Editorial | Strong gains in MPF provide a measure of relief for Hong Kong pensioners
But there is still a long way to go as three-quarters of Hongkongers expect they will have to work beyond retirement age
Good news has been a long time coming for Hong Kong’s compulsory retirement savers.
After a meagre investment gain of 3.5 per cent in 2023, which hardly offset a loss of 15.7 per cent in 2022, the Mandatory Provident Fund scheme is on course to report its best performance in four years in 2024, thanks partly to strong gains by stock funds.
Moreover, most analysts believe the MPF will maintain a positive trajectory next year.
Mid-December, the MPF’s 379 investment funds had an estimated gain of HK$102.8 billion for this year, the third time the fund’s gain had exceeded HK$100 billion, according to MPF Ratings, an independent research firm.
Despite the bumper result, the question remains whether retirement and social welfare protection are adequate. The answer remains “no”.
Mid-year the MPF had an average of HK$258,000 for each of its 4.7 members, based on assets of HK$1.23 trillion, according to MPF Ratings.
That is hardly enough for a decent living standard in Hong Kong, even counting welfare for those who meet a means test.
