Nelson Kooh is a financial planner of a wealth management company WMC Inc

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Nelson Kooh is a financial planner of a wealth management company WMC Inc. He specializes in retirement planning. Over the years, he has helped many of his clients to plan for their retirement. Recently, WMC recruited a number of fresh graduates who will assist in organizing Mandatory Provident Fund (MPF) seminars for employees. Some graduates made the following statements:

1. ‘It is a waste of money to conduct seminars on retirement planning in local community. An individual either wants to plan for their retirement or does not. There is nothing we can do about it.’

2. ‘I see why we have the MPF policy in Hong Kong. I like the mandatory nature of the MPF scheme because employees can start saving for their retirement when they are young. Other than this, I cannot see any reasons to participate in MPF schemes. Why not simply put the employees’ and employers’ contributions in a bank? Bank deposits are much safer.’

3. ‘An MPF scheme is basically a defined benefit plan. The Hong Kong government guarantees the MPF will not fail. When an employee retires, he/she can collect retirement money from the respective MPF scheme.’

4. ‘My friend has more than one job. One of his employers is so nice to allow him not contributing to any MPF scheme, so he has more disposable income.’

5. ‘My uncle is 55 year old and plans to retire early. He told my father that he has recently applied to withdraw his accrued benefits in his MPF scheme.’

Nelson believes these statements about retirement planning contained misconceptions. Explain.