Juggling several MPF accounts? Consolidating saves on fees

A Sunday trip to the HKUST library with Kwan-kwan sparked a thought: time to sort out my MPF. Past part-time jobs left me with several MPF accounts — as an employee then, I couldn’t merge them into one for easier management. Half a year on, it’s time to plan.

How are MPF fees actually calculated?

MPF fees aren’t abstract: the MPFA website offers comparison tools — e.g. modelling HK$1,000 in contributions at 5% annual return, then showing one-, three- and five-year fee costs in clear figures. Headline percentages are hard to compare; few realise these official tools exist.

What’s the benefit of consolidating accounts?

Merging old accounts under one roof simplifies management and saves fees. Principal’s fees, for instance, are not high — especially equity funds: a Hong Kong equity fund costs HK$89 per HK$1,000 over five years, under 1%; though indirect fees (deducted in units) do push costs up versus direct fees (deducted in cash). The Fidelity scheme from my HKUST days costs more by comparison.

Is consolidation a hassle?

It involves form-filling — genuinely tedious — but the long-term fee savings justify the effort. Workers with multiple accounts can first grasp fee impacts via MPF educational resources, then look into consolidating into a preferred MPF scheme.