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MPF Education

Three Tips You Need to Know to Fend Off Market Noise


We are constantly bombarded by a mass of groundless information every day; unfounded rumours are equally rampant in the investment market. Market noises often hinder sound judgments when members build their MPF asset allocation strategies, so we must learn to discern and fend off baseless information.

How to Calculate the Offsetting Amount in MPF ?


At the end of June, the last Executive Council endorsed the government’s proposal to abolish the MPF offsetting mechanism before a deadline. An effective date will be determined, according to the proposal. When that happens, the MPF offsetting mechanism on severance and long-service payments will be scrapped once and for all. In the proposed 10-year transition period, the government will offer employers a subsidy of $7.9 billion. After the effective date, the amount of a severance payment and long-service payments calculated with the years of work post-effective date will be adjusted downwards from the existing entitlement of two-thirds of the monthly salary to half the monthly salary.


How to Use the MPF "e-Enquiry of Personal Account" Service


Consolidating multiple MPF accounts is one of the best ways to enhance the management efficiency of MPF. However, what can members do if they can’t remember how many personal accounts they possess? In the past, members could fill out an application form and send the completed form together with a copy of their identification documents to the MPFA by post or fax. They could also make the enquiry in person in the MPFA’s office.

How to Develop the Right Attitude to MPF Management?


Kung Fu (martial arts) is an integral part of traditional Chinese culture. To become a proficient Kung Fu practitioner, however, it is not enough to learn punching and kicking techniques; one must also understand the mind-set of the art. Being skilful and having the right attitude are both prerequisites for mastering Kung Fu, and the same goes for MPF management. To effectively manage MPF assets, being knowledgeable about investment is not enough; one must also have the right attitude.

How to Enquire about Your "Unclaimed Benefits"?


Imagine winning the lottery but missing out on the prize because you didn't know your ticket was the winner. It turns out that this is not an uncommon blunder among lottery winners. According to data from the Hong Kong Jockey Club's 2015/16 annual report, the amount of Mark Six prizes not collected by winners in that financial year alone totaled HK$108 million. Oddly enough, there is a similar situation in the realm of MPF in the form of "unclaimed benefits".

How should bond fund investors manage interest rate risks?


At the start of the year, the market was overshadowed by an imminent rate hike by the US Federal Reserve. Bond investors were worried: any interest rate increase would translate into falling bond prices. When the UK voted to leave the European Union in June, market uncertainties went through the roof. The market is speculating that central bankers, including Fed officials, will respond with further monetary easing and rate-cut exercises. In this highly uncertain environment, how should bond fund investors manage interest rate risks?

How to Avoid The Five Psychological Pitfalls in Investing


Successful investing requires constant learning and paying meticulous attention to market movements. However, technical knowledge alone is not enough – psychology also plays an important role. In this issue, we highlight five psychological traps in investing and look at ways to avoid them.

How to Build a Million-dollar Retirement Reserve Before the Age of 65


While becoming a millionaire is a dream for many, most of us are deterred by the perceived difficulties of the task and fail to take action. However, if members are willing to reserve a little time to do some planning, saving a million dollars is not an impossible mission. In fact, to retire at 65 with five million dollars in savings can be an attainable goal.

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