Betty Chan - 2014 Symposium on Financial Education in Korea

Publicity and Education Programmes of MPFA

Betty ChanHead (External Affairs)

Mandatory Provident Fund Schemes Authorityhttp://www.mpfa.org.hk

High-level Global Symposium on Financial Education26-27 February 2014, Seoul, Korea

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(I) Background of the Mandatory Provident Fund (MPF) System & MPFA

(II) Audience of MPFA Public Education Programmes

(III) Strategy

(IV) Showcases

(V ) Means to Measure Programme Effectiveness

(VI) Challenges

(VII) Lessons Learnt

Outline

(I) Background of the Mandatory Provident Fund

(MPF) System & MPFA

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• The MPF System was established in 2000.• A mandatory, privately managed, fully funded

contribution scheme.• To provide retirement protection to Hong

Kong workforce aged 18 to 64.• Employees and employers shall each

contribute 5% of the monthly relevant income of the employees

Background

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Dual Role of MPFA

MPFA as a statutory regulator

MPFA as the driver of a social programme

To regulate MPF schemes and MPF funds; and To supervise MPF

trustees and MPF intermediaries.

To enhance different

stakeholders’ understanding of the MPF System; and

To solicit stakeholders’ buy-in.

(II) Audience of MPFA Public Education Programmes

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Two Major Categories

1. Existing membersa) Laymenb) Keen-to-know

2. Future members

15-248%

25-3427%

35-4426%

45-5426%

≧5514%

Primary and below13%

Secondary (Junior Forms)14%

Secondary (Senior Forms)40%

Tertiary education33%

Percentage distribution of employees by age group Percentage distribution of employees by educational attainment

(III) Strategy

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• 1999-2005: Features of the MPF System

• Late 2005-2007: To aware and take good care of their MPF investment

• 2007 onwards: Features and relative risk levels of MPF fund

• 2009 onwards: To make informed decisions in the lifelong MPF investment journey

• 2013 onwards: To publicize proactive attitude in managing MPF investment and to enhance the image of the MPFA

Progressive Approach

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Laymen Keen-to-know Members

Through programmes

in mass media and e-platforms

Presentation with graphic and minimal text

Through customized

programmes Face-to-face contact

with detailed information

Segmented Programmes

1. Laymen vs. Keen-to-know Members

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• To encourage youngsters to cultivate a good habit of saving for the future.

• To educate different age groups of youth on the merits of the MPF System, the compounding effect of savings and the importance of early planning for retirement.

• School programmes and e-platforms

Segmented Programmes

2. Youth

(IV) Showcase: MPF JJ Five Band

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MPF JJ Five Band

• To highlight the key features, relative risk and return levels of the five major types of MPF funds in a lively and interesting manner

(IV) Showcase: Lifelong MPF Investment Journey

• Theme: Making Informed Decision for Your MPF Life

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Lifelong MPF Investment Journey

(IV) Showcase: MPF Investment Education

Comic Strips

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MPF Investment Education Comic Strips

Out-of-home Media Internet Portal

Facebook Game

Souvenirs

(IV) Showcase: “MPFA TV” Channel on YouTube

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“MPFA TV” Channel on YouTube

Online Game

Out-of-home Media Internet Portal

Video on Default Fund

(IV) Showcase: Youth Education

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• Students of Tertiary Institution 3D-animation training programme

Youth Education

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• Secondary School Students Online learning platform Interactive drama Teaching kit for teachers Teachers’ training workshops

• Kindergarten and Primary School Students Story books Teaching kit for teachers and parents Parenting programmes

Youth Education

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• Initiatives on Online Social Media Facebook fan page “Rolling My Money” Smartphone application

Youth Education

Facebook Fan PageSmartphone App

(V) Means to Measure Programme Effectiveness

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Means to Measure Programme Effectiveness

• Survey on participants’ views on public education outreaching activities

• Survey on members’ MPF investment knowledge

• Focus Group Study on Youth Programmes

• Public Opinion Survey

(VI) Challenges

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Challenges

• Scheme members’ inertia to learn more about their investment: A “mandatory” system Negative perception of the system Retirement is considered too remote Monthly contribution amount is relatively small

• Prefer “investment advice/tips” to “investment education messages”

• “Stock trading” mindset

(VII) Lessons Learnt

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Lessons Learnt

• Segmented approach to address different information needs

• Involve famous financial market commentators, artistes and comic icons to catch public attention

• Use of e-platforms and online social media• Use prizes to stimulate public interest• To publicize the merits of the MPF System• To enhance MPF and MPFA image to solicit buy-in• Investment education is an enduring battle

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Thank You