Hong Kong vs. Singapore: Retirement Plans

[SNAblog]

http://blogs.wsj.com/hong-kong/2010/12/08/hong-kong-vs-singapore-retirement-plans/

Below is a comparison of Hong Kong and Singapore’s retirement plans.

Hong Kong’s Mandatory Provident Fund
Established: 2000
Coverage for: Full-time and part-time employees in Hong Kong aged 18 to 65
Contributions: 5% of income, capped at HK$1,000 per month, 100% matched by employer
Taxed: Gains taxed up to 15%
Fees: On average 1.1% to 2.4% of net asset value
Age one can withdraw: 65
Average Hong Kong life expectancy: 81.86
Minimum balance upon withdrawal: none

Singapore’s Central Provident Fund
Established: 1955
Coverage for: All temporary, part-time and full time employees who are Singaporean citizens and permanent residents
Contributions: 5% to 20% of employees’ income. Employers match 5.5% to 15% of income. Rates are set by the government, varying depending on the age of the employee.
Taxed: Profits and earned interest untaxed. Dividends taxed at individual tax rate, which rangeS from 0% to 20% based on income.
Fees: Variable from 0% to 6% of net asset value
Age one can withdraw: 55
Average Singapore life expectancy: 81.98 years
Minimum balance upon withdrawal: 123,000 Singaporean dollars (US$93,456)

Source: MPF Schemes Authority, Central Provident Fund Board, World Bank, Mercer, ipac Financial Planning

 

[eErotica69]

You very misleading hor!!! Quoting you:

"HK : Contributions: 5% of income, capped at HK$1,000 per month, 100% matched by employer"

"Singapore : Contributions: 5% to 20% of employees’ income. Employers match 5.5% to 15% of income"


Anybody can tell what's the difference above?

You don't need to be a mathematician to tell why are the figures so misleading

:p

 

[Goh Meng Seng]

There is something missing here.

In HK, you can decide how many percentage of the MPF you want to put in different portfolio graded by risk assessment. There are at least 3 types of risk portfolio.

This is for MPF account holders to decide their investment strategy according to their own risk liking/portfolio.

Goh Meng Seng

 

[johnny333]

What's the point of having savings when you can't take it out

The PAP keeps changing the rules as to when you can't withdraw your own money.

 

[giggity_shit]

You very misleading hor!!! Quoting you:

"HK : Contributions: 5% of income, capped at HK$1,000 per month, 100% matched by employer"

"Singapore : Contributions: 5% to 20% of employees’ income. Employers match 5.5% to 15% of income"


Anybody can tell what's the difference above?

You don't need to be a mathematician to tell why are the figures so misleading

:p

One is a percentage of contribution amount and the other is a percentage of income (capped at $4500 of course).

So if you earn $4500 in Singapore, employer must give you $675 every month

If you earn the equivalent in HK (26,586HKD), employer max can give you 1000HKD ($170 SGD)

 

[SNAblog]

You very misleading hor!!! Quoting you:

"HK : Contributions: 5% of income, capped at HK$1,000 per month, 100% matched by employer"

"Singapore : Contributions: 5% to 20% of employees’ income. Employers match 5.5% to 15% of income"


Anybody can tell what's the difference above?

You don't need to be a mathematician to tell why are the figures so misleading

:p

The comparison is in the article. You may click on the link provided to read it yourself.

 

[exSINgaporean]

There is something missing here.

In HK, you can decide how many percentage of the MPF you want to put in different portfolio graded by risk assessment. There are at least 3 types of risk portfolio.

This is for MPF account holders to decide their investment strategy according to their own risk liking/portfolio.

Goh Meng Seng

There is ONE big difference that the propectus does not tell.....................................TRANSPARENCY.

HK 100%
SIN -100%

 

[tanwahtiu]

What's the point of having savings when you can't take it out

The PAP keeps changing the rules as to when you can't withdraw your own money.

Sinkies boh lam par to protest and now lan lan no money from CPF. How many times must they keep on quietly to allow LKY to step on them all over again.

 

[Char_Azn]

There is ONE big difference that the propectus does not tell.....................................TRANSPARENCY.

HK 100%
SIN -100%

There's a HKD$1000 cap on this. giggity made a very good point

One is a percentage of contribution amount and the other is a percentage of income (capped at $4500 of course).

So if you earn $4500 in Singapore, employer must give you $675 every month

If you earn the equivalent in HK (26,586HKD), employer max can give you 1000HKD ($170 SGD)

Basically if the CPF adopt the same system and cap, U'll will be screwed