MPFA Chairman Lau Mak Ka-xuan published a blog today (28th), she mentioned that self-employed people have increased their awareness of MPF in recent years. 215,000, increased to 229,000 in October of the same year, and the participation rate increased from 73% to 78%, an increase of 5 percentage points in just six months. As of the end of December last year, more than 231,000 self-employed persons had participated in the MPF scheme , the participation rate reached 80%.
She also encouraged self-employed people to make good use of MPF to establish retirement savings habits, and through the compound interest effect to invest in rollovers to expand their retirement reserves. The MPF entitlement will be doubled.
Liu Mai Jiaxuan pointed out that as of the end of December last year, more than 231,000 self-employed persons had participated in the MPF scheme, with a participation rate of 80%.
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Lau Mai Jiaxuan said that due to the impact of the epidemic, the government has introduced various relief measures in the past two years to help wage earners, self-employed persons and enterprises tide over the difficulties together. For example, the scheme received about 470,000 and 300,000 applications respectively, including many self-employed persons.
She went on to point out that she noticed that self-employed people's awareness of participating in MPF contributions has also increased in recent years. Since the Government launched the "Employment Support" scheme in 2020, the number of self-employed people participating in MPF schemes will be reduced from April 2020. From 215,000 in January to 229,000 in October of the same year, the participation rate rose by 5 percentage points in just six months, from 73% to 78%.
As of the end of December last year, more than 231,000 self-employed persons had joined the MPF scheme, with a participation rate of 80%.
She mentioned that since the MPF system covers a wide range of working population, the use of MPF records can simplify administrative procedures when implementing employment protection measures, allowing applicants to obtain assistance faster. In addition to retirement protection, it is playing a greater social function.”
Lau said that more and more wage earners are becoming self-employed and joining the "slash family", but this new employment model enjoys greater freedom, but it lacks the retirement benefits provided by employers.
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Lau Mak Ka-xuan said that more and more wage earners are becoming self-employed and joining the "slash family" (i.e. holding multiple freelance jobs). This new employment model enjoys greater freedom, but it lacks the retirement benefits provided by employers. .
She went on to say that under the MPF system, self-employed persons aged between 18 and 64, regardless of their relevant income, are required to join the MPF scheme and are required to participate in the MPF scheme on a regular basis (either monthly or yearly). Contribute to an MPF scheme at 5% of the relevant income subject to a minimum and maximum relevant income level1.
In other words, self-employed persons are still required to join the MPF scheme even if their income is below the relevant minimum relevant income level, but they are not required to make contributions until their income exceeds the relevant minimum relevant income level.
She added that self-employed people are encouraged to make good use of MPF to establish self-disciplined retirement savings habits, and to expand their retirement reserves through compound interest effect investment rollover.
She mentioned that it would be more effective if regular voluntary contributions could be made in addition to the mandatory contributions.
She takes
a self-employed person who starts to make MPF contributions at the age of 25 as an example. If his monthly income is $18,500, his income level will only be adjusted according to inflation every year. "Compounding interest effect", it is estimated that the self-employed person will have about $756,000 in MPF when he retires at the age of 65.
She said that under the same conditions, if the self-employed person makes an additional voluntary contribution of 5% of his income every month, the estimated MPF at the age of 65 will increase to $1,512,000, and he will be able to obtain more robust protection at retirement. .
Lau Mak Ka-xuan said that the MPFA has been actively promoting the participation of self-employed persons in the MPF scheme for many years. They send messages to self-employed workers, such as coaches, hobby class instructors and craftsmen, reminding them of their MPF responsibilities and the importance of using MPF well for retirement protection.
As for the eMPF platform currently under construction, it will not only bring great convenience to employers and employees in managing MPF, but also help self-employed persons manage MPF more conveniently and flexibly.
She said the MPFA will also arrange consultation sessions for the self-employed to introduce the design of the platform and listen to their opinions.
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