The Mandatory Provident Fund Schemes Authority (MPFA) recently announced that the number of MPF accounts with accrued benefits exceeding HK$1 million has reached 125,000 — double of that five years ago, reflecting the long-term accumulation and growth potential of the MPF system. This article explores key strategies to help you steadily move toward your financial goals and become an "MPF Millionaire."
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The first is to make continuous contributions over a long period. Most million-dollar MPF accounts are held by more "mature" members, 90% being aged over 40. Assuming a member has been contributing to the MPF system since its launched on December 1, 2000, with combined monthly mandatory contributions totaling HK$2,000 (from both employer and employee), such mandatory contributions alone would amount to nearly HK$600,000 at the end of August 2025. If the member's relevant income has consistently matched the mandatory contribution cap, total contributions could reach around HK$740,000. If both the employer and employee also made voluntary contributions, the accumulated balance could be even higher.
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The second key is the compounding effect of investment returns. With monthly contributions of HK$2,000 and an average annualized return of 4%, the account can surpass HK$1 million in just 25 years. According to MPFA’s report as of June 30, 2025, the average annual returns were: Equity Funds – 4.7%, Mixed Asset Funds – 4.3%, MPF Conservative Fund – 1%. This demonstrates that opting for more conservative funds due to concerns about market volatility could lead to relatively lower returns and hinder asset growth. It is therefore important to consider taking appropriate risks and choosing funds with growth potential which could help boost long-term returns.
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Not every member can pick the top-performing fund but achieving a long-term return of 4% is doable. As of July 31, 2025, the Core Accumulation Fund under the Default Investment Strategy (DIS) averaged an annual return of 6.5% since its inception date of April 1, 2017. This shows that even by investing in the so-called “lazy fund” (DIS), members can still benefit from substantial compounding effects — so long as they align their investment choices with their risk tolerance.
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The final tip is to make voluntary contributions. Currently, the combined mandatory contribution rate from both employer and employee is 10% of relevant income. If members can contribute an additional proportion voluntarily, it can meaningfully boost MPF balances. Tax-deductible voluntary contributions can also provide tax benefits.
Higher returns will always boost balances and as we have shown above, the Core Accumulation Fund has had a remarkable track record. However, we should rely more on things that are in our control for our retirement, and that is to contribute steadily and to contribute more to maintain the compounding effect, and to choose appropriate investment strategies so that we don’t underachieve when we have time to accumulate and weather investment risk.
| Title | File Type | File Size |
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| Essential tips for becoming an MPF millionaire | .6 MB |
