Universal retirement protection back on the table as ageing projections bite

This article is a rewrite of a report from August 2012.

Census and Statistics Department figures showed a third of Hong Kong’s population reaching retirement age by 2041: three workers now support one economically inactive person — children plus retirees — but in 30 years they must support two. With ageing that stark, MPF reform and universal retirement protection were back in dispute.

What did the experts say about MPF?

Fix the current system first. A University of Hong Kong population expert said the elderly’s post-retirement quality of life could only be sustained by optimising the existing MPF scheme; the controversial universal retirement scheme needed more study first. “We must carefully calculate whether society can afford an expanding aged population in the decades ahead — otherwise it only burdens the young.”

What did workers want?

A bigger say. An associate director at a financial services firm said employees deserved more say over contribution percentages and provider choice, with plenty of room to improve MPF flexibility for self-directed investment; those 40 and up should consider higher-value-added plans.

What was retirement really like?

Ho Chor, 60, had saved MPF for a decade and feared ending up on Comprehensive Social Security Assistance. “Seeing homeless elderly people, I keep wondering — does a longer life just mean poverty?” A co-director of a university active-ageing institute urged seniors to contribute their skills to the community — some worked as part-time tourist ambassadors in Harbour City or promotional ambassadors for elderly-welfare groups.