New HK$10 billion public annuity scheme can be expanded if popular, Chief Executive CY Leung says

City’s leader also planning visit to Pearl River Delta to seek views on ‘bay area’ plan

PUBLISHED : Tuesday, 11 April, 2017, 11:04am
UPDATED : Tuesday, 11 April, 2017, 11:04am

The city’s new HK$10 billion public annuity scheme can be expanded if it proves popular, according to Chief Executive Leung Chun-ying.

“The initial response to the scheme was positive, according to our assessment,” Leung said before attending the Executive Council meeting on Tuesday morning.

The government announced on Monday that the Hong Kong Mortgage Corporation would launch in the middle of next year a HK$10 billion public annuity scheme under which retirees will be able to invest a lump in exchange for a guaranteed monthly income until death.

HK$10 billion annuity plan will guarantee monthly payout for Hong Kong retirees

People aged 65 and above will be allowed to invest between HK$50,000 and HK$1 million. With the amount earmarked, the corporation could accept 10,000 retirees each putting in HK$1 million or up to 200,000 retirees each paying in the minimum amount.

“The initiative reflects the government’s focus on the elderly’s needs and tackling poverty,” the outgoing leader said.

Leung also said he would next week lead a delegation to visit the nine cities in the Pearl River Delta to exchange views on the state’s blueprint to develop Hong Kong, Macau and those cities into a “bay area”, a plan announced by Premier Li Keqiang in his annual work report last month.

The National Reform and Development Commission will complete the planning by October, so the Hong Kong government is expected to submit its views by June, Leung said.