Retirees would be able to withdraw money from their Mandatory Provident Fund accounts in instalments instead of as a lump sum under a proposal by the pension fund regulator yesterday.
Anna Wu Hung-yuk, chairwoman of the Mandatory Provident Fund Schemes Authority, said this would allow retirees to choose the best and most profitable time to cash out.
She floated the idea a day after proposing that Hongkongers should be able to withdraw money before reaching the retirement age of 65, for reasons including serious illness and paying for children's studies.
'At present, a person can only withdraw the money from the MPF all at once when he retires. We are proposing to allow phased withdrawals from the scheme,' she said.
'People would be able to cautiously choose the right time to withdraw from the fund when they think the timing is right, when they think they can earn a bigger profit.'
If enacted, the regulator's proposals - which will be put up for public consultation later this year - would be the first major amendments to the pension fund since its launch in 2000.
Wu said she understood many residents' criticisms of the fund for not providing adequate money for their retirement. 'The fund has run for merely 10 years. I believe the benefits for retirees will improve after 20 years or 30 years,' she said.