|Title: Hong Kong's Mandatory Provident Fund|
|Reference Number: 1021|
|Publication Date: September 2000|
| Author(s): |
The University of Hong Kong
Hong Kong's Mandatory Provident Fund is a forced saving scheme for retirement. This paper discusses the institutional features of the system and examines the reasons for forcing workers to save for retirement. Workers have to bear all the investment risks under the system. The MPF benefits are uncertain and may also be insufficient, with the replacement rates
for workers older than 50 lower than 20 percent under some realistic
scenarios. The lack of annuitization of the retirement benefits and
whether the MPF system can coexist with the existing welfare
programme for the aged are also explored in the paper.
Published in Cato Journal 22:2, Fall 2002, pp.317-332.
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