HK retirees spend HK$15,090/month; 76% withdraw MPF in lump sum

The Hong Kong Institute of Financial Planners (IFPHK), together with Yanford Trustee, released the latest “IFPHK x Yanford MPF: Hong Kong–Macau Retirement Expenditure Index”, shedding light on the real consumption patterns of local retirees. The survey shows that, fuelled by the post-pandemic cross-border spending boom, retirees’ “retirement inflation” has far outpaced general price rises, while the vast majority still prefer to withdraw their MPF in one go — raising concerns over longevity risk.

Index rises to 131.6; average monthly spend HK$15,090

• The index climbed from a 2020 base of 100 to 127.0 in 2023 and is projected to reach 131.6 in 2026 — translating into an average retiree monthly expenditure of HK$15,090.
• From November 2020 to May 2026, the index rose more than 5% a year, well above the roughly 1.8% annual increase in the Composite Consumer Price Index (CPI) over the same period — meaning retirement-cost inflation runs at nearly three times the headline rate.
• About 80% of respondents had spent in Guangdong–Hong Kong–Macau Greater Bay Area cities, averaging around RMB1,100 per trip, a key driver of higher costs; Macau retirees averaged MOP10,408 a month.

76% take MPF as a lump sum; longevity risk emerges

• This year, as many as 76% of eligible retirees habitually withdraw their entire MPF in a single lump sum — experts link this to recent market gains prompting early encashment.
• Over 72% regret their retirement planning, most commonly “not saving or investing early enough”, while 77% have yet to do any estate planning.
• Half worry about unexpected medical expenses and more than 40% fear inflation eroding purchasing power.

Experts: treat MPF as steady retirement income

Yanford Trustee’s CEO highlighted that retirees must move away from viewing retirement savings as a one-off pot. They should leverage MPF’s flexibility through phased withdrawals and a mixed-asset strategy, combined with lifetime annuity-style income and comprehensive medical cover, converting wealth into a stable, predictable “lifetime paycheck”. The IFPHK’s CEO also advised embedding medical protection into retirement planning and treating MPF as part of steady retirement income.

With retirement inflation persistently above general inflation, prospective retirees should plan early and make full use of MPF and Tax-Deductible Voluntary Contributions (TVC) to build an inflation-resilient, sustainable retirement safety net.