MPF at Ten: Right and Wrong?

How did Ming Pao judge it in December 2010?

A Ming Pao review noted MPF launched 1 December 2000 — ten years on, it was a decent retirement scheme, imperfect but the flaws didn’t outweigh the merits. Hongkongers aged 65-plus were 13% of the population in 2009, heading for 28% by 2039; without a retirement system, elder care would crush government finances.

Is MPF enough to retire on?

At current rates (5% each side, HK$1,000 cap), contributions from 18 to 65 cover about 40% of retirement needs — the other 60% must come from personal wealth and government aid.

Why so expensive?

Ten years built HK$345 billion in net assets — at 3% a year that’s a HK$10 billion annual business; early small scale kept fees high. Real competition will bring fees down — members comparing at MPF fund comparison are part of that pressure.