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Which provider is better for MPF accounts consolidation? GUM provides professional consultations to help you understand MPF consolidation benefits and choose the best plan. We assist you in making informed decisions regarding MPF consolidation so that you can enjoy the most discounts and convenience.
Must-know Facts for Employees - 5 Myths about MPF Consolidation!
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Myth #1 - What is MPF consolidation?
MPF consolidation refers to the process of integrating multiple MPF accounts into one single unified account. When an employee leaves their job and does not manage their MPF account, the existing contribution account automatically becomes a “Personal Account” and continues to be invested. This means that the employee may end up holding multiple MPF accounts. When the employee starts contributing to MPF again in a new job, they will likely have at least two MPF accounts.
MPF consolidation = The action of combining all MPF accounts into one account
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Myth #2 - When is MPF consolidation necessary?
1. Multiple Accounts: When you have multiple MPF accounts, doing MPF consolidation allows you to merge them into a single account for easier management and tracking.
2. Difficulty in Management: When you receive correspondence from different MPF providers and the number of accounts keeps increasing, it becomes challenging to manage them all. MPF consolidation can help simplify documents and data, making management easier.
3. Unclear about Asset Status: Neglecting MPF accounts for an extended period can result in uncertainty about the total number of accounts, the financial status of each account, and the investments. MPF consolidation can help keep track on your asset status clearly.
How to manage MPF accounts after changing your job?
After changing your job, it is important to manage your MPF accounts effectively with these steps:
1. Update Information: Ensure that you provide your new employer with the correct MPF account details so that they can make contributions according to your instructions.
2. MPF Consolidation: Consider consolidating your previous MPF accounts into your new account to reduce costs. You may need to evaluate which provider is better for MPF consolidation.
3. Fund Selection: Reassess and adjust your investment portfolio based on your investment goals and risk tolerance. Choose funds that align with your objectives.
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Myth #3 - Is MPF consolidation process complicated?
Completing MPF consolidation in three steps!If you are unsure about the number of individual MPF accounts you have or lack detailed information about the MPF providers, you can download the “Personal Account Information Enquiry Form” provided by the Mandatory Provident Fund Schemes Authority (MPFA). Fill out the form and return it along with a copy of your identification document by mail or fax to the MPFA (you can also visit the MPFA in person). The MPFA will inform you the MPF providers you have accounts with but not providing the account numbers. Therefore, after receiving a response from the MPFA, you will need to contact the providers individually to inquire about the account numbers.
Step 1: Identify Scheme Names and Account NumbersTo initiate MPF consolidation, the first step is to gather information about the scheme names and account numbers of all your individual accounts. You can obtain this information through the following methods:
Correspondence from MPF providers, such as annual benefit statements.
orInquire with your MPF providers directly, either by logging into your online MPF account or contacting the provider's customer service.
Step 2: Select Provider and SchemeWithin your existing MPF providers, choose a provider and scheme that you prefer to consolidate all your MPF accounts under. When selecting a provider and scheme, consider factors such as product offerings (scheme and funds), services, fund fees, and other personal considerations. The question of “Which provider is better for MPF consolidation?” will be addressed later in this guide.
Step 3: Fill Out and Submit FormsAfter completing the “Scheme Member's Request for Account Consolidation form”, submit the form to the selected MPF provider. Typically, you will receive a "Transfer Statement" and a "Transfer Confirmation" from both the original and new providers within 2-3 weeks. Carefully review and ensure the accuracy of the information. Once confirmed, the entire MPF consolidation process is completed!
Important Notes on MPF Consolidation:
MPF consolidation or account transfer does not incur any fees.
MPF consolidation involves the buying and selling of funds and the transfer of accrued benefits. During this process, there may be a gap of approximately 1-2 weeks where your investments are temporarily not in the market, providing an opportunity for "selling high and buying low" or "selling low and buying high."
If you have selected "Guaranteed Funds" in the original plan, the transfer of accrued benefits may result in the loss of the related guaranteed return rate.
During MPF consolidation, it is recommended to review your fund selections and ensure they are suitable.
When changing jobs in the future, remember to handle your MPF with the previous employer to avoid creating another individual account.
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#Myth 4: Which provider is better for MPF consolidation?
When it comes to selecting a provider for your MPF consolidation, it is an important decision as the provider will be responsible for managing and investing your MPF funds.
B-36-PThere are five criteria to consider in choosing the provider: market share, fund performance, fund selection, fund management fees, and provider services.
It is crucial not to solely focus on management fees when considering the schemes. Besides considering the level of service provided by the provider, you can also refer to their past performance reports to understand their returns and the variety of fund choices available. However, it's important to note that past investment performance is not an absolute indicator of future performance and should only be considered as part of the overall evaluation.
Many companies currently offer MPF consolidation promotions, so it's advisable to explore and compare the various MPF consolidation offers before deciding which company to consolidate with.
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#Myth 5: What MPF consolidation benefits are available?
When investors decide on a trustee for their MPF consolidation, apart from understanding market share, fund performance, fund selection, fund management fees, and provider services, they can also learn about the MPF consolidation promotions offered by different providers. Customers who choose to consolidate their MPF accounts will receive various benefits and rewards as part of the MPF consolidation promotions.
Additionally, MPF consolidation can provide better investment portfolio choices and professional asset allocation advice to help individuals achieve their long-term financial goals. Through MPF consolidation, customers can also enjoy lower management fees and transaction costs, resulting in cost savings and potentially higher investment returns. Furthermore, the consolidated account can benefit from better interest rates, returns, and more investment opportunities. MPF consolidation can bring convenience and potential advantages to your financial future. Don't miss out on this exclusive opportunity and take action now to enjoy the benefits of MPF consolidation promotions.
Scope of MPF Consolidation PromotionsThe scope of MPF consolidation promotions may vary depending on different MPF service providers and schemes. Generally, MPF consolidation promotions can apply to most MPF accounts, including accounts with personal voluntary contributions, mandatory contributions, and employer contributions. However, specific eligibility criteria may differ based on the rules of the MPF schemes. For example, some plans may limit the number of accounts that can be consolidated or have specific requirements for the consolidation process. Additionally, certain special types of MPF accounts, such as self-selected MPF plans designed for self-employed individuals, may not qualify for MPF consolidation promotionsGUM MPF consultants can provide relevant advice and guidance in knowing whether MPF consolidation promotions are applicable to your MPF accounts. Our professional team will assist you in evaluating the MPF consolidation promotions offered by different providers and schemes, helping you understand the incentives and services provided by different providers during the consolidation process.
Summary of the 5 Myths of MPF Consolidation:
1. MPF consolidation is the process of integrating multiple MPF accounts into one account for easier management of retirement funds.2. The ideal time for MPF consolidation is usually during job transitions or changing employers, aiming to simplify management, reduce costs, and improve investment efficiency.3. The procedure for MPF consolidation is relatively straightforward, requiring the completion of some documentation but overall not complex.4. When choosing a provider for MPF consolidation, factors to consider include service level, fund fees, and past performance, rather than just focusing on management fees.5. The extent of discounts and promotions for MPF consolidation can vary among different schemes. Choosing the most suitable option requires comparing the offers and schemes from different companies.
MPF consolidation is a convenient and beneficial option that simplifies management and reduces costs. However, it's important to consider factors such as the choice of scheme, timing of consolidation, the extent of promotional offers, and the selection of the most suitable plan. If you seek assistance and advice from professionals during the MPF consolidation process, consider consulting with GUM MPF advisors. Our team provides expert guidance and services to help you complete the MPF consolidation process. With our professional guidance, you'll gain a clearer understanding of the consolidation process and relevant regulations. Our advisors possess extensive experience and knowledge to assist you in making informed investment decisions that align with your specific needs and goals.
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