Advocacy group urges Hong Kong to let residents tap pension savings for homes
A Hong Kong advocacy group has urged the government to let residents use a portion of their mandatory pension savings for home purchases, one of several proposals submitted ahead of the policy address later this month. The Federation of Public Housing Estates noted on Wednesday that recent cuts to administration fees for the Mandatory Provident Fund (MPF) – the city’s compulsory retirement scheme…
A Hong Kong advocacy group has called on the government to allow residents to use a portion of their mandatory pension savings for purchasing homes. The Federation of Public Housing Estates put forward the proposal ahead of the upcoming policy address, noted the recent reduction in administration fees for the Mandatory Provident Fund (MPF), and argued that it is an opportune moment to relax withdrawal restrictions.
Chairman Man Yu-ming said that the flexibility would be particularly beneficial to young families under 40 aiming to buy homes. Vice-chairman Scott Leung Man-kwong, a lawmaker, proposed permitting partial pension withdrawals for homeownership to strike a balance between property ownership and retirement security, suggesting that the amount might not cover the downpayment but could help with expenses.
Leung pointed out that Singapore allows limited pension withdrawal for home purchases, with a requirement to refund the account upon property sale to curb speculation. The MPF Schemes Authority introduced a centralized electronic platform in 2024, reducing administration fees for 378 investment funds by more than 21% from April.
By the end of 2024, 125,000 MPF accounts held HK$1 million or more, with 10% belonging to workers under 40. Financial Secretary Paul Chan Mo-po had previously dismissed similar proposals in February, citing market volatility and concerns over retirement security. The federation submitted the proposal to the government in late August, ahead of the September 16 policy address, and also urged the government to revive the Tenants Purchase Scheme, which allows public housing residents to buy flats at a discount.
The Housing Authority has not added new estates to the original 39 since 2005, leaving about 30,000 designated homes unsold as of the end of 2025. The group suggested that the government offer existing tenants the option to move to other public rental estates to expedite the sales of the remaining flats.
Written by urgent.news from South China Morning Post - Hong Kong's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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