How to withdraw from Mandatory Provident Fund (MPF)? 6 Ways Beyond Retirement at 65 years old

Hong Kong’s retirement protection system is sound, and the Mandatory Provident Fund Scheme, or Mandatory Provident Fund (MPF), that employed persons participate in, is familiar to Hong Kong people. The law stipulates that the accumulated benefits can only be withdrawn at the age of 65. In fact, the MPFA still provides 6 “special circumstances” for Hong Kong people to receive the Mandatory Provident Fund (MPF) early.

Conditions/Methods for Withdrawal of Mandatory Provident Fund (MPF)

According to Hong Kong’s MPF legislation, MPF scheme members can withdraw their accumulated MPF from their “Mandatory Contribution” and “Tax Deductible Voluntary Contribution” accounts through the following 7 methods for their own use.

Generally divided into two categories, one is that the member reaches the age of 65, and the other is the early withdrawal of Mandatory Provident Fund (MPF) under specific circumstances:

1. Dealing with Mandatory Provident Fund (MPF) when you retire

According to the MPF law, if a scheme member reaches the age of 65, there are three options for withdrawal of MPF funds: installment withdrawal, lump-sum withdrawal, or remaining in the MPF scheme to continue investing.

All three methods require scheme members to submit the completed application form [MPF(S) – W(R)] and required supporting documents to the relevant trustee for processing.

It should be noted that if you propose to the MPF trustee to withdraw funds by installments, the law stipulates that for the first 4 withdrawals per year, the trustee needs to process the installment withdrawals free of charge and cannot charge any fees to the scheme members (but there may be some Reasonable expenses incurred because of investment transactions).

2. Retire early

Scheme members who are aged between 60 and 65 (as calculated by the last day of the year shown on the ID card) and who have terminated all employed and self-employed workers may, by making an oath and statutory declaration, claim early retirement, A statement that you have no intention of being re-employed or self-employed.

After that, the person can apply for withdrawal of MPF accrued benefits and needs to complete the form [MPF(S) – W(R)], [MPF(S) – W(SD1)] together with proof of identity documents to the trustee. Similarly, the extraction penetration method can choose to extract in stages or in one lump sum.

However, once the person wants to be employed again before the age of 65 after withdrawing the MPF, he will need to re-enroll in the MPF scheme and the benefit account will be recalculated.

3. Departure permanently

The Mandatory Provident Fund (MPF) scheme allows members to apply for early access to the Mandatory Provident Fund (MPF) due to immigration. Members are also required to make a statutory declaration stating that they will leave Hong Kong and have no intention of returning to Hong Kong as permanent residents for work or resettlement.

Applicants for this reason are required to attach proof that they have been permitted to reside outside Hong Kong.

Scheme members can only apply for this reason once, and subsequent applications with a later departure date will not be accepted. In addition, there will be legal regulations. Once false or even misleading statements are found, they may be prosecuted by the bureau or the government, and enforcement actions will be taken.

If you return to work in Hong Kong for more than 60 days after successfully withdrawing your Mandatory Provident Fund (MPF), you will need to re-enroll in the Mandatory Provident Fund (MPF) scheme and the benefit account will be recalculated.

4. Complete incapacity

If a scheme member is unfortunately permanently incapacitated and certified by a registered medical practitioner or registered Chinese medicine practitioner that he is no longer suitable for a specific type of work, he can apply for early withdrawal of MPF (MPF) together with the medical certificate and a completed form.

5. Suffering from a terminal illness

If a scheme member, unfortunately, suffers from any illness that reduces his life expectancy to less than 12 months, he can apply for early withdrawal of MPF by completing the form together with a medical certificate issued by a registered medical practitioner or Chinese medicine practitioner.

6. Insufficient small balance

Scheme members have only one MPF scheme and have MPF funds, and if the balance is less than $5,000 within one year from the last contribution date, scheme members may make a statutory declaration that they do not intend to If you are re-employed or self-employed, you can apply for early withdrawal of Mandatory Provident Fund (MPF).

7. Member dies

Once the scheme member dies, the MPF interest will become part of his estate, so this part of the money will have to be claimed by the personal representative, the official administrator.

The above information is for reference only. If you have any questions about the Mandatory Provident Fund (MPF), we welcome your inquiries.