MPF May Loosen Early Withdrawals: Critical Illness, Home Deposits, Children’s Overseas Study

A decade into the MPF, sources say the MPFA’s review report due in the second half will study loosening early withdrawals: critical illness, home down payments, children’s overseas education and the like could unlock contributions before 65. But the stance is “tight rather than loose” — no flimsy excuses, no taking everything at once.

Current rules vs what’s studied

Two views

Chow Wing-sun (ex-MPF advisory chair): the idea is years old, modelled on Singapore; but average balances are only ~HK$200,000 — hardly worth taking. Better to wait until balances reach HK$400,000–500,000.

Kwong Cheuk-chiu (economist): backs more flexibility with rigour — e.g. allow over-40s (that age brings illness and school-age children); the very young have no case.

Loosening is compassion; strictness is principle. Where the line falls is the second-half report’s headline act. Compare MPF funds’ fees and returns at MPF fund comparison.