FOR many people, contributing to a pension fund is the biggest ongoing investment. However, in times of low interest and high inflation, there is a risk of being disappointed when the time comes to collect.
This problem is even more serious for expatriate workers. Pension funds are set up to provide retirement benefits to employees leaving a company after many years of service, so those who change jobs frequently may not get the returns they were expecting.
Furthermore, lump sum payments are only tax-free after 10 years of contributing; for a shorter period, the portion paid by the employer attracts tax.
And there is one more drawback facing expatriate workers.
Traditionally, Hong Kong-based provident funds do not attract salaries' tax at retirement, but this benefit is not available to workers who have left.
moved away.
For the reasons mentioned above, As a result, off-shore pension schemes would appear to be the best option for expatriate workers.
