MPF compassionate regime under fire: “trying to run before it can walk”

The MPFA is studying a compassionate regime letting contributors withdraw part of their MPF before retirement for critical illness or family upheaval. HKU social work chair professor Nelson Chow blasted the idea as “trying to run before it can walk”, hollowing out MPF’s retirement-protection purpose.

Why “run before walk”?

Chow notes Hongkongers’ MPF balances average just HK$100,000–200,000 — not enough for a flat or overseas study; with low contribution rates and a short history, balances may not even cover retirement living costs. MPF should not become a “cure-all fund” contradicting its retirement purpose; the MPFA’s consultation wastes citizens’ time.

What’s wrong with the system itself?

He argues MPF is already riddled with problems, such as hefty admin fees; a compassionate regime could trigger mass early withdrawals, destroying the system’s meaning. He urges the MPFA to cut admin fees and implement semi-portability quickly instead.

Does anyone support parts of it?

LegCo welfare panel chairman Cheung Kwok-chu backs letting critically ill employees withdraw part of their benefits for medical use — but withdrawals for flat purchases need much more discussion. HSBC’s Asia-Pacific business strategy and investment adviser Mr Leung also warns: with balances small, early withdrawals undermine comprehensive retirement protection and add to future government welfare spending.

For current early-withdrawal rules, visit the MPF education hub.