The Mandatory Provident Fund Hong Kong Experience

The ageing population of Hong Kong is relatively high. In fact, in 2010, people who are aged 65 years old and above accounted for about 13 per cent of the overall population of Hong Kong. This figure is projected to further increase in the next couple of years. For this reason, the Mandatory Provident Fund (MPF) has been developed to help protect the lives of the elderly.

This fund can be considered as a retirement plan for people who are 65 years old and above. This funding can ensure that when a person reaches the age of 65, he or she can enjoy the benefits of retirement without having to worry about financial matters.

The mpf hong kong seem like a great way to save up for the future. This retirement plan can definitely help families survive especially in times when the elderly starts to suffer from the many complications of the ageing process.

Things you may want to know about the MPF

• The contributions for this plan basically start as soon as the individual begins to work. Any individual ages 18 years old up until the age of 64 is required to make contributions to the MPF unless the person is exempted.
• A 5 per cent contribution is required for both the employee and the employer every month. However, in the case that the employee does not reach the maximum relevant income level, he or she is not required to make mandatory contributions.
• In case the individual wants to increase his or her savings, he or she can make voluntary contributions. The same also applies to those who do not reach the maximum relevant income level. They can make voluntary contributions for their MPF.
• People who are self-employed should still make a 5 per cent mandatory contribution if he or she reaches the maximum relevant income level.
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