Retirement Protection

Universal Retirement Protection

77.     It is not easy for the community to reach a consensus on a universal retirement protection scheme.  We have just implemented the minimum wage, and are studying the voluntary Health Protection Scheme and ways to enhance the Mandatory Provident Fund (MPF) schemes.  Currently, low-income workers enjoy a certain degree of retirement and basic livelihood protection.  It is impractical to introduce fundamental changes to the existing system and adopt a resource reallocation approach to deal with retirement protection because the middle class and professionals would generally not accept it now.  It is more constructive to enhance the existing retirement protection system.  The Government is studying this in depth.

MPF Review

78.     Since the implementation of the MPF system, almost 85% of Hong Kong's workforce has been covered by some form of retirement protection.  The MPF system has an average annual rate of return of 5.1% after fees and charges.  As it is still at an initial stage, the MPF system requires continuous improvement.

79.     The Government and the Mandatory Provident Fund Schemes Authority (MPFA) will strive to promote market competition. We will strengthen employees' right of choice to reduce the fees and charges of MPF schemes. The MPFA is studying supporting measures to facilitate the implementation of a full portability arrangement in the future. It will also look into whether the withdrawal of MPF accrued benefits in phases after retirement and early withdrawal under specific circumstances by employees should be allowed.

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