There is widespread support for universal pensions in Hong Kong. Disturbingly, however, there is no agreement on what a “universal pension” might be. My definition of “universal pension” is a flat benefit that goes to every elderly person, regardless of assets, income or history of contributions. This is the universal pension recommended more than a year ago in a government-commissioned report.
An op-ed today, in Hong Kong’s English-language newspaper of record, recommends something different: a “universal” system that is contributory, with some sort of top-up or minimum pension guarantee for those with insufficient contributions to qualify for an adequate pension. At present Hong Kong’s Mandatory Provident Fund (MPF) provides workers a lump sum (return of contributions with interest), but no pension, once they reach retirement age. Almost no-one in Hong Kong retires with an income- or contribution-related pension.
Christine Fang says it
Tags: China