Approaching retirement? Shift your MPF from attack to defence — four scenarios, four playbooks

Under MPF law, workers can only withdraw accrued benefits at 65. Rather than gaming the system for early access, mid-life members do better managing their MPF portfolios — neither neglecting them nor acting rashly amid volatile markets.

What if retirement is 3 to 5 years away?

AIA (Trustee) CEO Bonnie Tse advises starting the shift after 50, gradually moving assets into lower-risk fund types such as bond and conservative funds. Reallocating only now is too rushed and risky, she said; such members should seek professional analysis based on age, risk tolerance and when they need the money.

What about 5 to 10 years to retirement?

Advisers generally expect emerging and Asian markets to beat Europe and the US over the medium to long term — members already holding such equity funds who can stomach short-term swings need not move now. Haitong International’s Wong Wai-keung suggests an 80/20 equity-bond split for those with few assets outside MPF who can afford to be bolder, shifting toward bonds with age until a 20/80 split 2 to 3 years before retirement. Those with over HK$1 million outside MPF need less equity exposure within it.

What if MPF savings are modest and assets limited?

Such members should review their portfolios early, consider voluntary contributions, and adjust the equity-bond mix dynamically through life stages. Whatever the scenario, regular reviews are key: compare the risk-return profiles of MPF funds and use MPF educational resources to plan the most suitable retirement positioning.