Dad is 65 and wants the most aggressive fund — bonds plus interest fund is the right answer

Dad turned 65 this year. The law says he can withdraw his MPF immediately, but he won’t — he’d rather leave the money in the account to keep growing it, joking: “Pick the most aggressive fund, of course! Earn more! High risk, so what — what’s there to fear?” Fair enough, but at his age, betting on high-risk funds is unwise, especially after the market has already run up for a while.

Can you withdraw MPF at 65?

Yes — the MPF withdrawal age is 65: once you turn 65 you may withdraw all your accrued benefits, lump sum or in instalments. Dad’s choice to stay invested is perfectly legal; the only question is whether retirement money can survive a big drawdown.

Why shouldn’t retirees pick the most aggressive funds?

Because once retirees lose money, they have no ongoing contributions to average down costs, and may not endure years waiting for fund prices to recover. Comparing three-year price volatility made it clear: parking the money in steadier bond funds is the sensible choice at this age.

How was Dad’s money allocated?

The final mix: 35% in a lower-risk, steadily growing MPF bond fund and 65% in a capital-guaranteed interest fund, to be reviewed as markets evolve. Not an all-in bet, but a balance between capital preservation and growth — retirement investing is about steadiness, not shooting the lights out.

To compare steadier options for parents or yourself, visit MPF fund comparison for bond and conservative fund fees and performance, or the MPF education hub for withdrawal-at-65 rules.