Hong Kong needs to reform pension fund system: PwC report
Hong Kong’s pension fund, Mandatory Provident Fund (MPF), a system which covers 73 percent of the employed population in Hong Kong, needs to address problems to manage risks, a PricewaterhouseCoopers (PwC) report said on Tuesday.
The problems include high fees, unattractive returns, a reliance on paper-based processing, and a blanket approach that offers few incentives for members to pay more into their MPF portfolios, said PwC’s Review of Hong Kong’s MPF System: Recommendations for Key Reforms.
Hong Kong is not immune to the global trends buffeting the pension landscape. The proportion of the population aged 65 and above is estimated to rise to 36 percent by 2064 from 15 percent in 2014, the report said. The overall dependency ratio, namely the number of people aged under 15 and over 64 relative to the population aged between 15 and 64, is projected to rise to 83.1 percent in 2064 from 37.1 percent in 2014, it said.
Read full content: Xinhua
