MPF System

Voluntary Contributions / Tax Deductible Voluntary Contributions (TVC)

As different people have different retirement needs and expectations, the amount of savings they need for retirement may vary. When assessing your retirement needs, these are the key elements to consider:

number of years before retirement
monthly expenses during retirement
number of years of retirement (i.e. life expectancy)

average inflation rate
expected rate of return of your savings/investments during retirement

Retirement Planning Calculator

Scheme members can input relevant data in the Retirement Planning Calculator to estimate the MPF and other savings they will have at the age of 65, and assess if the amount is sufficient to meet their retirement needs.

How can employees make additional contributions?

Employees can make:

voluntary contributions (VC) under the contribution account of the current employer’s scheme;
tax deductible voluntary contributions (TVC) under an MPF scheme that offers TVC; or
special voluntary contributions (SVC) under an MPF scheme that offers SVC.

Comparison between VC, TVC and SVC:

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Voluntary Contribution (VC)	Tax Deductible Voluntary Contribution (TVC)	Special Voluntary Contribution (SVC)
Employers can help employees open an account under the MPF scheme chosen by the employers	Employees can select an MPF scheme and open an account directly *Note: Not all MPF schemes offer TVC accounts. Employees may refer to the section about TVC on this website or MPFA’s Trustee Service Comparative Platform to check which MPF schemes offer TVC accounts.	Employees can select an MPF scheme and open an account directly *Note: Not all MPF schemes offer SVC accounts. Employees may refer to MPFA’s Trustee Service Comparative Platform to check which MPF schemes offer SVC accounts.

Voluntary Contribution (VC)	Tax Deductible Voluntary Contribution (TVC)	Special Voluntary Contribution (SVC)
Income-based contributions Fixed frequency or fixed amount of contributions Contributions are made to the MPF schemes via employers	Non-income-based contributions No fixed frequency or fixed amount of contributions Contributions are made directly to the MPF schemes	Non-income-based contributions No fixed frequency or fixed amount of contributions Contributions are made directly to the MPF schemes

Voluntary Contribution (VC)	Tax Deductible Voluntary Contribution (TVC)	Special Voluntary Contribution (SVC)
Nil	Contributions are eligible for tax deduction, which are capped at $60,000 per year (aggregate limit for both TVC and qualifying deferred annuity policies premiums) Tax deduction is effective from the assessment year 2019-20	Nil

Voluntary Contribution (VC)	Tax Deductible Voluntary Contribution (TVC)	Special Voluntary Contribution (SVC)
Subject to the governing rules of the MPF schemes, employees may withdraw or transfer their MPF upon cessation of employment	Withdrawal is allowed upon reaching the age of 65 (except for specified statutory grounds for early withdrawal) Contributions exceeding the tax deduction limit are not allowed to be withdrawn early Balance in a TVC account can be transferred to another TVC account under a different scheme at any time	Can be withdrawn or transferred at any time. Can withdraw benefits multiple times a year, but trustees may set a minimum withdrawal amount and a maximum frequency of withdrawals *Note: Withdrawal arrangements may vary among trustees.