Suen Wai-man: government should strengthen MPF on four fronts — the system itself is fine

Hang Seng Management College business school dean Suen Wai-man says the MPF system itself is sound — the problems lie in execution and support; the government should strengthen it on four fronts so workers truly benefit.

Which four fronts?

Fees, choice, education, protection. Suen proposes the government: (1) squeeze management fees to reasonable levels; (2) widen fund and investment choices for more diversified allocation; (3) boost investor education so members pick suitable funds; (4) strengthen protection for low earners so the system doesn’t miss those who need it most.

What’s his view on universal pensions?

MPF plus the safety net is enough. Suen believes MPF plus the existing social safety net already forms the basic retirement framework; rather than building a universal scheme from scratch, resources are better spent improving the current system.

To see the current system’s fund choices, visit MPF fund comparison.