Policy Address

IX. Retirement Protection and Population Policy

Retirement Protection

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 system.

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.

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