The head of the Mandatory Provident Fund Schemes Authority (MPFA) on Sunday urged Hong Kong workers to make voluntary contributions to their pension pots to boost their retirement savings.

Writing on her official blog, MPFA chairwoman Ayesha Lau said the sooner and longer someone contributes, the stronger the snowball effect.

She said for example, if a worker starts making a monthly tax-deductible voluntary contribution of HK$1,500 at age 22, their MPF fund would be worth around HK$1.8 million when they retire at 65.

However, if they start at 40 years old, their total fund would only be around HK$720,000, she said.

Since the launch of tax-deductible voluntary contributions in 2019, the number of such accounts has reached 70,000, Lau added.

The MPFA chair also noted that the government has proposed legislation to increase tax deductions for voluntary MPF contributions made by employers for staff aged 65 and above – from the current 100 percent to 200 percent.

"This measure will help increase the retirement savings of the elderly and unleash more labour force for the society. It is a win-win solution for employees, employers and the society," she wrote.