FSS investments achieved a 6.8% return rate last year

The 2024 Social Security Fund Annual Report revealed that by the end of 2024, the fund’s total assets reached MOP 99.5 billion, with an average investment return rate of approximately 6.78%, generating MOP 6.28 billion, which matched the total expenditures for social security benefits and assistance in the same year.

According to the report, last year’s total revenue reached MOP13.22 billion, primarily sourced from MOP6.18 billion from the Special Administrative Region government, MOP6.28 billion in investment income, nearly MOP380 million in social security contributions from 351,000 employees, and MOP360 million from employment fees for non-resident workers.

The report noted that in 2024, the Social Security Fund’s investment returns showed a positive growth trend, with the fund generating approximately MOP23.65 billion from bank deposits, reflecting its prudent investment strategy.

As global financial markets recovered, the fund’s returns from international investments reached around MOP38.17 billion, driven primarily by economic growth, declining inflation, and interest rate cuts by major central banks. Overall, the total investment returns amounted to approximately MOP61.82 billion, underscoring the fund’s robust financial performance.

In 2024, social security benefits and social assistance expenditures totaled MOP6.28 billion, reflecting an increase of approximately MOP262.2 million from 2023, which corresponds to a growth rate of 4.4%.

Remarkably, expenditures on pensions and disability benefits comprised 99% of the total outlays.

The number of pension beneficiaries reached 153,923, while 12,972 people received disability benefits, for 166,895 beneficiaries. This marks an increase of around 8,376 beneficiaries compared to the previous year, representing a growth rate of 5.3%.

Among the 518,000 beneficiaries enrolled in the social security system, pensions and disability benefits are provided as long-term payments. In 2024, the system received a total of 13,058 pension applications, which reflects a decrease of 2,264 applications compared to 2023, marking a decline of 14.8%.

The total number of applications for allowances reached 15,143, with birth allowances being the most sought-after, indicating a strong demand for support in this area.

The report highlights significant participation in the non-mandatory Central Provident Fund system, with 321 employers involved and 107,802 participants. From those, approximately 31,000 employees participated in the Provident Fund Joint Scheme, while nearly 82,000 individuals were enrolled in the MPF Individual Scheme.

Additionally, a budget surplus of approximately MOP2.92 billion was specially allocated, benefiting 401,790 eligible residents, demonstrating the system’s effectiveness in enhancing retirement security for the community.