Hong Kong’s retiring monetary chief Norman Chan backs annuity scheme launched under his leadership last year
- Norman Chan Tak-lam was appointed as the HKMA’s second chief executive in 2009
- Introduced eight rounds of mortgage tightening to cool the city’s property market after the global financial crisis in 2009
Outgoing Hong Kong Monetary Authority chief executive Norman Chan Tak-lam will invest in the government public annuity scheme managed by the de facto central bank.
“I could not think of any other retirement scheme than the public annuity, which can give a guaranteed monthly payment for a retiree to have a decent life, and there’s no need to worry about the highly volatile market risks and longevity,” Chan said at a press conference on his last day in office on Monday.
He begins his retirement from Tuesday after 10 years as the head of the HKMA.
In July last year, Chan successfully oversaw the introduction of Hong Kong Mortgage Corporation’s life annuity scheme. The scheme, which falls under HKMA’s purview, allows any Hongkonger aged 65 or above to invest up to HK$3 million (US$382,600) each and receive a monthly payment guaranteed for life. Men receive HK$5,800 for every HK$1 million invested while women get a slightly lower amount of HK$5,300, as they tend to live longer than men.
The scheme was launched with an eye to the city’s rapidly ageing population, but got off to a slow start amid complaints about inflexibility, leading to some adjustments to its structure.
Chan studied sociology at university before becoming a civil servant, helping to set up the HKMA in 1993 and acted as its deputy’s head. In April 2005, he left the HKMA for briefly and served for two years as the Asia vice-chairman of Standard Chartered Bank up to 2007.