Hongkongers’ MPF funds should not be used to buy property, says OECD pensions chief
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Singaporeans can use their pension pots to buy homes, but Pablo Antolin says Hong Kong’s MPF cannot afford such withdrawals, given the current contribution rates
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Head of OECD’s private pensions unit is in Hong Kong along with hundreds of pension experts to give suggestions on how to improve city’s public pension provisions
Singaporeans can use their pension pots to buy homes, but Pablo Antolin says Hong Kong’s MPF cannot afford such withdrawals, given the current contribution rates
Head of OECD’s private pensions unit is in Hong Kong along with hundreds of pension experts to give suggestions on how to improve city’s public pension provisions
Hong Kong should follow Singapore and other markets in allowing people to pay more into their Mandatory Provident Funds (MPF).
But it should not allow employees to take money out their pension pools to buy their own homes, according to an Organisation for Economic Co-operation and Development (OECD) pension expert.
Pablo Antolin, principal economic and head of OECD Private Pension Unit, said if Hongkongers were allowed to withdraw money from the pension system as initial down payments on first homes or for their children’s education, it would further reduce the scheme’s ability to cover future liabilities, given it’s already among the lowest worldwide.
“Money in a retirement plan should be used for retirement only,” he said in Hong Kong on Tuesday, adding the OECD does support withdrawals for those suffering serious illness or bankruptcy.
Hong Kong’s Mandatory Provident Fund Schemes Authority revealed earlier this year it had been assessing whether to allow first-time buyers to use their accrued funds as down payment – as Singapore already does. But it scrapped the plan in May because of worries that would only fuel the red hot property market further.