Germany maps out clear vision on ageing population as Hong Kong struggles

Brigitte Dersch retired from her engineering job five years ago and, at the age of 70, she says she has little to fear from the future. She enjoys dancing with her friends in the studio of a "creative home" that is funded by the German government to encourage more interaction between the generations.

She lives off a monthly state pension of about €1,200 (HK$12,100) and enjoys socialising at the home while living independently. As well as providing good exercise, it also gives her the chance to do volunteer work, performing at homes for the elderly and sending a positive message to other retirees that elderly people can still be active.

"I enjoy getting an emotional response from the audience and making them happy," she said.

Dersch is enjoying a lifestyle many Hongkongers of her age would envy, spending time with her children and grandchildren in her Berlin neighbourhood. But her generation and the generations to follow are causing a headache for Germany's policymakers - much as Hong Kong's ageing population is worrying its city's government.

But while Hong Kong struggles to come up with a coherent solution to its population worries, Europe's largest economy is setting out a comprehensive plan to cope with a future in which a diminishing pool of workers is supporting a growing number of retirees.

In an attempt to boost the birth rate, parents are being offered subsidised leave - 12 months for a mother, 14 months for the father, available any time after the child's first birthday. They receive 60 per cent of their monthly salary, capped at €1,800.