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‘I can only dream’: annuity scheme either not enough or out of reach for many of Hong Kong’s elderly

Some say it is only a ‘gimmick’ with low return prospects, while others say it is unaffordable

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Tse Chin-pang is a 73-year-old retiree. He says despite having money in savings, he would not invest in the government’s annuity scheme. on the annuity scheme to be launched by the middle of next year. Picture shows Tse takes a walk at North Point street market. 11APR17 SCMP/Photo: Felix Wong
Peace Chiu
The Hong Kong government’s HK$10 billion public annuity scheme has received a lukewarm response from the city’s senior citizens, despite promises it will help the elderly “better enjoy the rest of their lives”.

Mak Hon-kai, a retired teacher and president of the Hong Kong Association of Senior Citizens, said while he had more than HK$1 million in savings, the scheme was not attractive.

“You don’t know when you will die,” he said. “It is just another gimmick by the government – like the reverse mortgage scheme and HK$2 transport [concessions] – to mask the fact that there is still no retirement protection for the elderly.”

The Hong Kong government has so much surplus. Why can’t it help the elderly to live with dignity?
Mak Hon-kai

The 78-year-old said the government should instead adopt a non-means-tested universal pension scheme.

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“The Hong Kong government has so much surplus. Why can’t it help the elderly to live with dignity?” he said.

Mak said his biggest expense every month was business meals for the association, which can cost between HK$8,000 and HK$10,000. And if he invested HK$1 million into the government scheme, he would only receive HK$5,800 per month, which does not cover his expenses.

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He criticised the proposed means-tested approach as “hurtful” to the city’s elderly, and compared it to having his children check his bank account before handing him an allowance.

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