MPF withdrawals on the rise

Staff reporter

The number of Mandatory Provident Fund early withdrawals due to permanent departure from the city increased 4 percent to 7,600 cases in the third quarter, hitting a quarterly high in a year.

The amount involved went up 6.6 percent quarter-on-quarter to HK$1.81 billion, according to data released by the Mandatory Provident Fund Schemes Authority.

However, if compared to a year ago, the number of early withdrawals and the amount dipped by 12.6 percent and 18 percent respectively.

For the first nine months, there were 21,400 cases of early MPF withdrawals because of permanent departure, involving HK$5 billion, down 6 percent and 10 percent from one year ago respectively.

Early withdrawals hit a peak in the financial year ending April 2021, then MPF contributors withdrawing almost HK$6.57 billion citing permanent departure, the highest since records became available in the 2014-2015 financial year.

Hong Kong was hit by the Covid-19 pandemic at that time.

The authority said that the number of MPF withdrawals because of retirement and early retirement respectively stood at 39,700 and 6,900 cases in the quarter, involving HK$5 billion and HK$1.5 billion.

The number of MPF withdrawals as a result of offsetting long service payments during the third quarter stood at 6,700 cases and the total amount of long service payments offset was HK$917 million.

Meanwhile, the authority revealed the total MPF assets amounted to nearly HK$1.33 trillion as of September, up by 8.1 percent quarter-on-quarter.

Up to September, MPF's average annualized net rates of return for equity funds and mixed assets funds have respectively been 4.5 percent and 4.2 percent since the system's inception in 2000.