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The key to better informed MPF decisions

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On 27 April 2017, Gain Miles organised its 6th annual MPF Forum in Hong Kong. Themed Driving for better informed decisions, the invitation-only event brought together human resources professionals and corporate decision makers to learn about the importance of making the right choice for their MPF schemes, while helping their employees to maximise their retirement protection.

Over the last few years, the MPF Forum has positioned itself as one of the most significant annual events in the pension industry. This year, sponsors and speakers from Mandatory Provident Fund Schemes Authority (MPFA), AIA MPF, BCT Group, Manulife (International) Limited, and Sun Life Asset Management (HK) Limited, contributed to the success of the event.

The speakers discussed a range of topics including the latest figures of MPF accounts impacted by the recently launched Default Investment Strategy (DIS), members' concerns with regards to DIS, and the importance of MPF review for corporate schemes as well as individual accounts.

Delegates were also introduced to the disparity of fund performance and the huge difference on returns of investing in the best versus worst performing funds. Additionally, they heard about the importance of holistic planning from pre to post retirement. They were reminded that informed decision making should be applied throughout all stages in life, from the working stage when you start accumulating your savings, to post retirement options on savings and investment.

Before the final panel discussion of the morning, Gain Miles Group chief executive Dr. Gloria Siu spoke to the delegates about the company’s MPF Risk Profiling Questionnaire (RPQ) and its objectives.

“First and foremost, the RPQ is there to help members evaluate investment risk and return expectations, and to ensure they have sufficient knowledge to make the best decisions,” Siu told the room.

She emphasised Gain Miles' dedication to member education and provided details about the extended services the company offers to help members with their investment choices, including the use of RPQ.

Siu also revealed findings from the MPF Confidence Index Survey that strengthen the company's belief that member education is key. According to the survey results, over 85% of members were unaware of the MPF fees they pay. Additionally, over 75% of members did not review their MPF investment, mainly because they had no expectation of their MPF return, they found it too complicated, or due to a lack of knowledge.

Siu concluded by telling the delegates that member education is the key to driving better decisions on MPF. "The RPQ analysis that we commissioned from The Public Opinion Programme of The University of Hong Kong shows that members tend to approach MPF investments in a rational and logical manner, and that younger members are more willing to take higher investment risks.

"If members are provided with good information on fund choice, fund performance, fees and charges, and their risk tolerance level based on the RPQ, this will enable them to make the best decision," she said.

That, in a nutshell, is why Gain Miles advocates regular MPF scheme review and set up a personalised MPF servicing team in 2013, to further support the company's RPQ and member education efforts.

Rooted in Hong Kong since 1980, Gain Miles is a leader in the health and wealth industry, providing a comprehensive range of consultancy services including pension, employee benefits, corporate risk management and individual financial planning. The company serves a large number of multinational and local firms, as well as their employees, across all sectors.

Photo / Gain Miles

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