MPF fund performance: the 2011 Policy Address put post-fee returns at 5.1% a year

As of 2011, the MPF’s report card read like this: about 85% of the working population had retirement protection, and the average annual return after fees stood at 5.1%. The figures came from the Chief Executive’s final Policy Address — part defence of the system, part runway for the reforms to come.

What was the MPF fund performance record in 2011?

MPF fund performance means the investment return of MPF funds after fees. According to data cited in the 2011 Policy Address, about 85% of Hong Kong’s workforce then had retirement protection, and MPF recorded an average annual return of 5.1% after fees; the address nonetheless conceded the system was still at an early stage and needed continuous improvement, with the government studying how to optimise retirement protection.

What reforms were on the 2011 research agenda?

• The MPFA was studying supporting measures for future full MPF portability;
• Studying whether employees should be allowed phased MPF withdrawals at retirement;
• Studying early withdrawal in specific circumstances.

The 5.1% figure froze the MPF’s first decade in a single number. For the basics of MPF returns, see the MPF education hub.