Fund industry urges 2.5% extra voluntary contributions each side; academic says cut fees first

At an MPF forum, Hong Kong Investment Funds Association CEO Sally Wong said MPF contributions alone can’t fully support employees in retirement, urging the government to study tax incentives or a mechanism encouraging employers and employees to each add 2.5% in voluntary contributions.

What does labour say?

Grassroots workers have no room to pay more — study universal pensions instead. FTU legislator and MPFA non-executive director Wong Kwok-kin said most low-income workers barely cover living costs after MPF contributions, with no room for more; the government should study universal retirement protection and push the market to cut MPF management fees.

What do academics say?

Without fee cuts, extra contributions just enrich managers. PolyU assistant professor Chung Kim-wah said it’s hard to persuade people to contribute more without lower fees — the extra money would only boost managers’ commissions, not help employees. Ten years on, MPF assets have grown hugely, leaving ample room to cut fees.

To compare management fees across funds, visit MPF fund comparison.