Should MPF members link retirement investments to personal investments? Fund houses weigh in

Retirement support should be viewed holistically. MPF members could factor in other income sources to manage retirement savings dynamically. Here’s what market players say — including why MPF voluntary contributions matter.

Fidelity: don’t chase markets, but review holistically

Fidelity’s Head of Institutional Business KP Luk says MPF is a long-term investment for retirement life, different in nature and timing from personal investment — members should not adjust portfolios on market movements, but on age, risk tolerance, real income and retirement-lifestyle goals. That said, he advises viewing the personal and family financial plan as a whole, under which MPF and personal investments can be reviewed together.

RCM: regular contributions ride out volatility

RCM’s Head of Business for Hong Kong and China Elvin Yu calls retirement investing an ongoing process needing continuous planning and evaluation, part of one’s financial planning; regular contributions help members through periods of heightened volatility, delivering dollar-cost averaging through disciplined saving. Life events — marriage, children, job changes — or shifts in non-retirement investments all warrant rebalancing.

Principal and BEA: MPF may be your longest investment

Principal CEO Stanley Yip says retirement investment should be long-term; BEA chief executive Patrick Li adds that an individual’s MPF scheme is likely their longest-term investment, so time, objectives, expectations and risk all matter. AXA, AIA-JF and ING likewise urge reviewing retirement plans from an overall-portfolio perspective, with a financial consultant’s help where needed.

Invesco: MPF voluntary contributions boost the retirement war chest

Invesco’s COO for Asia ex Japan Desmond Ng notes deposits barely beat inflation, property has a high entry barrier and stock-picking is time-consuming — the MPF platform is the practical retirement vehicle; MPF voluntary contributions compound, so even small extra amounts add up meaningfully. Invesco’s new Flexible Voluntary Contributions allow lump-sum or monthly payments, separate investment allocation from mandatory contributions, and withdrawal anytime without waiting to 65.

Schroders: mind cash flow, avoid forced selling

Schroders’ Head of Institutional Business Kelvin Lee warns MPF is not a liquid, short-term investment — when reviewing the overall portfolio, ensure you are never forced to liquidate to meet cash-flow needs. Sun Life Financial concedes linking MPF to personal investment is difficult under current legislation, and the industry could work further on a solution.

To compare schemes offering voluntary contributions, visit MPF fund comparison; for voluntary-contribution rules, see the MPF education hub.