Three Tips for Picking the Right Plan Ahead of the Employee Choice Arrangement

The government has moved to raise MPF contribution floors and caps (HK$5,000→HK$6,500 and HK$20,000→HK$25,000) and tabled legislation to regulate MPF intermediaries, paving the way for the Employee Choice Arrangement. AXA Hong Kong’s head of retirement and intermediary sales Thomas Lee advises: more funds isn’t better — fit is what matters.

Tip 1: Does the plan have the funds you want?

Fit beats quantity. Many assume more funds means a better plan, but what counts is whether the funds match your risk appetite and goals. Some trustees run professional teams to pick quality managers at reasonable fees, keeping charges and returns at sensible levels.

Tip 2: Fees or returns first?

Returns first, fees as reference. Fund returns are driven mainly by investment risk and strategy — the expense ratio is only one factor, and most charges are already reflected in fund prices, i.e. returns are net of fees. Compare returns and risk first, then use fees as a reference.

Tip 3: When should you consult an adviser?

Before consolidating personal accounts and current contributions into one plan. After the arrangement launches, members can merge accounts; established trustees train and support professional advisers, and responsible advisers review your portfolio as life changes.

Do your own homework at MPF fund comparison.