Hong Kong residents are boosting their retirement savings by increasing contributions to the Mandatory Provident Fund (MPF), despite its recent underperformance. Tax-deductible voluntary contributions (TVCs) have grown, with a 10% year-on-year rise to about 70,000 accounts as of September. Ayesha Macpherson Lau, the Mandatory Provident Fund Schemes Authority chair, emphasises the tax benefits of TVCs, which have accumulated to HKD9.2bn (since 2019. She advises early contributions for maximised retirement funds. Employer voluntary contributions dominated the HKD15.3bn (USD1.96bn) total from January to September. The government plans to enhance tax deductions for employer contributions for older workers. Despite a downturn, the MPF has averaged a 3.5% annual return since its inception, although it experienced significant losses in 2022.
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