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The Mandatory Provident Fund (MPF) is part of your retirement fund. Before you decide what to do with the accrued benefits from your MPF account, you should know what options you have and what restrictions there are.

1. Withdrawing MPF benefits early

You may choose when to retire, but MPF rules state that you cannot withdraw your MPF benefits before you reach 65 years old unless:

  • You are at least 60 years old and take early retirement
  • You have left or are about to leave Hong Kong for good
  • You are permanently and totally unable to work
  • You have a terminal critical illness
  • You must have a balance of not more than $5,000 in an MPF scheme and do not have MPF benefits in any other MPF scheme. As at the date of your application, at least 12 months must have elapsed since your last contribution date
  • You passed away (Your accrued benefits are a part of your estate and therefore must be claimed by your personal representative)

Please read the Mandatory Provident Fund Schemes Authority (MPFA) article Early Withdrawal of MPF for more information.

2. Withdrawal options

If you reach 65 years old or take early retirement at the age of 60, you can take out your MPF benefits in full or in part. If taken out in part, you can decide when and how much, but note that if you take out benefits more than four times a year, your MPF scheme trustee can charge extra.

However you withdraw benefits, you should think carefully about how to use the money and manage it. In addition to paying for daily expenses, you could also make a fixed deposit, or invest according to your risk capacity and expected returns. Bear in mind the MPF is part of your retirement assets, along with your other retirement savings. Combined, they should provide for your retirement needs.

Ask your MPF scheme trustee for more information about how to withdraw your MPF benefits and the fees for doing so.

3. Keeping your MPF benefits

If you don’t need to take out your MPF benefits, or take into account the prevailing market conditions (such as funds are sold at a low price), you can instead leave all your MPF benefits in the account to continue investing.

Your MPF benefits will stay invested in the funds you chose, and rise or fall in value depending on the market. You should review your investments regularly and make changes if needed. Your MPF trustee will continue to charge management and other fees based on the total value of assets in your MPF account.

4. Further withdrawal regulations

  • Voluntary contributions
    If you have made voluntary contributions, check with your MPF trustee about the rules for withdrawing benefits from those contributions.
  • Terms for guaranteed funds
    If your MPF investments are for guaranteed funds, take note of the terms. For example, when you withdraw the benefits, you may not be able to get the guaranteed return unless you hold the fund for a set minimum period.
  • Offsetting MPF
    If your employer has to pay you Long Service Payment or a Severance Payment, they can apply to the MPF trustee to claim some of that money back from the employer’s contribution to your MPF, according to the Labour Ordinance.