Retirees can grow the pie with their MPF

Neighbour Hung is about to retire and plans to travel the world with his wife. His children give him monthly living expenses, so retirement looks comfortable — and he still has an MPF pot he doesn’t urgently need. At 65, must he withdraw everything at once?

What are the options at 65?

Two: withdraw everything in a lump sum, or leave the money invested in the account. If there’s no urgent need for the cash and no better investment avenue, consider keeping the full amount in a preserved account under the current or another MPF scheme, letting it keep growing until it’s needed or fund prices look right.

What should you watch with a lump-sum withdrawal?

Think carefully about how to deploy a large sum. Term deposits or conservative investments are options, or other uses matching your circumstances. With limited income in retirement, a big pot of money deserves careful planning.

Can you just leave it and forget it?

No. The MPF is a key retirement reserve — manage it and review the portfolio regularly. Even money left to compound in the account shouldn’t be ignored.

What if you never apply to withdraw?

The trustee will write to you within 12 months. If a member reaches 65 without claiming, the trustee must issue a written notice of the right to claim and let the member choose whether to keep the benefits in the scheme.

For MPF withdrawal rules, visit the MPF education centre, or compare preserved-account fund choices at MPF fund comparison.