The Mandatory Provident Fund at 25: Hong Kong’s Financial Sector Reflects and Reimagines

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Joint report by PwC and The Hong Kong Retirement Schemes Association identifies possible options for the MPF’s development

Hong Kong, 9 June 2025 – In preparation for the 25th anniversary of the launch of the Mandatory Provident Fund (MPF) in December, The Hong Kong Retirement Schemes Association (HKRSA) and PwC today launch a new paper – Hong Kong’s Mandatory Provident Fund (MPF) System: Paving a visionary path forward – which assesses the scheme’s progress and outlines bold, forward-looking recommendations to ensure the MPF remains resilient, relevant, and purpose-driven in an ever-evolving landscape.

The report describes how, since its establishment in 2000, the MPF System has made significant strides in building structured and regulated retirement protection for Hong Kong’s population. There have been a series of initiatives over the past 25 years to ensure that it remains future-ready, with the new eMPF Platform representing a major milestone. As the report argues, while it is currently viewed as an administrative upgrade, eMPF has the potential to revolutionise member engagement. It can empower individuals to take greater control of their retirement planning, optimise their investment strategies and achieve better financial outcomes. 

By 31 March 2025, there were 4.79m MPF scheme members holding over 11m accounts. The 24 MPF schemes are made up of 380 constituent funds with total assets under management (AUM) of HK$1.34 tr (US$170bn).

“Hong Kong’s pension assets per capita may be modest compared to some other markets, but this is chiefly because the MPF System is still relatively young and monthly contributions are still rather low,” says Marie-Anne Kong, Asset & Wealth Management Leader, PwC Hong Kong. “As the system continues to mature, there are opportunities to expand product diversity, integrate technology, and foster member engagement, potentially leading to greater pension growth.”

The report finds that the MPF System covers an extremely disparate investor base. For the lowest earners, the savings accrued may represent a significant pot. However, for most members, the HK$3,000 monthly investment will not amount to enough to meet their future needs. Despite this, the report argues, the MPF System has played a pivotal role in advancing the maturity of Hong Kong’s US$4 trillion asset and wealth management sector. With AUM reaching US$170 billion, the MPF System not only anchors long-term capital but also fosters financial inclusion across the various demographics in the city.

“The MPF System encourages the habit of saving and investing regularly, which is a critical financial discipline,” says Janet Li, Chairman, The Hong Kong Retirement Schemes Association. “It also grants investors access to a wide range of funds. This exposure to investment markets, which can be continually enhanced, contributes to financial literacy.”

The report makes a number of recommendations for strengthening the role played by the MPF System. It argues that the System could explore more flexible and tailored approaches that consider the diverse needs of its member base and better support retirement savings in the context of Hong Kong’s economic landscape.

For example, MPF providers could seek to more closely meet the needs of Hong Kong’s business community. Some employers may wish to customise pension plans to meet specific objectives, such as improving employee attraction and retention. Others may wish to offer funds and schemes that reflect their corporate values – such as sustainability. At the same time, many investors prefer not to spend time making investment decisions or selecting individual funds. Instead, they may hope to rely on professionals for strategic asset allocation - reflecting a clear preference for a discretionary investment approach. This could take the form of a ‘unified investment portfolio’ that operates independently of existing schemes and individual fund structures. 

“The launch of the eMPF Platform marks the beginning of a period of transformation for the MPF System,” says Helen Li, Asset & Wealth Management Partner, PwC Hong Kong. “As the eMPF platform continues to evolve and mature, advanced features such as data analytics, portfolio management tools, and even robo-advisory services, could be integrated within the platform.”

The report also explores possible models/ approaches such as how the eMPF Platform can be integrated into the broader wealth management ecosystem; transitioning from a scheme-based to a funds-based platform; creating a unified investment portfolio independent of existing schemes and developing an “attached-but-detached” model to centralise Default Investment Strategy (DIS) schemes. Attributes of the potential enhancements can help scheme members to achieve long-term financial security and – in the process – strengthen the city’s position as an International Financial Centre. 

Notes to Editors 

Download the report: https://www.pwchk.com/en/asset-management/hongkong-mandatory-provident-fund-system-jun2025.pdf.

About The Hong Kong Retirement Schemes Association

The HKRSA was established in 1996 to lead and promote sustainable and better retirement outcomes through the following via the HKRSA and Retirehk.com platforms:

Empower – We empower employees through employers with retirement planning and tools;

Advocate – We advocate key retirement issues, retirement income and look for value creation;

Share – We share and facilitate retirement information and knowledge.

Find out more at www.hkrsa.org.hk/www.retirehk.com.