Hong Kong’s Mandatory Provident Fund (MPF) System — Paving a visionary path forward

June 2025

December 2025 marks the 25th anniversary of the launch of the MPF System. Since its establishment, the MPF System has made significant strides in building structured and regulated retirement protection for Hong Kong’s population. It plays a pivotal role in advancing the maturity of Hong Kong’s USD 4 trillion asset and wealth management sector. With AUM reaching USD 170 billion, the MPF System not only anchors long-term capital but also fosters financial inclusion across the various demographics in Hong Kong.

Building on many milestones already achieved, the journey toward an ever-improving pension system continues to be shaped by the interplay of system design, demographic trends, economic conditions, regulatory frameworks, and ultimately, the evolving needs of retirees. Investor education and engagement play a crucial role in this journey, equipping members with the knowledge and confidence to make informed decisions. Furthermore, enriching the product universe across the pension lifecycle, encompassing accumulation and decumulation stages, aligns with the increasing demand for varied and adaptable retirement planning solutions.

A transformative wave is already underway with the launch of the eMPF Platform. Through technology-enabled reforms, this initiative is streamlining administration and revolutionising member engagement. It serves as a springboard for broader initiatives, encompassing product innovation, distribution strategies, investor education and fostering trust.

Drawing upon roundtable discussions and qualitative interviews with market players, enriched by diverse experiences, insights and perspectives, this publication explores several possible visionary models to inspire constructive discussions on the future of Hong Kong’s pension landscape:

• A funds-based approach: Streamlining the current structure to allow scheme members to reduce complexity and minimise layering, thereby enhancing transparency, operational efficiency and ease of navigation for scheme members.
• A distinct unified portfolio: Transitioning from a scheme-based system to a unified investment portfolio independent of existing schemes.
• Attached-but-detached model: Centralising Default Investment Strategy (DIS) schemes into a single unified DIS.
• A holistic distribution platform for Hong Kong: Integrating the eMPF Platform with other asset and wealth management platforms to unlock synergies and foster a more cohesive financial ecosystem.