Elderly Commission to study universal retirement protection, aims to launch thematic research within two years

The Elderly Commission hopes to launch a thematic study on universal retirement protection within two years and says the government should hold public consultation on it. Secretary for Labour and Welfare Matthew Cheung said the Central Policy Unit is conducting retirement-protection research, which the government will support to improve the system.

What does the universal pension proposal involve?

The Alliance for Universal Pensions proposes combining current fruit-money and CSSA spending with half of MPF contributions, plus a HK$50 billion government injection, to guarantee every elderly person HK$3,000 a month for 50 years. Organiser Au Yeung Kwun-tung said existing elderly CSSA, fruit money and MPF inadequately protect low-income retirees.

How have officials responded?

Elderly Commission chairman Chan Cheung-ming said the government should consult the public on universal retirement protection, while conceding that changing the system could affect the CSSA regime and face considerable internal resistance. Cheung said the Central Policy Unit is deepening its study of whether the three pillars — the CSSA safety net, MPF and personal savings — remain sustainable long term, and the government will cooperate.

What role does MPF play among the three pillars?

MPF is one of the three pillars, but it alone is not enough. Workers should understand MPF’s place in retirement protection and review their MPF fund choices to prepare for retirement on multiple fronts.