The $345,000 Figure -- Why It May Not Apply to You
According to market estimates from MPF Ratings, the MPF system delivered roughly a 5.67% return in H1 2026, with the average member gaining about HK$18,500 -- pushing the average account balance close to or briefly above the HK$340,000-350,000 range. This figure has been reported by several Hong Kong financial outlets including Ming Pao Finance, HKEJ and Hong Kong China News Agency. Note that this is a private research firm's market estimate, not an official MPFA-published figure -- your actual balance will vary, and this is for reference only.
The problem is that this "average" spans every MPF member in Hong Kong -- from someone who just entered the workforce to someone approaching retirement. If you are a high earner, using this figure to judge whether you have "enough" for retirement is likely to understate your real gap.
Why High Earners' Gaps Tend to Be Bigger
It is not that you contribute too little -- it is that mandatory MPF contributions are capped. Under current MPFA rules, mandatory contributions are 5% of monthly income, but the "relevant income" ceiling used for the calculation is $30,000 a month, capping the contribution at $1,500 (matched by another $1,500 from your employer -- see our related article: MPF Contribution Cap Could Rise to $2,000 -- What High Earners Need to Know).
In other words: whether you earn $30,000, $80,000 or $150,000 a month, your mandatory contribution is the same -- $1,500. But the lifestyle you want to maintain in retirement usually tracks your pre-retirement income and spending, not this capped figure. The higher your income, the smaller a share of your real retirement need the mandatory contribution covers -- and the bigger your gap becomes.
3 Steps to Find Your Own Retirement Gap
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01
Estimate Your Monthly Retirement Spending
Do not assume the "average" applies to you. Think about the lifestyle you want to maintain -- housing, healthcare, travel, daily expenses -- which usually tracks your current spending level and may not drop much after retirement.
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02
Project Your MPF and Other Retirement Savings at Age 65
Do not just count your MPF balance -- also factor in TVC and other investments and savings. To learn how TVC can help high earners save tax and build more, read: After You Max Out TVC: The Step High Earners Miss.
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03
Subtract to Find Your Real Gap
You can use the MPFA's official Retirement Planning Calculator for a first estimate, then work with a licensed advisor for a personalised portfolio review.
Once You Know Your Gap, What Can You Do?
Calculating the gap is only the first step. Closing it usually comes down to two directions: (1) saving or contributing more -- for example, maximising the $60,000 annual TVC tax deduction; and (2) optimising your existing MPF fund allocation to pursue better long-term returns within a risk level you are comfortable with. Picking funds once and never revisiting them is very different from ongoing monitoring and active adjustment over the long run.
- When did you last review your MPF fund allocation?
- Has your portfolio been adjusted to reflect market conditions?
- Beyond mandatory contributions, are you using TVC or other tools to save more actively?
Sources: MPF average balance and return figures are cited from MPF Ratings market estimates (as reported by Ming Pao Finance, HKEJ and Hong Kong China News Agency, July 2026) -- a private research firm's market estimate, not an official MPFA-published figure; actual balances vary. Mandatory contribution cap ($30,000 relevant income / $1,500 contribution) is cited from current MPFA rules. Official MPFA Retirement Planning Calculator: mpfa.org.hk/calculator. This article is general education content, not personalised investment advice -- please consult a licensed advisor for actual retirement planning.