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By Francis Chung, executive chairman, MPF Ratings
Is your organisation’s MPF provider meeting expectations? Take this year’s Employer MPF Expectations Survey to find out how well your provider is faring compared to the competition (scroll down for the survey).
Rightly or wrongly, the MPF system obligates employers to be functionally responsible for providing retirement protection for all eligible Hong Kong workers from age 18 until they retire. It’s a big responsibility, but one which Hong Kong employers appear to take seriously – but is your MPF provider listening?
For the past three years, MPF Ratings and the Employers’ Federation of Hong Kong have compiled an annual Employer MPF Expectations Survey to track the views, opinions and trends of employers. Last year over 80% of respondents felt at least “some” responsibility for their employees’ MPF investments (see Chart 1).
A positive response which speaks strongly to the attitude of employers’ employee duty of care, but despite the strong sense of responsibility, the survey also highlighted gaps, which should be filled by the MPF industry. However the onus is presently on HR executives who are not best equipped to deal with the issues.
Chart 1: How much responsibility do you feel the employer has to ensure employees invest appropriately?
Source: 2020 Employer MPF Expectations Survey
More than 1 in 3 employers have said they’d be either “interested” or “very interested” in a certified introduction to MPF and financial planning for their employees (see Chart 2), additionally over 40% of respondents stated that their HR executives have been approached for MPF guidance and investment advice by employees.
Understandable cries of self-help when one considers that over 90% of respondents believe their MPF provider “should provide investment advice services” yet only 20% of respondents claimed their MPF provider “already provides investment advice services”.
Chart 2: If your MPF provider offered your company’s executives a certified introduction to financial and retirement planning how interested would you be?
Source: 2020 Employer MPF Expectations Survey
With average MPF balances now at a record $245,000 and forecast to double within a decade, there will be a greater need to fill the financial advice and financial literacy gap, one which the MPF industry at large has a duty fulfil but one which employers can also influence – by participating in the 4th annual Employer MPF Expectations Survey, and in doing so have the chance to win a case of French champagne.
This year, MPF Ratings is proud to announce Human Resources Magazine as a collaborating partner for the Employer MPF Expectations Survey.
The collated results allow MPF Ratings, as an independent MPF provider of research views and opinions, to candidly share the views of employers with the MPF industry to improve the MPF experience for both employers and their employees. The MPF Expectations Survey also contributes to the selection of the 2021 Employers’ Choice Award winner which will be announced on the 4th of March at the 2021 MPF Awards.
Your input is of significant value to ensure a vibrant and successful MPF industry, one where the needs of employers and employees are best served by the MPF community. Click here to vote for your Employers’ Choice, the chance to win a case of French champagne, and to participate in the 4th annual Employer MPF Expectations Survey. The full insights will be shared through Human Resources Magazine and its digital channels shortly after the 2021 MPF Awards.
