Towers Watson: Workers Ignore Their MPF — Engagement Is Low

(Editor’s note: this report was originally in English and is rewritten in Chinese per this site’s practice.)

A Towers Watson survey published in May 2011 found Hong Kong workers’ engagement with MPF is low — many don’t know which funds they’ve picked, or even how many accounts they hold.

How low is engagement?

Most never actively manage their MPF. The survey found many members have never switched funds, leaving defaults untouched for years; plenty don’t know their funds’ fees or performance, and have little concept of retirement planning.

Why so passive?

It feels complex, time is short, and choosing is hard. Workers find the fund menu bewildering, lack time to research amid busy jobs, and some feel retirement is too far off to bother.

How can engagement improve?

Simplify choices, strengthen education. Towers Watson recommends simpler fund menus and disclosures plus stronger investor education so members can understand and participate. Member choice should lift engagement once workers can pick their own schemes.