New Retirement Plans Run into Opposition

The Standard 

October 17, 2011

Hong Kong

Central Policy Unit head Lau Siu-kai said yesterday it's difficult to come up with a retirement protection scheme as some citizens don't see why they should have to set aside their money to subsidize the retirement of others.

However, he agreed the government could strengthen the current welfare plans to help the less fortunate.

Lau made the comments after Legislative Council welfare panel chairman Cheung Kwok-che urged the government to implement a universal retirement protection scheme

Speaking at the RTHK City Forum, Cheung said the social security system, the Mandatory Provident Fund scheme, and citizens' personal savings don't provide sufficient protection for them when they can no longer work.

"The monthly HK$1,035 fruit money is not enough. Even so, some elderly [citizens] do not want to apply for the Social Security Allowance," Cheung said.
"In 2030, one in four people will be aged 65 or above. If we do not think about the universal retirement protection scheme now, when should we take action?"

He said the returns from the MPF scheme are poor because of high administrative fees. But Lau said it is difficult to reach a consensus on a scheme as not all citizens are willing to use their money to subsidize the retirement of others.

"Many Hong Kong people, especially the middle class, think each person should be responsible for his or her retirement, in a sense individual saving instead of pooling their money."