MPF at Ten: Anna Wu Says Fees Must Fall — Hong Kong vs Singapore Compared

As MPF turned ten in December 2010, MPFA chair Anna Wu said the status quo had to change — starting with fees, which she called too high. Hong Kong MPF fees average 1.1%–2.4% of assets, far above the 0.25%–1% typical of US 401(k) mutual funds.

How do Hong Kong and Singapore compare?

Does 45 years of max contributions fund retirement?

No — about nine years of living expenses. Financial planners ipac calculate that contributing the maximum from age 20 to 65 leaves enough for roughly nine years; with Hong Kong life expectancy at 81.86 (fifth in the world), the money structurally runs short.

Why cut fees?

Fees eat returns directly. Wu told reporters in December 2010 the current level should come down. Check what your funds charge at MPF fund comparison.