12th December 2025
In 1969, a massive oil field was discovered in an unlikely location off the coast of Norway. Two years later, commercial oil production began, transforming Norway into one of the world’s wealthiest nations—but perhaps not in the way most people imagine. With its energy needs largely met by low-cost and environmentally friendly hydropower, Norway exports the majority of its petroleum. Instead of spending the revenue outright, the country established its own investment unit, saving and wisely investing its oil wealth.
Today, Norges Bank Investment Management manages about US$2 trillion—roughly US$350,000 per Norwegian citizen.
Why does Mr. MPF share this story with you? As mentioned last month, we’re always on a relentless mission to bring you the best practical financial education stories. With the year-end approaching, we previously highlighted that rebalancing your portfolio is one of the most critical investment decisions you can make, especially at year’s end. But there’s another equally important area to focus on: income planning.
So, what does Norway’s oil windfall have to do with income planning? It turns out, a lot. And there’s much we can learn from it.
Norway follows a 3% spending rule. This rule limits annual government spending from its massive oil fund to its expected real return, historically around 3%. This ensures the fund’s capital lasts for future generations. Inspired by this approach, Mr. MPF has adhered to the 3% rule for years, withdrawing no more than 3% of his investment portfolio annually to meet expenses (children’s school fees don’t pay themselves!). While it’s a great strategy, it requires discipline and effort.
The good news for you? The Manulife MPF Retirement Income Fund, part of the Gold rated Manulife Global Select MPF Scheme, can do much of the work for you—giving you fewer headaches and more time to enjoy life in retirement.
The Manulife MPF Retirement Income Fund was launched five years ago in response to the Mandatory Provident Fund Schemes Authority’s (MPFA) call for better retirement solutions under the MPF system.
The fund’s primary objective is to provide regular and stable income through monthly dividend distributions to members’ MPF accounts, while its secondary goal is long-term capital growth. For members below retirement age (65), these dividends are automatically reinvested into the fund. Once members reach 65 or older, the monthly dividends are distributed via Manulife’s MPF Interest Fund.
While income planning is crucial at retirement, it’s also important at any age. After all, no matter how old you are, you should never spend money faster than you earn it. The fund is available to investors of all ages, with no investment or contribution threshold and no minimum investment period, offering flexibility for members to grow their capital before retirement while preserving income for their later years.
You don’t have to be Norwegian to enjoy the benefits of disciplined investing and income planning. You just need to be a member of the Gold rated Manulife Global Select MPF Scheme—MPF’s largest scheme.
The information contained in this blog is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
