IX. Retirement Protection and
185. Elderly persons have diverse retirement needs. Some
have to rely on social security; others may only require some
living allowances; the rest are self-sufficient. Hence, for
retirement protection, there is no one-size-fits–all approach. A
flat-rate payment by the Government to all elderly persons
irrespective of financial means will only dilute the support
available to those in need.
Reinforcing the Multi-pillar System
186. In 20 years, one-third of Hong Kong’s population will be
aged 65 or above. Moreover, with longer life expectancies, Hong
Kong people’s retirement life can be as long as 20 to 30 years. As
such, the community needs to be well prepared for retirement
protection. After consulting the public, we consider the existing
multi-pillar retirement protection system should continue. At the
same time, we should enhance the effectiveness of each pillar
while maintaining the sustainability and financial viability of the
187. First, the pillar of the Mandatory Provident Fund (MPF)
should be enhanced to maximise the protection for employees.
Second, the pillar of social security should be strengthened to
perform well the function of a safety net. Third, assistance
should be rendered to the elderly to meet their medical expenses.
Fourth, financial products should be developed to help the
elderly make good use of their assets to increase the stability of
their post-retirement investment income.