The Mandatory Provident Fund (MPF) savings are the most commonly anticipated source of retirement income among employees (63%) and the most frequently cited current source among retirees (49%), underscoring MPF’s central role in the retirement ecosystem, according to an MPF investor survey by the Hong Kong Investment Funds Association (HKIFA).
The HKIFA commissioned Cimigo to conduct an online survey between August 22 to September 1, 2025 amongst 1,000 Hong Kong employees and retirees.
Investment Outlook: Cautiously Optimistic, More Interest in US and Hong Kong Equities
Equities are the most prevalent MPF investment category, held by 82% of respondents. Hong Kong equities remain the most popular fund category. (Slide 5) Looking ahead to the next 12 months, respondents indicated a relative preference for Hong Kong, China, and the United States equities. (Slide 6 & 7)
In terms of MPF fund choices, 53% of respondents believed the current investment product range is adequate, particularly amongst the age group of 50 or above. (Slide 9) Respondents are most interested in adding sustainable fund options in the MPF scheme (37%), followed by new technology industries funds (31%), and high yield bond funds (30%). (Slide 10)
Mr. Philip Tso, co-chair of the HKIFA Pensions Subcommittee, remarked, “76% of people review their MPF portfolios at least annually, reflecting decent engagement. However, the main reason for adjusting the portfolio is because of performance and volatility, which could lead to buy high and sell low. As MPF is a long-term investment spanning decades, it is important for employees to regularly review and manage a balanced and diversified portfolio based on their life stages, financial goals, and risk tolerance.”
MPF Features: Growing awareness and usage for DIS; More Education Needed for TVC
Slightly over half of the respondents were aware of the Default Investment Strategy (DIS). Among those aware, 44% actively chose to invest in DIS, while 22% had DIS by default. The active selection was more prevalent amongst those aged 50 or above. (Slide 14) 54% of current DIS investors allocated at least 40% of their MPF assets to DIS funds, indicating a strong preference. (Slide 15)
Top reasons for DIS investments include long-term return potential (30%), followed by the desire to avoid a complicated fund selection process (28%). In contrast, for investors who were aware of DIS but not participating, primarily cited the following reasons: prefer to customise their asset allocation themselves (51%), hold the belief that self-selected funds offer higher potential returns (41%), underscoring a strong desire for greater personal control over investment decisions. Notably, about one-third said the DIS returns seem too conservative. (Slide 16 & 17)
Although overall awareness of the Tax Deductible Voluntary Contributions (TVC) was higher than that of DIS (71%), the level of current participation amongst those aware was limited to 34%. Participation rates were markedly lower within the 30 to 49 age cohort. (Slide 18)
Among current and former TVC contributors, the primary reason cited for participation was mandatory retirement savings can help prevent impulsive spending (29%), followed by employers’ contribution match (27%). (Slide 19) The introduction of regular payouts and reduced fees were the most frequently suggested measures to enhance TVC participation, each cited by at least 30% of investors. (Slide 20)
Ms. Chalotte Chan, co-chair of the HKIFA Pensions Subcommittee, said, “It is encouraging to see more employees recognise the benefits of DIS. The Core Accumulation Fund under DIS returned an average 9.8% in the past 12 months as of September 2025, and an annualised 6.8% since its launch in 2017 on average. We believe more education can be done to promote the benefits of both DIS and TVC as convenient and effective retirement savings tools.”
Retirement Planning: Challenging with Strong Demand for Advice; Diverging views on AI-driven Advice
MPF remains the primary source of support in retirement, as indicated by both employees and retirees. (Slide 24) In terms of MPF withdrawal preferences, majority of retirees (60%) opted for periodic withdrawals, while only 17% said they had fully withdrawn their MPF savings, suggesting retirees had positive views towards MPF. (Slide 25)
60% of all investors find retirement planning challenging. While this sentiment is relatively lower among individuals aged 50 and above, it remains substantial at 54%. (Slide 26) A staggering 82% of respondents expressed need for retirement planning advice, with a higher percentage among the youngest group (Slide 27).
While overall usage of online channels for retirement and financial planning advice exceeded that of offline channels, the most commonly used channel remained informal advice from their surrounding network (21%), surpassing any specific online channels. (Slide 28)
Half of the respondents reported having used AI tools for retirement planning, with regular usage being more common among adults aged 18 to 29. Although 53% of those aged 30 to 39 have not yet used AI for this purpose, a significant proportion expressed interest in learning to use such tools in the future. (Slide 29) Although the AI usage is on the rise, overall trust in AI-generated retirement advice remains low at 35%, with those aged 18 to 29 and 50+ demonstrating greater confidence in AI recommendations. (Slide 30)
Mr. Phillip Saran, vice-chairman of the HKIFA Pensions Subcommittee, said, “The findings reaffirm the consistent demand for structured education and professional guidance for investors on retirement planning, as most respondents relied primarily on anecdotal advice from friends and relatives. While AI tools might offer great potential for comprehensive analysis and real-time updates, ensuring the reliability and accuracy of AI-generated recommendations remains critical to building trust and driving wider adoption.”
“With the eMPF platform becoming fully operational soon, MPF members can enjoy utilising this centralised platform to review and manage their retirement savings more easily and efficiently. The HKIFA remains committed to working with regulators and industry stakeholders to enhance MPF members’ retirement outcomes through digitisation and product innovation,” he added.
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About HKIFA
The Hong Kong Investment Funds Association (HKIFA) is a non-profit-making trade association that represents the fund management industry in Hong Kong. It is committed to entrenching Hong Kong’s position as an international fund management hub. The HKIFA has two major roles: consultation and education. For more information, visit hkifa.org.hk, or follow HKIFA on LinkedIn.