Cash Handout or MPF Injection — Which Cost More?

How did the government cost it in April 2011?

A HK$6,000 cash handout for everyone would cost HK$36 billion — HK$12 billion more than the original HK$24 billion plan to inject the money into MPF accounts.

What’s the takeaway?

Cash cost HK$12 billion more than MPF injection; citizens overwhelmingly wanted cash, but retirement saving is on each of us — voluntary MPF contributions carry tax and compounding benefits.

What can workers do?

A handout is one-off; retirement needs long-term saving; top up voluntary contributions and choose well at MPF fund comparison.