This article is a rewrite of a report from July 2012.
The MPF system exists to give members retirement protection and ease the fiscal burden of an ageing population. Once you hit 50, with 10 to 15 working years left, it is time to raise the weight of conservative instruments such as the MPF Conservative Fund in your portfolio.
Why go more conservative as retirement nears?
Because a shorter working life means lower risk tolerance — a higher conservative weighting cushions market swings and helps lock in returns. MPF is a long-term investment, but as the withdrawal date approaches, the portfolio should get steadily steadier.
What is the MPF withdrawal age?
The statutory withdrawal age is 65; members may take everything at 65 or leave their accrued benefits in the scheme to keep growing. How to adjust depends on when you plan to use the money:
| Withdrawal plan | Suggested conservative weighting |
|---|---|
| Withdraw at 70 | Raise to 60–70% between 55 and 60, then to 80–90% after 65 |
| Need benefits for living expenses | Raise to 60–70% between 50 and 55, then to 80–90% after 60 |
What else should pre-retirees assess?
A full picture of personal finances: existing savings and investments, expected retirement age, monthly post-retirement spending (living costs, medical bills, emergency reserves), plus inflation, life expectancy, and whether you rent or own. The earlier you prepare, the more flexibility you have — and the less the market dictates your moves.
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