The government should save a proportion of its budget surplus every year and distribute it to elderly people, the head of Mandatory Provident Fund Schemes Authority says.
Speaking in a personal capacity, authority chairwoman Anna Wu Hung-yuk said yesterday the government should allocate a part of its budget surplus to a central retirement fund. When the amount reached a target, it should distribute money to people aged 65 or above.
'Hong Kong rarely sees a budget deficit. It is possible that [the government] can put some of its budget surplus, when there is a surplus, into the fund,' said Wu, also an Executive Council member and one of Hong Kong's most powerful political figures.
She did not suggest how much and how often the government should distribute the pension, but meant it to be carried out regularly.
At the end of last year, Wu said demand for a universal pension system in Hong Kong had become very strong in recent years. But she had previously admitted the present scheme might prove inadequate for many people going into retirement
To lay the groundwork for an improved retirement scheme, every citizen should set up an account that was registered with the government, Wu suggested.
The accounts would serve as a distribution channel for government welfare initiatives. People could receive medical, education and retirement benefits from the government in the accounts.
