AXA: MPF fees can fall further; compassionate withdrawals need clear definitions

AXA’s chief retirement and intermediary sales director Lee Ping-hei told a radio interview he expects MPF semi-portability only by mid-next year, since the MPFA must step up intermediary regulation, education and training — about 30,000 intermediaries need a two-hour semi-portability course.

Will semi-portability trigger a price war?

Fees have room to fall; how far depends. Lee said he hopes for a flourishing market with prices set by the market, but believes management fees can still come down, depending on circumstances.

What would make a compassionate scheme workable?

20–30% for critical illness is reasonable — but definitions must stay narrow. The government is studying a compassionate MPF scheme for special-case withdrawals. Lee called the intent good: letting members tap 20–30% for critical illness is reasonable. But the definition of emergencies must not stretch too wide — home purchases and children’s education belong in non-MPF financial planning. The government needs precise definitions and clear guidelines on what counts as critical illness, or disputes will pile up and burden the industry.

How much would it actually help?

Average balances under HK$150,000 cover living costs, not big medical bills. Lee noted the average MPF account holds under HK$150,000, so compassionate withdrawals might only sustain living expenses during treatment, not huge medical costs.

To compare management fees across schemes, visit MPF fund comparison.