Information Centre

More people are paying attention to their health and regularly scheduling medical check-ups tailored to their physical condition and age. MPF management should follow the same principle. Since the MPF is a long-term investment spanning over 40 years, investment strategies should not remain static. Scheme members should adopt a healthy mindset for long-term investment by adjusting and refining their investment portfolios in line with different life stages and risk-tolerance levels. 

Scheme members aged 18 to 30 tend to have fewer family responsibilities and a longer investment horizon, allowing them to better withstand short-term market volatility. As a result, they have a higher risk-tolerance level. Therefore, they can consider more aggressive MPF fund options, such as Equity Funds or Mixed Assets Funds with a higher allocation in equities, to pursue stronger long-term returns. We encourage younger employees to start building their retirement reserves as early as possible, as even small contributions can grow significantly over time through the compounding effect.

From ages 31 to 49, many employees see their careers take off, leading to rising income as they gain experience and receive promotions. Although family responsibilities and expenses, such as home ownership and family building, may also increase during this period, careful budgeting can allow for greater retirement investment, including voluntary MPF contributions. As employees approach retirement, they should gradually reduce their exposure to high-risk assets and increase their holdings in lower-risk options, like bonds, to manage investment risk.

Between the ages 50 and 64, risk-tolerance tends to decline further. Continued investment in volatile assets may leave insufficient time to recover from market downturns. Therefore, scheme members should consider shifting toward more conservative asset allocations to preserve their MPF assets.

Given Hong Kong’s rising life expectancy, retirement could span over 20 years. Inflation may erode purchasing power over time, so maintaining appropriate post-retirement investments is essential. Scheme members are encouraged to withdraw their MPF benefit in instalments or on a regular basis, allowing the remaining assets to continue to grow through investment until they need to withdraw them.