Study envisages people paying into proposed savings plan in their 20s
The government will make a case next week for people to join the controversial old-age medical savings plan while they are in their 20s.
A study will be presented to legislators on Monday showing that 90 per cent of people who join the Health Protection Account in their 20s will be covered for life, and have a healthy cash surplus. That compares with little more than 20 per cent of those who join after the age of 50.
Those estimates are contained in a feasibility study on the plan, prepared by the Legislative Council panel on health services since the scheme was put up for public discussion in December 2000.
The government had earlier proposed that people start contributing in their 40s. Under the proposed plan, contributors would, upon reaching 65, use the savings to pay their medical expenses.
The study shows that 90.3 per cent of people who start contributing in their 20s, as well as having their medical costs in public hospitals met for their entire retired life, will have an average surplus of $192,200. The remaining 9.7 per cent of people will see their cover run out at the age of 86.
Of those who join in their 30s, 81.8 per cent would enjoy cover for life and an average surplus of $130,900, while the remainder would be covered to the age of 84.
