Nearing retirement as MPF shrinks: lawmaker urges flexible withdrawals

Global market swings have left many near-retirees watching their MPF balances shrink. Insurance-sector lawmaker Chan Kin-por proposes letting members withdraw accrued benefits flexibly from age 60, instead of waiting until 65 — reopening the MPF early withdrawal debate.

What are the current rules?

At what age can you withdraw MPF? Under current law, generally 65 — early withdrawal is allowed only in limited cases like permanent departure from Hong Kong or total incapacity.

What’s the proposal?

Chan suggests setting the early-withdrawal threshold at 60, so those nearing retirement can draw down in stages as needed. Many people retire or semi-retire around 60, he argues — making them wait until 65 makes little sense.

What’s the controversy?

Supporters call flexible withdrawal more humane; critics fear early withdrawals will eat into retirement savings and raise longevity risk. The MPFA says it will study the idea, balancing members’ needs with the system’s purpose.

What can members do now?

Near-retirees should review their portfolios and shift gradually toward conservative funds, cushioning balances against market swings. Rather than withdrawing into a falling market, adjust risk levels and wait for calmer conditions.

Learn about withdrawal rules at the MPF education hub.