Voluntary MPF contributions build your retirement reserve

Siu-wai worries his retirement savings won’t be enough. Beyond the mandatory 5% each month, what else can he do? Consider MPF voluntary contributions — extra payments on top of mandatory ones, with all accrued benefits belonging to you.

What are voluntary contributions?

They are additional contributions by members or employers beyond the mandatory 5%. Like mandatory contributions, they’re invested in the plan’s funds, compounding over the long run.

What are the benefits?

First, pooled investing brings cost efficiency. Second, regular fixed contributions harness dollar-cost averaging. Third, contributions are tax-deductible (under prevailing tax rules). For workers with spare cash, it’s a simple, effective savings habit.

What should you watch?

Once made, voluntary contributions face MPF withdrawal restrictions — generally locked until age 65. If you need flexibility, consider other instruments; assess your finances first.

How to start?

Ask your current plan’s trustee, or join another plan for special voluntary contributions. Minimum amounts and terms vary — compare first.

Learn more at the MPF education hub.