Home 6 Major Decision Points on MPF Investment Types of MPF Funds 5 Thing to look out for in Your Retirement Investment Useful Tools & Resources
Choosing FundChoosing SchemeAdditional ContributionsChanging JobFund Choices AdjustmentAfter Retirement Overview of Fund Types Planning for Retirement at Different Stages of Your LifeEstimating Your Retirement NeedsAccumulating Wealth for Your RetirementReviewing Your Retirement Investment PortfolioWithdrawing Your Retirement Savings Tools and Documents on MPF investmentTools on Retirement ManagementMultimedia ZoneFeature ArticlesPublications And LeafletsSocial Media PlatformsGlossaryUseful Link

What should I Do with My MPF Accrued Benefits when I Retire?

Three Ways to Manage Your MPF Benefits when You Retire

Under the MPF System, once you reach the age of 65, you can choose any one of the following ways to manage your MPF benefits (including the MPF benefits generated from the mandatory contributions and the tax deductible voluntary contributions):

  • 1
    Withdraw your MPF benefits by instalments
  • 2
    Withdraw all your MPF benefits in a lump sum
  • 3
    Retain all the MPF benefits in your account for continuous investment
Image elderly couple

Learn More Trustees are required to process free of charge* withdrawals for the first four instalments of a scheme member in a year. If you intend to withdraw your MPF benefits by instalments, you should contact your trustee to find out more about the withdrawal arrangements before making an application.

*Other than necessary transaction costs which are incurred, or reasonably likely to be incurred, by the trustee in selling or purchasing investments in order to give effect to the payment; and payable to a party other than that trustee.

Factors to Consider and Points to Note

Please pay attention to the following points before making a decision on how to manage your MPF benefits:

Consider your personal needs

Think about the amount of assets you may have and the amount you will need when you retire. For instance, ask yourself whether you need money immediately to cover your daily expenses or for other purposes. MPF is only part of your retirement assets, so you should plan for your retirement well by considering your MPF together with any other retirement savings you may have.

Learn more about the operation of MPF funds

MPF invests in funds. Fund prices change due to market fluctuations, and this can affect the value of your MPF assets. After you have filed a withdrawal application, your trustee will sell the fund units in your account at the current market price and pay you the relevant amount. However, the price obtained when the trustee sells your funds may be different from the price prevailing when you submit your withdrawal application.

Find out the withdrawal rules of voluntary contributions

Withdrawal of MPF benefits derived from voluntary contributions is subject to the governing rules of the scheme concerned. If your account includes voluntary contributions, you should check the relevant MPF Scheme Brochure, or contact your trustee for the withdrawal rules of voluntary contributions.

Be aware of the conditions associated with a Guaranteed Fund

If you have invested in a Guaranteed Fund, you should check whether withdrawal in a lump sum or by instalments will result in the failure to fulfil certain qualifying conditions, such as the minimum investment period. This could make you ineligible for the guaranteed returns. Please contact your trustee for details.

Review your investment portfolio

Remember that any MPF benefits you do not withdraw will be retained in the account for continuous investment. You should therefore regularly review your investment portfolio, and consider whether you need to make any adjustment.
Learn More Regardless of whether you choose to withdraw your MPF benefits by instalments or retain them all in your account, any benefits you do not withdraw will continue to be invested in your chosen fund(s). The values of these assets may change due to market fluctuations, and you should be aware of the investment risks involved. In addition, your account will, as usual, be subject to management fees and other charges by the trustee based on its total asset value.

Early Withdrawal of MPF

Under the law, there are specific circumstances where accrued benefits may be withdrawn before you reach age 65. They are:

  • Early retirement
  • Permanent departure from Hong Kong
  • Total incapacity
  • Terminal illness
  • Small balance
  • Death

Click to learn more