The following assumptions are used in making the benefit projections:
The retirement age is 65;
The employer and the employee each contribute 5% of the employee’s relevant income (i.e. 10% of the employee’s relevant income in total). A self employed person contributes 5% of relevant income;
The amounts of mandatory contributions made are subject to the existing statutory minimum and maximum levels of income which are $7,100 and $30,000 per month respectively. Both levels are adjusted automatically every 4 years according to the rate of inflation as measured by the annualized Composite Consumer Price Index change over the past 10 years;
An annual bonus, if any, is included in the relevant income of the last month of each year;
The relevant income is assumed to increase at 4.0% per annum. This rate of increase is set as a default value, which can be changed by the user;
The expected annual MPF investment return, as input by the user, is a figure after fees have been charged (i.e. net of fees and charges);
Voluntary contributions (if any) are made as a percentage of the relevant income per month. There is no upper limit to the level of voluntary contributions, and all such contributions are fully vested;
Special voluntary contributions (if any) are made in a fixed dollar amount;
Mandatory contributions, voluntary contributions and special voluntary contributions are made on a monthly basis and will continue to be made until the age of 65;
Existing MPF balance, as input by the user, is assumed to be fully vested;
To arrive at the projected MPF accrued benefits at the age of 65 in today’s value, the projected MPF accrued benefits are being discounted at an annualized inflation rate of 3.2%. This figure is set as a default input in the calculator. It can be changed by the user as needed;
There is no long service payment / severance payment offsetting, no default contribution, no breaking of employment, and no early withdrawal during the period of projection.
This is a calculator for projecting MPF accrued benefits to facilitate user’s retirement planning and to demonstrate the impact of different variables on the accrued benefits.
The calculation is based on the standardized assumptions, and other hypothetical data and individual variable(s) input by the user.
The results generated by this calculator are for illustrative purposes only and not intended to be a substitute for professional investment advice. The results may differ from other similar calculators when different assumptions are adopted. The results do not represent, or promise, the actual amount of the MPF accrued benefits the user will receive at retirement. The actual amount of the MPF benefits will depend on, among other things, the amount and duration of contributions, the actual MPF investment returns, fees and charges paid and other personal and external factors. It could be different from the projected results.
The MPFA shall not be liable for any errors or omissions in or any reliance placed upon the projected results.