From UK Pension to MPF

Are there any pensions specialists in Hong Kong familiar with both MPF and UK schemes? We're planning on staying put in HK and will move from an ex-pat package to local one (with same company), therefore need to understand the implications of leaving long-standing UK scheme and starting MPF.


The UK and HK HR departments within the company have outlined the absolute basics from what they know, but we also need independent specialist advice.


Also, I have several fairly worthless pension schemes doing nothing in the UK. I'm looking for a financial person who can sift through all the paperwork and advise me on what, if anything, I should be doing with them.


We're not looking for investment advice from a financial planner. Would appreciate any pointers. Thanks.

Many thanks, qpzmgh - very useful to get some insight on all this.

Singapore has recently had its QROPS certificate removed by HMRC in the UK.


At the moment this has no implication for Hong Kong QROPS however having heard from a friend who has spoken with HMRC their guidance is to not use Hong Kong QROPS at present as they are looking into the viability of Hong Kong QROPS from a number of stand points.


Guernsey would appear to be the safest place to transfer your pension under QROPS at present. But if in doubt leave your pensions in the UK.


With regards Dive Bum's comments re MPF the reason why you would bother to make additional contributions into MPF as opposed to a simple savings plan is because the MPF holds your money in trust meaning it is segregated from the rest of your personal assets. So for example if you were to be sued and all your assets claimed your MPF would be safe.


In addition if your employer allows you to, you are able to make a 15% contribution of your total pay package (including salary, bonus & housing allowance) as an employer contribution and you can therefore obtain tax relief on this and reduce your salaries tax liability.


Finally, MPF is actually very cost effective. It seems to get a lot of bad press but bear in mind you really on pay in the region of 2% p.a. if in an equity fund (a bit more for a guaranteed fund). You could argue that this is expensive for a mandatory type arrangement but other than ORSO there is really nothing cheaper available to you in HK other than buying ETF funds on the Hang Seng index.


This compares to fees via JF & Fidelity of about 1.75% p.a. on the funds and sales charges each time you buy, sell and switch of up to 5%.