Smart MPF eyes (employee edition): how much do you need for retirement, and how to pick a trustee?

Starting work makes MPF contributions a monthly ritual. But MPF isn’t just a legal duty — it’s a key retirement reserve, and employees should take charge of it.

How much retirement reserve do you need?

Work it out from a few big assumptions. Employees can assess retirement needs from: expected retirement age, post-retirement spending, existing savings and investments, expected returns, inflation, and MPF contributions plus accrued benefits. Note MPF returns aren’t guaranteed, and annual expense ratios (fund expense ratios) vary — they directly affect long-term compounding.

What to look for in a trustee?

Financial strength, fund choice, long-term performance. Picking trustees and funds means looking at multiple angles: the trustee’s financial soundness, how many fund choices it offers, and long-term fund performance. The MPFA’s fee comparison platform and fund performance data are handy for comparing.

By Lee Ping-hei, AXA Hong Kong Chief Retirement and Intermediary Sales Development Officer

To compare trustees and funds from multiple angles, visit MPF fund comparison.