More Hongkongers leave money in MPF pension plan to capitalise on market rally
Withdrawals by people leaving the city or retiring dropped last quarter, indicating expectations of greater gains, analysts say
Fewer Hongkongers withdrew funds from the city’s mandatory pension plan in the fourth quarter of last year, as a stock market rally prompted more members to leave their investments in place even when they stopped working or left the city, according to analysts.
The total amount withdrawn also declined by 38 per cent to HK$1.02 billion (US$130 million) from a quarter earlier, the MPFA data showed.
Withdrawals due to retirement or early retirement also declined. A total of 41,500 members withdrew their MPF balance for retirement reasons during the quarter, down 5 per cent from the third quarter. The sum these members withdrew declined 4 per cent to HK$6.6 billion, the authority’s data showed.
Withdrawals due to early retirement dropped by 2 per cent to 7,900, with the total amount withdrawn remaining almost unchanged at HK$2 billion.
The MPF has 4.8 million members.