This wasn't an issue in HK when I lived there in 2004.
Hong Kongers are not taxed to death as are most citizens of modern westernized countries. Having no need to pay for their own military defense and almost no
social safety net, in Hong Kong tax is almost non-existent.
Well, when I lived in HK back in 2004, there were simply no taxes to worry about on family savings.
In 2004 there were :
- no capital gains taxes
- no taxes on interest from bank accounts or similar personal investments
- no sales tax (there was gossip of a future VAT when I left)
There was a salaries tax. I think the top bracket was around 10-15%. I think the zero bracket was somewhere around HK$200,000. There was also a property tax. And there was a much higher gas tax than you will find anywhere in the world, but distances are short. It may be that automobiles are also taxed, but the frequent subways, buses and numerous taxis go everywhere you'd care to go.
The MPF was implemented a year or two before I left. The discussion in the press, as I recall, was that people be forced to provide for themselves a minimum retirement savings so as not to rely upon government or charitable support. There is nothing preventing a person from saving more, but the additional amount saved could be in some other account, not subject to the strict withdrawal rules of an MPF account.