The Mandatory Provident Fund (MPF) is a compulsory pension fund designed by the Hong Kong government as a major protection scheme for the aged and retired residents.  Most employees and their employers are required to contribute monthly. 

MPF has failed Hong Kong's workers, so why ask them to pay even more?

Hongkongers have little confidence in the MPF. Photo: Bloomberg

The new chairman of the Mandatory Provident Fund wants to raise the amount workers contribute to their pensions. But he has inadvertently put his finger on the reason why it should not happen.

Friday, 1 May, 2015, 12:51am 14 comments

Hong Kong’s MPF pension fund bleeds red; average returns at meagre 0.07 per cent

David Wong Yau-kar, the new chairman of the MPF. Photo: Simon Song


Many Mandatory Provident Funds bled red ink in March with average returns at a measly 0.07 per cent, making it the worst month for Hong Kong’s pension scheme this year as poor performance in bonds and weak overseas stock markets hobbled the plan, according to data company Lipper on Thursday.

2 Apr 2015 - 5:16pm

Low cost core fund for pension savers comes late but is welcome

As the pension owner ages towards retirement, the fund will gradually shift from stocks to bonds. Photo: K.Y. Cheng

Since its inception in 2000, the Mandatory Provident Fund has been a bonanza for the financial services industry.

19 Mar 2015 - 7:49am 4 comments

Simpler, cheaper investment option for Hong Kong Mandatory Provident Fund has strong support

Cheng Yan-chee, an executive director of The Mandatory Provident Fund Schemes Authority, said the authority hopes to launch the new "core fund" option. Photo: Bloomberg

Authority said more than 80 per cent of the 266 respondents to its consultation last year favoured the core fund.

13 Mar 2015 - 3:32am 2 comments

MPF funds performed better in February, beating Hang Seng Index

Tokyo stocks rose 0.73 percent on February 23, extending a 15-year high on news that eurozone ministers tentatively agreed to extend Greece's bailout by four months, giving it some crucial breathing room. Photo: AFP

A stronger stock market rally in the West and Japan last month boosted the Mandatory Provident Fund’s average return, which bounced back to 1.99 per cent, according to data company Lipper on Tuesday.

3 Mar 2015 - 5:07pm 1 comment

Hong Kong must reach consensus on making retirement less stressful

Hong Kong must reach consensus on making retirement less stressful

How much money is needed for a decent life in retirement? That is the vexing question facing many in Hong Kong.

17 Feb 2015 - 7:50am

Hong Kong retirees to be allowed to withdraw MPF in instalments

Employees will soon be able to make withdrawals from their Mandatory Provident Fund at their retirement in installments at least four times a year. Photo: Nora Tam

Employees will soon be able to make withdrawals from their Mandatory Provident Fund at their retirement in installments at least four times a year, instead of the current practice where they can only take one lump sum.

13 Feb 2015 - 7:46am 2 comments

Offset mechanism must go for a fair MPF

The MPFA has done a lot to improve the MPF but more needs to be done. Photo: Shutterstock

The pension regulator has made a lot of changes to improve the image of the Mandatory Provident Fund but it would be hard to fully restore its popularity unless the unfair offset mechanism is scrapped.

9 Feb 2015 - 12:27pm 1 comment

Terminally ill Hong Kong workers to gain right to access MPF contributions

Doctors and MPF providers have been consulted on a proposal that will allow terminally ill workers to cash in their pension funds. Photo: David Wong

Workers who suffer a terminal illness will soon be able to cash in their Mandatory Provident Fund in a move that would free up account holders' money for costly medical bills, the South China Morning Post has learned.

9 Feb 2015 - 7:32am 7 comments

MPF returns just 0.63 per cent in January; 2014 returns lowest in three years

Last year’s MPF return of 1.5 per cent was the lowest in three years.

The Mandatory Provident Fund saw modest average returns of 0.63 per cent in January, sharply down from last year’s return of 1.5 per cent.

4 Feb 2015 - 8:43am 3 comments

You can bank on knowing which master Hong Kong’s MPF watchdog serves

Hong Kong's MPF scheme is storing up plenty of headaches for workers. Photo: Bloomberg

Watchdog moves to lessen MPF risks

SCMP headline, January 26

Yes, a watchdog alright. And this watchdog, the Mandatory Provident Fund Schemes Authority, keeps a very tight watch for its masters, the big bank managers of MPF money, on any threat to their thieving high fees.

26 Jan 2015 - 8:21pm 5 comments

MPF watchdog in talks with pension chiefs on plans to lessen risks

Mandatory Provident Fund Schemes Authority said it is in advanced talks with pension providers on reform plans. Photo: Dickson Lee

An overhaul of the Mandatory Provident Fund scheme is being readied in a bid to stop 600,000 of the city's most passive pension savers being pushed into some of the most high-risk, high-cost investment schemes in the market.

26 Jan 2015 - 5:41pm 4 comments

Average MPF return just 1.5 per cent last year

Hong Kong dollar bond funds gained 3.31 per cent last year. Photo: Bloomberg

Average overall returns for Mandatory Provident Fund schemes last year stood at 1.5 per cent, the lowest in three years, according to data company Lipper.

The return was better than the Hang Seng Index's 1.3 per cent gain for the year, but the inflation rate for the first 11 months of last year was 4.4 per cent. December's inflation figure has not yet been released.

6 Jan 2015 - 1:14am

MPF schemes averaged gain of just 0.65 per cent in November

The 2.55 per cent MPF return for the first 11 months of the year compares with an inflation rate of 4.3 per cent in the first 10 months. Photo: Sam Tsang

Mandatory Provident Fund schemes performed poorly last month, with the average retirement fund gaining just 0.65 per cent from the previous month and looking set to end the year on a dismal note.

5 Dec 2014 - 2:18am 4 comments

Fragmented market's MPF mergers to be big win for workers

AIA is a key MPF player in the city, with 9.8 per cent of assets.

Consolidation of the fragmented Mandatory Provident Fund market has finally happened and it is going to be good for our employees.

11 Nov 2014 - 5:33am