Universal pension costs a fortune: $4,000 a month means $44.2 billion a year

On 6 March, universal-pension campaigners blocked roads in Central. When a radio host questioned the scheme’s sustainability, champion Lee Cheuk-yan retorted defiantly: “At least we can enjoy it for twenty years!” — the attitude critics find most dangerous.

What would universal retirement protection cost?

Paying $4,000 a month to 920,000 elderly aged 65+ would cost an extra $44.2 billion a year — enough to build an express rail link every 1.5 years. By 2024, the elderly share rises from 13% to 21%, pushing the extra bill past $80 billion — while the columnist, not yet 50, wouldn’t qualify for a cent.

Why oppose it?

Critics argue campaigners not only take taxpayer support as their due, but demand taxpayers support other people’s parents too; those who can’t support themselves will ultimately send the bill to the rest of us. After the 85,000 housing saga, the dot-com bust and SARS, activism backed by its cheerleaders is driving responsible young people away — leaving politicians who chant “twenty years for us” while calling others short-sighted.

Fiscal sustainability is the heart of the universal-pension debate. For how the current MPF system is designed, visit the MPF education hub.