A US Town’s Pension Ran Dry — Could It Happen in Hong Kong?

A US Town’s Pension Ran Dry — Could It Happen in Hong Kong?

In late 2010, Prichard, Alabama saw its pension fund run dry, and the city stopped sending monthly cheques to 150 retired workers — breaking state law. A retired fire captain went back to work as a mall guard; one filed for bankruptcy; a retired fire marshal was found dead in a house with no electricity or running water.

How did it get that bad?

Experts had warned the fund would be exhausted by 2009; the city did nothing and twice sought bankruptcy protection. An extreme case — but proof the unthinkable can happen.

How is Hong Kong’s MPF different?

MPF uses individual accounts — your contributions are yours, and no employer or government fiscal crisis can cut them off. But returns carry risk and are not guaranteed; adequacy depends on how much you put in and where.

How to make your own retirement safer?

Contribute early, choose suitable funds, review regularly. Compare MPF funds on long-term performance.