The View | Way to help Hong Kong's elderly poor
Universal handouts are a costly approach to helping elderly poor but city should consider expanding health services and privatising public housing
Public discussions of old age retirement support have always been confusing because they involve two concerns: alleviating poverty and getting votes (or building political support).
In Hong Kong, there are several social transfer schemes to support the elderly poor without means. While one could query their effectiveness and how they could be enhanced, politicians and social advocates have instead demanded a scheme that provides benefits to all, regardless of whether they are poor.
Consider a recent suggestion by Professor Nelson Chow in his study "Future development of retirement protection". This involves the actuarial evaluation of five proposals put forward by politicians and social advocates, plus a sixth proposed by Chow.
Chow's proposal has three objectives. First, to consolidate existing old age support schemes into a single simplified scheme and pay every elderly person a monthly sum of HK$3,000.
Second, to enhance the level of support for the elderly poor - a long-time concern of the good professor for which he is greatly respected by the public.
Third, to provide the same level of support to the middle class and the rich, a much larger group of elderly households.