MPF may allow emergency withdrawals — and annuities after 65

A decade into MPF, the MPFA will review withdrawal methods — studying emergency withdrawals before 65 and annuity-style monthly payouts after — with preliminary proposals to the government this year. Financial Services Secretary Ceajer Chan says the government is open-minded on withdrawal options.

How do withdrawals work now?

Take it all at 65 in one go — or wait for better markets. Currently members reaching 65 may withdraw everything at once, whether still working or not; if markets are volatile, they can delay until conditions improve. After withdrawing, they can choose market investment or retirement-income products, including annuities.

What new options are under review?

No more all-or-nothing: scheduled or instalment withdrawals, annuities, or hybrids. The MPFA task force will draw on ten years of operating experience, collected views and overseas practices. Unionist Lee Cheuk-yan proposes letting retirees withdraw in stages according to markets and means; FTU’s Wong Kwok-hing wants early access for critical illness or family emergencies.

What’s the government’s stance?

Open-minded, but early withdrawal needs care. Chan warns MPF is for retirement — early emergency access could harm members’ retirement plans and needs careful study. He adds the government is rushing semi-portability legislation, aiming to table it this year for implementation next legislative session.

For the latest on MPF withdrawal arrangements, visit the MPF education centre.