MPF pension funds account for less than 10 per cent of Hongkonger's retirement savings, survey shows
- MPF pension funds are a third choice of retirement savings for Hongkongers, according to an investment funds association survey
- Bank deposits account for 53 per cent of Hongkongers’ retirement savings, while 21 per cent goes into stock investments
Pension funds are a third choice for Hong Kong’s working population in terms of allocating their retirement savings, according to the Hong Kong Investment Funds Association (HKIFA).
They put aside about 9 per cent of their savings in the city’s Mandatory Provident Fund (MPF) and other pension plans, the industry body said, based on responses from an online survey of more than 900 people during the fourth quarter last year. Some 53 per cent of their savings are loaded in bank deposits and 21 per cent in stock investments.
The MPF’s track record has been volatile in recent years, raising questions about its ability to provide Hongkongers with enough coverage in their golden years. Last year, the fund generated an average return of 12.6 per cent from its investments, its third-best showing in a decade, compared with an 8.3 per cent loss in 2018.
“The working population believes that post retirement income will come from multiple sources, and relying on MPF alone will not be sufficient,” Terry Pan, who chairs the pensions sub-committee at HKIFA, said at a media briefing.
That may have to do with the perception on returns from MPF compared with other investments, he added.