6th January 2025 – (Hong Kong) In 2024, the 4.75 million members of Hong Kong’s Mandatory Provident Fund (MPF) witnessed a significant 13 per cent rise in their pension assets, buoyed by the strongest investment returns in four years. The MPF generated a total of HK$102.4 billion, translating to an average gain of HK$21,500 for each member, according to data from MPF Ratings, an independent research firm.
The total assets of the MPF now stand at HK$1.29 trillion, factoring in both investment gains and new contributions from members. This figure equates to HK$271,500 per member, reflecting a 13 per cent increase compared to the previous year. On average, this represents a portfolio growth of HK$31,600 for each member.
The 379 investment funds within the MPF achieved an average return of 8.8 per cent for the year, a notable improvement from the 3.5 per cent gain in 2023 and a stark contrast to the 15.7 per cent loss experienced in 2022. This marks the best annual return since the 11.4 per cent gain recorded in 2020.
Established in 2000, the MPF is a compulsory retirement scheme that collects monthly contributions from both employers and employees, amounting to up to 5 per cent of an employee’s monthly salary. The mandatory contribution is capped at HK$3,000 per month, with half contributed by the employee and matched by the employer. Funds are invested according to the member’s preferences, and contributions, along with investment earnings, can be accessed at age 65.
