Did Australia’s Pensions Beat Hong Kong’s MPF?

How strong was Australia in 2010?

Australia’s pension funds returned 10.5% in 2010, beating Hong Kong MPF’s 7.15%; in currency terms, national pension reserves grew 12.5% year-on-year. Australia’s compulsory system began in July 1992 with employers contributing 9% of salary; Hong Kong’s started only in 2000 with 5% each from employers and employees.

Why did Australia do better?

Compulsion started earlier, and Australians treat employer pension contributions as part of their own pay — monitoring accounts and engaging with investments. Australian government data showed a third of retirees had under A$100 in retirement savings — yet overall returns still beat Hong Kong.

What should Hong Kong learn?

Longer compulsion, higher contributions, engaged members — three things Hong Kong MPF must catch up on. Rather than envying, tend your own account first: choose better funds at MPF fund comparison.