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Elderly Aid Complies
with International Standards
Hong Kong’s Information Services Department
Hong Kong
April 26, 2006
The Health, Welfare & Food Bureau says the current approach Hong Kong adopts in providing financial assistance to the elderly takes into account retirement protection advocated by the World Bank.
The bureau today said it attaches importance to the welfare of retirees and elders, adding it has been providing financial security through the social security system.
In response to the recent calls for a universal old-age pension scheme, the bureau said the universal pension schemes operating under a pay-as-you-go system in western countries have begun to experience financial problems.
It is even more difficult for such a system to be sustained in the face of an ageing population and a shrinking pool of contributors, it noted, adding that a personal pension account system, such as the Mandatory Provident Fund scheme, has gained general recognition in the international community.
If the proposed universal old age pension scheme is introduced, the amount payable to retirees under the MPF Scheme will be significantly affected, as the proposal suggests that half the payments originally belonging to MPF members be set aside for the establishment of a universal pension fund, which is tantamount to pooling half of the MPF contributions for public distribution.
Urging people to cherish traditional family values, the bureau said residents should not shift the responsibility of supporting the elderly to the community.
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