Hong Kong’s MPF hits HK$1 trillion (US$129 billion) mark for first time, thanks to rally in investment markets, says head of pension regulator
- The compulsory retirement scheme that covers about 3 million Hongkongers is on course to join top 20 pension funds worldwide and is now the eighth largest in Asia
- On average, each member has HK$333,333 in their MPF account, while 62,900 people have over HK$1 million
The MPF, which turns 20 in December, has recorded a 15 per cent surge in asset values in the four months since April, bypassing HK$1 trillion for the first time since its foundation in the year 2000.
It puts MPF on course to join the top 20 pension funds worldwide. At US$129 billion, the MPF is now roughly the size of Denmark’s equivalent pension fund as of the end of last year, and is the eighth largest in Asia, behind two pension schemes in Japan and one in each of South Korea, mainland China, Singapore, Malaysia and India, according to data from pension consultant Willis Towers Watson.
At the current level, each member on average has about HK$333,333 in their MPF account, but some have a much larger share. At the end of last year the number of MPF accounts with more than HK$1 million stood at 62,900, up 40 per cent from a year earlier, Wong said.
“MPF scheme members should manage their MPF accounts properly because it provides savings for basic retirement protection after years of accumulation in the MPF system,” he said.