25 June 2025
Few things make Mr MPF happier than seeing people comfortably retire, so imagine my dismay when I discovered that up to 7 out of 10 Hong Kong workers may not achieve their retirement reserve goal*. Those unable to reach their goal may have to delay retirement by around 12 years, with the shortfall potentially reaching as much as $2.7 million.
Those shocking figures motivate Mr MPF to continue his ongoing search for savings and investment hacks which could help Hong Kong workers address their retirement shortfall.
Previous blogs covered DIS and MPF account consolidation, which are great ways to simplify and keep tabs on your MPF, and these days MPF providers are bending backwards to make things easier for members. Take for example AIA, who until the end of June are offering MPF members a bonus up to HK$18,888 for newly transferred-in MPF assets into its Gold rated AIA MPF – Prime Value Choice scheme, a solid option for those looking to make the most of their retirement savings. It’s a great opportunity to streamline your MPF while benefiting from AIA’s well-regarded investment platform.
But dare I say it, making MPF easier for members is more than just about DIS and consolidation, it’s also about understanding your MPF portfolio. Understanding the mechanics of your MPF portfolio is so important that even official industry bodies write about it but perhaps not always in language that people on the street best understands, so who better to de-cypher technical jargon into everyday language than Miss MPF!
What Miss MPF says about MPF portfolios….
“Mr MPF has said before, and he’ll say it again—your MPF matters, and it needs to work for you, so here’s the deal…
….your MPF portfolio is basically the selection of funds where your MPF money goes into based on your investment choices. Think of it as your financial playlist—customisable and tailored to your vibe. Different funds come with different risks—like equities, which are spicy, or DIS (Default Investment Strategy), which is more chill and cautious.
And here’s the kicker: your MPF isn’t just for next week; it’s for the next 40+ years (yes, really). That’s why tweaking your portfolio as you age is key. Over time, you might want to shift from higher-risk and return assets like stocks (a little wild) to lower-risk ones like bonds (nice and steady). It’s all about balancing risk and reward as life moves along.
You’ve also got options when it comes to managing your MPF funds. Whether you want to tweak your current investments, adjust where your future contributions go, or both, it’s all in your hands. Here’s how:
Switching funds: Think of it like maximising your existing wardrobe. You can “switch out” and “switch in” all or some of your existing funds’ units to create the perfect balance of your existing funds, for your changing goals.
Rebalancing portfolios: Time to reorganize and make a change! A bit like selling your existing wardrobe and using the proceeds to update your look. This involves redeeming your current fund investments and reallocating them to create a fresh new look.
You can even update how your contributions are split between different funds going forward.
At the end of the day, it’s all about making your MPF work for you.”
Mr MPF couldn’t have put it any better than his young progeny. DIS, consolidation, and now MPF portfolios. MPF learning snippets to help you make your MPF work best for you and we’re hoping you’ve learned something today….and if it’s just one thing, then let it be AIA’s one-off bonus up to HK$18,888 offer to consolidate MPF. Unlike your MPF portfolio which is with you for life, this offer expires, on the 15th of July.
*AIA Desired Retirement Tracker, March 2024
This article was written by MPF Ratings, Hong Kong’s independent provider of MPF research, views, and education. The information in this blog is general in nature and does not consider your personal situation. You should assess whether the information meets your needs and, where appropriate, seek professional advice from a financial adviser.
