What Went Wrong in MPF’s First Decade?

How did the 2011 ten-year review judge the system?

At MPF’s 2011 tenth anniversary, a PolyU poll found 60% of account holders felt it failed to protect their retirement, citing three sins: fees too high, coverage not universal, contribution rates too low. At a 1.91% average fee and 5% return, nearly HK$1 million of a HK$3 million 40-year pot would go to fund managers.

Why was MPF called non-universal?

It covered only workers earning over HK$5,000 a month, leaving housewives and older jobseekers out; activists proposed a tripartite scheme with HK$1,000 each from employee, employer and government.

What can you do about high MPF fees?

Compare fund fees at MPF fund comparison and pick low-cost schemes.