Top-up scheme needed to protect employees, pension experts warn
Pension experts have told the Government it needs to encourage companies to better protect their workers by setting up retirement plans in addition to the Mandatory Provident Fund (MPF).
Grahame Stott, Asia-Pacific regional director at pension consultancy firm Watson Wyatt, said there was a pressing need for employers to implement their own pension schemes.
'The MPF is not going to provide enough savings to protect the retired lives of the three million workers in Hong Kong,' Mr Stott said.
The MPF, which was launched on December 1, 2000, is the first compulsory retirement scheme in Hong Kong. It covers 250,000 companies employing more than two million workers.
Another about one million are covered by pension schemes set up before the MPF.
Mr Stott said the MPF could not provide sufficient retirement protection to investors because contribution levels were too low. He said the shortfall would be felt in particular by low-income workers and employees who joined the MPF at middle age.
Under the law, employers and employees are obliged to each pay 5 per cent of the monthly salary into an MPF fund.
