The Mandatory Provident Fund Hong Kong is a compulsory saving scheme that basically covers all employees and self-employed persons aged 18-64 years. Considering it’s specifically designed to provide retirement benefits for your employees, you ought to exercise caution when deciding on which MPF scheme is best for you. Even though it may seem like a walk in the park, there’s more to it than meets the eye when making a decision.
Lucky enough, we are here to offer a helping hand. Today we will share some of the tips to employ when choosing which MPF scheme in Hong Kong is best for you. Read on to find out more.
Risk Level of Funds
By now you should be aware of the fact that there are three different types of mandatory provident fund Hong Kong schemes. They include the Master Trust Schemes, Employer-sponsored schemes and the Industry schemes. Before making any decision, it is highly advisable that you factor in the risk levels of funds.
To offer a helping hand, opting for a bank is regarded to be relatively low-risk. Things tend to be different when it comes to an insurance firm as they offer a more diversified investment portfolio. For you to make an informed decision, it is highly advisable that you examine the list of Mandatory Provident Fund Hong Kong approved trustees before settling on one.
Even though it might sound obvious, this is amongst the most important things that employers skimp on when looking for the best Mandatory Provident Fund Hong Kong trustee. Remember, even the slightest of mistakes you make might end up proving costly in the long run. That’s why you must always examine the level of customer support offered before signing on the dotted line.
The Bottom Line
Many factors come into play when choosing which MPF is best for you. At no time should you make a decision for the sheer sake of it. You want to reap maximum benefits and this is only possible if you understand the important things to watch out for.
Keep in mind employers have an obligation of enrolling their full-time and part-time employees into an Mandatory Provident Fund Hong Kong scheme within the first 60 calendar days of employment. For this reason, you must meet this obligation to avoid ending up on the wrong side of law.
Lina Mark is the Partner and Editor-In-Chief at Keulj.us. She loves technology and is always hooked on new technology in the market. You will often find her browsing the web for interesting content (mostly sci-fi and tech). She is addicted to movies (mainly action) and loves to read interesting books every once in a while.