Information Centre

The Tokyo Olympics have been the most exciting news in town lately, thanks to the best ever achievements by the Hong Kong team. While enjoying the breath-taking matches, we have also been inspired by the athletes, who have gone through long, hard training, coupled with perseverance and an unyielding spirit to stand on the big stage of the Olympics. In order to succeed, athletes must establish clear goals, maintain strict discipline, and advance with perseverance. Managing an MPF is no different. Scheme members can apply the same principles to manage their MPF to strengthen their retirement savings.

Good discipline

Elite athletes set clear goals, formulate a strict training schedule, and maintain good discipline to achieve their goals. Likewise, to achieve their retirement goals, scheme members must set clear investment goals, actively manage their MPF, review their investment strategies regularly according to their needs and risk tolerance level at different life stages, and make timely adjustments. Scheme members can also make good use of the electronic tools provided by the MPFA and trustees to make MPF management easier and more convenient.

Perseverance

As the old saying goes "one minute on stage takes ten years of hard work". Continuous training and practice help athletes perform at their best. By the same token, by making monthly contributions and accumulating MPF benefits over time thanks to the power of dollar cost averaging and the compounding effect, scheme members can increase their retirement savings. According to MPFA figures, as at the end of December 2020, close to 100,000 MPF accounts had accumulated more than $1 million, while another 20,000 accounts had more than $2 million. This shows that a longer investment period and higher contribution amounts result in an astonishing increase in retirement savings.

Investing extra effort to enhance effectiveness

To enhance their performance, athletes have to make an extra effort, such as joining overseas training and competitions to improve their skills and physical strength. Similarly, if scheme members want to further increase their MPF benefits, they can make voluntary contributions on top of mandatory contributions. The MPFA encourages scheme members to make tax deductible voluntary contributions to enjoy tax benefits while increasing their retirement savings.

Scheme members are their own MPF coach. They should establish clear goals, and adjust their investment strategies in accordance with their personal needs and circumstances. They should also actively manage their MPF with perseverance. With a comprehensive retirement plan, all scheme members can enjoy their retirement life and succeed in their own life journey.