To tackle the demographic shift in the ageing of the population, governments around the world have jumped on the bandwagon in recent years to develop mandatory retirement planning systems. Though many, compared to the Mandatory Provident Fund, are ahead of the curve in terms of product range, regulatory sophistication and asset holding, aspects of Australia's Superannuation programme have been shown to mirror best the evolution of Hong Kong's MPF system. 'The pace of development is quite similar,' Bonnie Tse, senior vice-president and managing director of AIA Pension and Trustee, says. Funds for the Superannuation programme grew 128 per cent in the seven years after its launch, before market consolidation reduced the pace of growth. Between 2002 and last year, funds in Australia fell by 57 per cent, she says. 'Hong Kong is currently undergoing an expansion phase. We have seen funds grow 88 per cent in the last 10 years, but it will probably slow down once providers begin to enjoy critical mass,' she adds. 'Part of the reason why Australia's superannuation fund has been so successful can be attributed to tax concessions which encourage people to save more. We hope the Hong Kong government can do more on this,' Tse says.