Does a 2% Admin Fee Eat 40% Over Forty Years?

What did the union calculate in November 2010?

On MPF’s tenth anniversary, HKCTU’s Meng Zhaoda calculated: at 2% annual admin fees, 40 years of contributions lose nearly 40% — HK$1,000 monthly at 5% returns would reach HK$3.05 million, but only HK$1.85 million after a 2% fee drag, a 39% loss. On HK$340 billion of MPF assets, admin fees pulled about HK$6.5 billion a year; with no legal fee cap, members’ assets kept shrinking.

What did the union demand?

A full government review: fee transparency and caps; scrapping employer offsetting of severance/long-service payments (HK$13.7 billion offset since July 2001); raising the employee exemption floor to HK$7,200 and ceiling to HK$30,000; extending cover to domestic helpers and casual workers; fast-tracking semi-portability; studying universal retirement protection.

What can workers do now?

Don’t wait for the review — pick low-fee funds today at MPF fund comparison.