Info Center

MPFA Chairman Mrs Ayesha Macpherson Lau published her blog post today (9 December), highlighting that 1 December marks the 25th anniversary of the MPF System. Thanks to the concerted efforts of both employers and employees, MPF total assets have grown to $1.5 trillion, with a year-to-date net investment return of about 15%. 

Before the implementation of MPF, only about one-third of Hong Kong’s workforce had some form of retirement protection. With the implementation of MPF System, nearly 100% of the workforce is now covered by retirement protection. As at end-October this year, all fund types had recorded positive annualized investment returns since the inception of MPF System. Equity Funds and Mixed Assets Funds, together accounting for 80% of total MPF assets, have, on average, recorded cumulative net returns of 240% and 200%, or annualized net returns of 5% and 4.5%, respectively, both exceeding the annualized inflation rate of 1.8% for the same period. 

In addition to mandatory contributions, there was an increasing number of employees and employers making voluntary contributions. In the first three quarters of this year, voluntary contributions accounted for 25% of total MPF contributions, nearly double the proportion recorded during the same period a decade ago. This reflects growing public confidence in the MPF as a tool for enhancing retirement reserves.

She added that the default investment strategy (DIS, “funds for lazy people”), launched in 2017, is prudently designed with a diversified investment approach and fee caps.  Its value-for-money features help increase retirement reserves. Since its launch, the Core Accumulation Fund under DIS has recorded, on average, an annualized net return of 6.9%, exceeding the annualized inflation rate of 1.8% for the same period. This is a heartening achievement. With MPF schemes joining the eMPF Platform (eMPF), the DIS fee cap needs to be reduced further, contributing to higher net investment returns.

eMPF, which commenced operation in June last year, is the most significant reform since the implementation of MPF. It streamlines, automates and digitalizes the administration processes of MPF, enabling employees to manage their MPF with greater ease and efficiency. As more MPF schemes join eMPF, the impact of fee reductions has become increasingly evident. Once an MPF scheme joins the platform, its administration fee must not exceed the prevailing fee of 37 basis points (0.37%) charged by eMPF. Over 10 million scheme member accounts will benefit from these fee reductions, accounting for more than 90% of the total number of scheme member accounts. Mrs Lau expressed strong confidence that administration fees will further reduce in the future, benefiting all scheme members.

Mrs Lau stated that after a quarter of a century, MPFA's foundational mission remains unchanged and it will continue to uphold its commitment to building an 'MPF for a better future' for the working population. Looking ahead, MPFA will continue to pursue a range of initiatives, including implementing MPF Full Portability, promoting voluntary contributions, raising the minimum and maximum relevant income levels for MPF contributions, and enhancing DIS. 

For the full version of the article, please visit the MPFA blog. The blog is available in Chinese only.

– Ends – 

9 December 2025