Why Did 72% of MPF Members Not Know About “Member Choice”?

What Did the Survey Find?

An HSBC Insurance survey found that with “member choice” expected next year, 72% of MPF members did not know what it was — an improvement from 45% in July 2009. Meanwhile 44% believed their MPF savings would last less than five years in retirement, up from 27% in 2008.

Was the Contribution Cap Enough?

44% of respondents said the HK$20,000 MPF salary cap was not enough for retirement; 66% suggested raising it to around HK$33,000 on average, and 18% wanted more than HK$40,000. Alex Chu, HSBC Insurance’s head of employee benefits for Asia-Pacific, said economic conditions and SME employers’ affordability had to be weighed before any rise.

What Would “Member Choice” Change?

Chu said the MPF service model could shift from enterprise-oriented to retail-oriented, though a price war among providers remained uncertain. HSBC planned promotions to educate the public while reviewing pricing and products.
Once member choice arrives, workers can pick their own trustees — compare MPF funds on fees and performance and do the homework early.