Wednesday, July 10, 2019

Why Hong Kong’s MPF pension scheme is failing to provide citizens with proper retirement protection

BLOG: One morning in May, cleaning worker Lau Chung dragged herself to the head office of Hong Kong’s Mandatory Provident Fund (MPF) Schemes Authority in Kwai Chung. Turning 65, the age that allows her to withdraw all her MPF cash, she wanted to find out how many pension accounts she had, and how much in savings, after working about 20 years as a cleaner. “I’ve never been clear about these things,” said Lau.

Earning about HK$8,800 (US$1,130) per month, Lau was laid off many times at the end of her contracts. The mechanism, which offset more than HK$36.5 billion (US$4.6 billion) as of the end of 2017 and wrote off 700 accounts in 2017 alone, will be abolished in 2022 with a government subsidy of about HK$30 billion to support employers. Like... Read More