Under the Employee Choice Arrangement, when should you review your MPF mix?

This article is a rewrite of a report from August 2012.

The Employee Choice Arrangement arrived in November — but whether or not it existed, members should have reviewed their MPF investments regularly. The questions: how often, and when to consider switching?

How often should you review?

At least once a year. Pick your own timing: around your birthday works, since risk tolerance generally tracks age (the investment horizon). More efficient still is when the trustee’s annual benefit statement lands — balances, returns, portfolio mix and fund performance all in one place, no hunting around.

What should you check before an MPF transfer?

Whether your provider keeps up. Have fund choices grown, service improved, fees adjusted? That decides whether to stay. If your risk tolerance has shifted but the current provider lacks fitting options, consider moving. One tip: the 0.03% compensation-fund levy paused from September 1, 2012 — watch whether your provider passes it through as a lower fund expense ratio. That is a telling test of corporate responsibility.

Which life stages trigger a review?

Marriage, children, promotion, nearing retirement — all of them. Risk tolerance shifts at every stage. But remember: reviewing does not mean changing — if the current set-up still fits after review, standing pat beats fidgeting.