Chow Wing-sun Slams Hardship Scheme as “Ill-Timed”: Scrap the Consultation, Fix the System First
2011-07-24
The MPFA is studying a hardship mechanism for early MPF withdrawals. HKU social work chair professor Chow Wing-sun told a radio programme it would deepen public negativity toward the MPF, urging the authority to scrap the consultation as “trying to run before walking”.
Chow’s three criticisms
| Argument | Detail |
|---|---|
| The sums don’t work | Average balances are just HK$100,000–200,000 — too little for a home deposit or overseas study |
| Wrong priorities | The MPF already has deep problems, especially high admin fees; allowing early access means everyone grabs first, destroying retirement protection’s purpose |
| Wrong timing | “Running before walking” — the consultation wastes time; fix the system first |
Leung Siu-kay: unfair to other members
Fellow guest Leung Siu-kay, HSBC Asia-Pacific strategy and economics adviser, said members who divert money mid-way and run short at retirement will draw on public welfare — unfair to members relying on MPF for old age.
The core tension
Hardship access eases today’s pain, but MPF exists for retirement. Pain now versus pain decades later — does spending retirement money on today’s hardship help, or just defer the explosion? Chow’s answer is clear: fix the system first, consider hardship in the long run.
Retirement protection can’t run on “spending tomorrow’s money today”. Compare MPF funds’ fees and returns at MPF fund comparison.
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