Mercer Hong Kong MPF Satisfaction Index

HK MPT Satisfaction Index

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Mercer MPF Satisfaction Index shows positive performance, while satisfaction levels remain static

  • 4 May 2018
  • Hong Kong, Hong Kong
  • One year after its launch, satisfaction remains at around 50
  • MPF performed better in 2017 than in 2016, but satisfaction levels did not improve accordingly
  • Other benefit plans, such as the MPF voluntary contribution scheme and life annuity scheme, would effectively address retirement gap
  • Financial Wellness Education, account consolidation and frequent portfolio reviews are key to improving satisfaction levels

Hong Kong, 4 May 2018 - Mercer, a global consulting leader in advancing health, wealth and careers and a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), released the latest findings of the Mercer Mandatory Provident Fund Satisfaction Index (MPF SI). The monthly index, the first of its kind in measuring the satisfaction levels of Hongkongers towards the MPF system, recorded an average rating of 50.8 over from April 2017 to March 2018.

The index ranged from 47.7 to 53.2, with consistent, ongoing satisfaction levels of around 50. During the same time, the market experienced 27% growth in the Hang Seng Index from April 2017 to March 2018, which failed to translate into a raise in MPF satisfaction levels.

“It is very clear that engagement is the key driver in MPF satisfaction levels,” said Billy Wong, Mercer’s Health & MPF Business Leader, Hong Kong. “We have consistently noticed that MPF members who are more knowledgeable are more satisfied, and same for those who review more or contribute above statutory minimum requirement. We believe that educating the public about MPF voluntary contributions and life annuity schemes will go a long way to addressing the retirement gap. Employers should offer Financial Wellness Education to tackle expectation mismatches and MPF reviews should be conducted.” Mr Wong added.

More financial planning education needed to improve satisfaction

The MPF Satisfaction Index survey results show that member expectation is key in understanding MPF satisfaction. 22% of respondents expect MPF to cover half or more than half of their post-retirement expenses. Interestingly, this group tends to be very satisfied with MPF. Furthermore, out of all the dissatisfied respondents, 71% reported positive MPF returns in the previous year.

“Understanding of MPF as a pillar of retirement protection is inconsistent in Hong Kong,” said Mr Wong. “For this reason, the public’s expectation over the function and performance of MPF are diverging. Members in this sense would still be discontent even if they received a positive return.”

“Employees need more information about the role MPF plays in retirement protection, as well as the other financial products available in the market that can offer them a secure future. We believe employers should actively provide this education to their people, to improve satisfaction levels,” Mr Wong concluded.

Account consolidation and frequent portfolio reviews key to greater satisfaction

The average satisfaction index score for respondents with only one MPF account was 54, higher than respondents with multiple MPF accounts (49.3). These figures show that ease of managing MPF is a key driver in MPF satisfaction.

The survey results also suggest that respondent engagement is positively correlated with satisfaction with the MPF– the higher the knowledge level, the higher review frequency or participation in voluntary contributions, the higher the satisfaction.

However, 30.8% of respondents review their MPF portfolio less than once a year and 6.4% have never reviewed their MPF portfolio. More work needs to be done on educating employees about the importance of regular MPF portfolio reviews to ensure alignment with long-term financial goals.

High awareness of Default Investment Strategy

The Default Investment Strategy (DIS) launched in April 2017 is partly aiming at addressing employee difficulties in making fund choices.  According to the survey, one year after launch, 76% of respondents are “aware of what DIS is”.

“It is best practice for employees to review their MPF portfolios at least once a year. For those who may not want to, or do not know how to choose their own funds, DIS may be a good alternative option,” said Mr Wong.

Mercer helps governments and companies across Asia to meet the retirement needs of citizens and employees by offering research-backed insights and advice. Mercer helps employers with retirement plan benchmarking, plan design, set up and change and communication strategies. Mercer also manages and administers comprehensive Defined Contribution (DC) plans, designs DC plan investment options, manages Defined Benefit (DB) risk, such as asset liability risk and construct portfolios for DB plans and provides actuarial consulting services such as valuation.

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Note to editors

The Mercer MPF SI was conducted by Nielsen to track the satisfaction level of MPF members. The survey interviews more than 2000 respondents per year who are among the working population with MPF and whose monthly personal income is not less than HKD 7,100 (minimum threshold eligible for MPF membership). The survey was conducted through methods of online self-completion (age 20 – 54) and offline street intercept (age 55 or above).

About Mercer

Mercer delivers advice and technology-driven solutions that help organizations meet the health, wealth and career needs of a changing workforce. Mercer’s more than 22,000 employees are based in 44 countries and the firm operates in over 130 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), the leading global professional services firm in the areas of risk, strategy and people. With nearly 65,000 colleagues and annual revenue over $14 billion, Marsh & McLennan helps clients navigate an increasingly dynamic and complex environment. Marsh & McLennan Companies is also the parent company of Marsh,which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions; Guy Carpenter, which develops advanced risk, reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities; and Oliver Wyman, which serves as a critical strategic, economic and brand advisor to private sector and governmental clients. For more information, visit www.mercer.com. Follow Mercer on Twitter @Mercer.

美世強積金滿意指數反映 強積金回報改善但滿意度未見上升

  • 強積金滿意指數推出一年,滿意度仍保持在約50水平
  • 2017年強積金表現較2016年優勝,惟滿意度並未見明顯上升
  • 強積金自願性供款計劃和終身年金計劃等其他福利計劃,可有效縮窄退休儲備缺口
  • 健康財務教育、強積金賬戶合併及經常檢視投資組合是提升滿意度的關鍵

香港,2018年5月4日 - 美世 (Mercer) 是領先全球的健康、財富和職業諮詢機構,屬威達信集團(Marsh & McLennan Companies,紐交所股票代碼:MMC) 的全資子公司。美世公佈美世強積金滿意指數(MPF SI) 的最新調查結果。該每月指數是全港首個調查港人對強積金滿意程度的指標,指數在2017年4月至2018年3月期間(此期間)錄得平均50.8。

強積金滿意指數此期間保持在約50水平,介乎47.7 至53.2。此期間儘管恆生指數增長27%,但強積金滿意度卻沒有相應提升。

美世(香港)健康福利及強積金業務部總經理王玉麟先生表示:「強積金滿意程度的關鍵因素明顯視乎參與度。我們一直留意到,愈了解強積金的成員,強積金滿意程度愈高。他們會經常檢視自己的賬戶,或供款超過法定最低限額。我們認為,教育公眾了解強積金自願性供款和終身年金計劃將會對解決退休差距有莫大幫助。僱主應該提供健康財務教育以解決預期錯配問題,並主動檢視強積金供應商。」

需要更多財務策劃教育來提升滿意度

強積金滿意指數調查結果顯示,僱員的期望是了解滿意度高低的關鍵。22%的受訪者期望強積金可以涵蓋一半或以上的退休開支,有趣的是,這些人趨向對強積金感到非常滿意。另外,在所有感到不滿意的受訪者中,71%的受訪者在過去一年錄得正面的強積金回報。

王玉麟先生表示:「在香港,人們對強積金作為退休保障的重視程度並不一致。因此,公眾對強積金功能和表現的預期產生分歧。即使僱員得到正回報,他們仍然感到不滿意。」

王玉麟先生總結:「僱員需要了解強積金在退休保障當中的作用,以及市場上其他可為未來提供保障的金融產品。我們認為僱主應該積極為僱員提供該類教育,以提升強積金滿意程度。」

賬戶合併和經常檢視強積金投資組合是提升滿意度的關鍵

只有一個強積金賬戶的受訪者錄得平均滿意指數54,較擁有多個強積金賬戶的受訪者為高 (49.3)。這些數字反映管理強積金的方便程度是提升強積金滿意度的關鍵因素。

調查結果亦表明,受訪者參與度與強積金的滿意度呈正比關係。受訪者愈了解強積金,他們會較常檢視賬戶或較多參與自願性供款,滿意程度亦更高。

不過,30.8%的受訪者表示在一年內檢視強積金投資組合少於一次,更有6.4%的受訪者從未檢視其強積金投資組合。因此,就定期評估強積金投資組合的重要性,需花上更多功夫進行教育,以確保強積金回報符合僱員長期財務目標。

對預設投資策略認知度高

香港政府於2017年4月推出預設投資策略(DIS),其目的之一是回應供款人對強積金基金選擇困難的問題。美世強積金滿意指數調查結果顯示,在策略推出一年之後,76%的受訪者表示「了解甚麼是預設投資策略」。

王玉麟先生表示:「僱員宜每年檢視其強積金投資組合最少一次。預設投資策略或可為不希望或不知道如何自行選擇基金的人士提供額外的選擇。」

美世透過提供研究支持的見解及建議,以助亞洲各地政府與企業滿足公民及僱員的退休需要。美世為僱主提供退休計劃基準、計劃設計、設置和變更以及交流策略。此外,美世亦管理及執行綜合界定供款計劃、設計界定供款計劃投資選項、管理界定福利風險(如資產負債風險)及為界定福利計劃構建組合,以及提供估值等精算諮詢服務。

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編輯垂注

美世強積金滿意指數由尼爾森(Nielsen) 進行訪問,以追蹤市民對強積金的滿意程度。調查每年訪問2000多位擁有強積金帳戶、並每月入息不少於港幣7,100元(符合強積金成員供款的最低門檻)的在職人士。調查透過網上自行填寫(20–54歲)及街頭訪問(55歲或以上)方式進行。

關於美世

美世通過諮詢建議和技術驅動的解決方案協助企業滿足其變化不斷的工作團隊的健康、財富和職業發展需求。美世在全球超過 130 多個國家開展業務營運,擁有逾 23,000 名僱員,分佈於 44 個國家。美世是威達信集團(Marsh & McLennan Companies,紐交所代碼:MMC)的全資子公司。威達信集團是一家全球性,提供風險、戰略與人力資本相關專業服務的國際集團公司,在全球擁有將近 65,000 名僱員,年收入逾 140 億美元。威達信集團同時也是達信(Marsh)佳達(Guy Carpenter)、和奧緯(Oliver Wyman)等市場領先公司的母公司。威達信協助客戶應對日益變化和複雜的商業環境。如需更多資訊,請瀏覽 www.mercer.com,或在 Twitter 上關注美世 @Mercer

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