The Mandatory Provident Fund Schemes Authority: Confident that the fee for the Mandatory Provident Fund will drop below 0.3% in the next financial year

The Mandatory Provident Fund (MPF) Authority has updated the latest developments of MPF Easy. So far, a total of 11 trustees have completed the transition to MPF Easy, which is currently serving 230,000 employer accounts and 7.4 million scheme member accounts, and has processed over 3 million administrative instructions. Currently, one trustee remains, HSBC, which has 4 schemes pending to join, expected to join the platform by the end of this month and next month.

The Chairman of the MPF Authority, Liu Mai Jia Xuan, stated that the fees for MPF Easy will be further reduced in the 2026 to 2027 fiscal year, with confidence that administrative fees will drop to below 30 basis points (0.3%), a reduction of more than 20% compared to the current 37 basis points. The original target for MPF Easy was to reduce fees to 20 to 25 basis points within 10 years, estimating total savings of HKD 30 billion to 40 billion. The authorities now estimate that this target will be achieved earlier, by the 2029 to 2030 fiscal year, with confidence that HKD 50 billion can be saved within 10 years.

In addition, the MPF Authority indicated that the average net return rate of the MPF this year is 16%. The MPF has been established for 25 years, during which it recorded net returns for 17 years, with an annualized net return rate of 4%