Leaving Hong Kong - withdrawing MPF - HSBC Denied

[superpilot]

See Early Withdrawal of Benefits

So if you withdraw early because of permanent departure from HK does that affect your PR status?

[Claire ex-ax]

So if you withdraw early because of permanent departure from HK does that affect your PR status?

Only if you are not a Chinese citizen and you don't return for a visit every 36 months. Then your PR will change from ROA to RTL.

[joan_fortuna]

Just bear in mind one point: I heard from a friend who was caught in this situation, that if you apply for this, you will never be able to get again an MPF scheme in HK even if you decide to return later... It is a one-time only, so even if some day in the future you decide to return to HK to work, you will not be granted any MPF as you have already used your only chance and redeemed it.
If your plans are that some day you may want to return to work in HK with MPF scheme available, not to redeem the earnings now, just keep them as they are. And only redeem it in the case that you are a 100% sure you will not return here to work.

[Claire ex-ax]

Just bear in mind one point: I heard from a friend who was caught in this situation, that if you apply for this, you will never be able to get again an MPF scheme in HK even if you decide to return later... It is a one-time only, so even if some day in the future you decide to return to HK to work, you will not be granted any MPF as you have already used your only chance and redeemed it.
If your plans are that some day you may want to return to work in HK with MPF scheme available, not to redeem the earnings now, just keep them as they are. And only redeem it in the case that you are a 100% sure you will not return here to work.

You can only REDEEM early once. Any proof other than hearsay that a new MPF account is not possible upon return?

[Drunken Master]

Just bear in mind one point: I heard from a friend who was caught in this situation, that if you apply for this, you will never be able to get again an MPF scheme in HK even if you decide to return later... It is a one-time only, so even if some day in the future you decide to return to HK to work, you will not be granted any MPF as you have already used your only chance and redeemed it.
If your plans are that some day you may want to return to work in HK with MPF scheme available, not to redeem the earnings now, just keep them as they are. And only redeem it in the case that you are a 100% sure you will not return here to work.

You can only redeem one time. If you decide to return to HK in future you could still get MPF but can't redeem anymore before retirement.

[vmlinuz]

You can only REDEEM early once. Any proof other than hearsay that a new MPF account is not possible upon return?

It was a while ago - but I have redeemed once, and been enrolled in a new scheme since then...

[jrkob]

It was a while ago - but I have redeemed once, and been enrolled in a new scheme since then...

Same here. Redeemed in 2005, and re-enrolled in 2012 with no issue.

[HK_Katherine]

Why not just leave it here? Retirement savings are important. MPF might not be the best vehicle in the world but still better than spending it.

[Skierx]

Is there any penalty to withdrawing early, tax or otherwise? Also, I know that the MPF has fees that are quite high, but other than an immediate need of cash, why would anyone withdraw early? Wouldn't the long term gains of 30+ years eventually make up for the fees?

[Claire ex-ax]

Is there any penalty to withdrawing early, tax or otherwise? Also, I know that the MPF has fees that are quite high, but other than an immediate need of cash, why would anyone withdraw early? Wouldn't the long term gains of 30+ years eventually make up for the fees?

No tax concerns with MPF. Early withdrawal is only permitted under a few circumstances, e.g. leaving Hong Kong forever, terminal illness, total incapacity. It's not permitted on a 'whim' or a 'want'.