Population ageing has necessitated the need for governments in different parts of the world to implement reform in retirement saving policy to lessen reliance on publicly funded retirement benefits.
In addition to voluntary savings encouraged through concessional tax treatment, employment-related compulsory retirement saving schemes are mandated in a number of jurisdictions. While the Australian government legislated the superannuation guarantee (SG) scheme in 1992, nearly a decade later the Hong Kong government implemented the Mandatory Provident Fund (MPF) scheme.
There is a range of choices available within these mandatory schemes, such as the Choice of Fund and Employee Choice Arrangement. Despite given these choices, a large proportion of members appeared to be disengaged with their retirement saving plans. Continual legislative changes to these schemes, complexity in the fees charged, and returns reported are among the various reasons cited for member disengagement.
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