche quota to $20 billion.

The Monetary Authority said it will invest and manage the premium to provide a solid foundation to ensure the viability and sustainability of the plan.

Details will be available on the annuity website from July 9.