It is possible to increase your post-retirement savings by Voluntary Contributions. Voluntary Contributions are the amount of money that you contribute in excess of what is required by a regular MPF. In this way, members can take advantage of the principal of Dollar Cost Averaging and the Compounding Effect to provide a higher income for the life of retirement.

Types of Voluntary Contributions

There are three ways of making additional contributions:

1. Voluntary Contributions (VC)

In the case of VC, the employer chooses a scheme and opens an account for the employee. Contributions are calculated on the basis of the income of the employee, who will then make a fixed amount contribution to the trustee through the employer at a regular interval. In some cases, the employee may make a matching contribution into the employee’s account. Depending on the regulations of the scheme, you may withdraw or transfer your benefits before retirement, but only at the termination of the employment.

2. Special Voluntary Contributions (SVC)

In Special Voluntary Contributions, members can open an account with the trustee of their choice. They can also choose a scheme other than the MPF scheme that they set up through the employers. The frequency and amount of the contributions are more flexible, to be arranged by the direct negotiations between the members and the trustee. Members can also withdraw/transfer their benefits at any time. No redemption fees will be charged against the withdrawals or transfers.

3. Tax-Deductible Voluntary Contributions (TVC)

Introduced in 2019, TVC allows members to claim tax deductions for voluntary contributions up to HK$60,000 per year (the same cap as for annuity premiums and qualified pension insurance premiums under the corresponding provisions of the Inland Revenue Ordinance).

2026 Update: Voluntary Contributions on the Rise

Voluntary Contributions continue to grow in popularity as more Hong Kong workers recognize the importance of retirement planning:

• More members are making additional contributions above the mandatory 5%
• TVC uptake has increased significantly since its introduction
• The flexibility of SVC makes it attractive for self-employed persons and high earners

Benefits of Making Voluntary Contributions

1. Tax advantages: TVC contributions are tax-deductible up to HK$60,000 per year
2. Accelerated savings: Boost your retirement nest egg faster
3. Compounding effect: The earlier you contribute, the more time your money has to grow
4. Flexibility: SVC allows contributions and withdrawals at any time

Example: Impact of Additional Contributions

Consider the impact of contributing an extra HK$1,000 per month:

Illustration only: assumes $1,000 contributed at each month-end, 5% p.a. compounded monthly, before fund fees and charges. Actual returns will differ.

Note: Projections are for illustrative purposes only. Past performance is not indicative of future results.

eMPF Platform and Voluntary Contributions

The eMPF platform makes managing voluntary contributions easier:

• Set up recurring voluntary contributions online
• Track the growth of your additional savings
• Manage SVC accounts with any trustee

Key Takeaways

• Start early: Even small additional contributions grow significantly over time
• Consider TVC: If you need tax deductions, TVC is an excellent option
• Stay consistent: Regular additional contributions maximize the compounding effect
• 2026 average MPF balance exceeded HK$350,000 – voluntary contributions can help you exceed this benchmark

It pays to make contributions to a MPF scheme early in one’s working life. The amount of the contribution may only be a few hundred dollars a month, but with the passage of time, members will enjoy the benefits that come from the Dollar Cost Averaging and the Compounding effect.

[Source: MPFA website, MPF Ratings]