I. Introduction to the Mandatory Provident Fund (MPF) System 強制性公積金（強積金）制度簡介

Income falls on retirement, and individuals may lack sufficient financial resources to meet their living expenses, so they should save early where they can afford to do so. Limitations in personal saving and family support create a need for properly designed retirement protection frameworks to address the risk of old-age poverty.

Longer life expectancy and declining fertility are ageing Hong Kong's population, leaving the working population to support more retirees for longer. Smaller households also weaken the availability of family support, increasing the need to strengthen retirement protection.

The MPF System emerged from prolonged debate and widespread consultation to provide basic retirement protection for Hong Kong’s employed population. Distinguish four stages: passage of the Ordinance in July 1995, detailed subsidiary legislation in March 1998, establishment of the MPFA in September 1998, and commencement of the system in December 2000.

MPF forms part of Hong Kong’s retirement protection framework: mandatory contributions belong to pillar two, while voluntary contributions form part of pillar three. The pillars must complement one another, as MPF alone cannot meet all the retirement needs of Hong Kong’s population.

MPF is a pillar two retirement protection system that builds members’ retirement savings through mandatory participation and employment-based contributions. It uses a defined contribution model, is managed by private entities and is fully funded, with members’ accrued benefits depending on contributions and investment returns.