LettersShould Hong Kong raise the retirement age? The answer may lie in flexible arrangements

Name: Jobless struggle to make ends meet in Hong Kong as city battles coronavirus and recession
Uploaded: 2020-09-19T23:40:17.000Z
Duration: 4 min 53 s
Description: Jobless struggle to make ends meet in Hong Kong as city battles coronavirus and recession

The business sector could vary the retirement age according to the ground reality so that promotion opportunities for young people are not limited while companies have the flexibility to retain experienced talent

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Pedestrians in face masks cross a road in Central on June 29. As Hong Kong’s population ages, it will see its labour force shrink. Photo: Winson Wong

Letters

Published: 7:40am, 20 Sep 2020Updated: 7:40am, 20 Sep 2020

According to the Hong Kong government’s latest projections, the city’s labour force is expected to shrink from 3.68 million in 2022 to 3.51 million in 2031. The figure will stay relatively low, at around 3.5 million, until 2038, before falling further. This implies that in around 20 years, as Hong Kong’s population continues to age, we will see our labour force seriously depleted. This will in turn reduce Hong Kong’s overall productivity and hinder economic growth.

Currently, Hong Kong civil servants generally retire at the age of 65. Although there is no statutory retirement age in the business sector, people generally retire at the age of 60.

Some argue that postponing the retirement age would effectively maintain, or even increase, the labour force in Hong Kong, and help preserve Hong Kong’s productivity and economic development in the long run. Hong Kong is a knowledge-based economy, and knowledge is the province of adults rather than infants.

Given the workforce’s higher skill and education level, the business sector should expect more mental, rather than, physical work from employees. Consequently, even if workers aged 60 and above are physically weaker, they can still contribute mentally, especially given the knowledge and experience they have accumulated over the years.

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Jobless struggle to make ends meet in Hong Kong as city battles coronavirus and recession

However, others believe that postponing the retirement age could hinder the upward mobility of young people. This could then lead to tension between the two generations and eventually destroy social harmony.