The Wall Street Journal, 8 Dec 2010
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)
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