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The Mandatory Provident Fund Schemes Authority (MPFA) welcomes today’s (5 July) official launch of the HKMC Annuity Plan by the HKMC Annuity Limited (HKMCA), which is wholly-owned by The Hong Kong Mortgage Corporation Limited.
 
Hong Kong has adopted the multi-pillar retirement protection model advocated by the World Bank. The Mandatory Provident Fund (MPF) System, as the second pillar in this model, plays an important role in helping millions of scheme members accumulate retirement savings over their 30- to 40-year working life.
 
The MPF System covers over 70% of Hong Kong’s working population. As at the end of May 2018, the MPF System had assets of more than $870 billion, with about $274 billion of which (more than one-third) being investment returns net of fees and charges. This clearly shows that the System has added value to scheme members’ contributions.
 
Under the MPF legislation, scheme members can withdraw their MPF benefits upon reaching the age of 65¹. They can choose to withdraw their benefits in a lump sum or by instalments. They can also retain their benefits in the MPF System for continuous investment.
 
With Hong Kong people having one of the highest life expectancies in the world, the MPFA welcomes the launch of the HKMC Annuity Plan by the HKMCA. The initiative offers retirees another financial arrangement option of turning part of their savings, including the MPF benefits they withdraw, into a life-long stream of guaranteed, stable and fixed annuity income.
 
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5 July 2018