Plan for flat-rate monthly pension for all over-65s is proposed

Everyone would be entitled to a flat-rate monthly pension from the age of 65 under an option being considered by an expert commissioned to lead a year-long government study of retirement proposals.

The proposed scheme, details of which are being worked out by Professor Nelson Chow Wing-sun, would replace the existing old-age allowance and old-age living allowance schemes.

The University of Hong Kong social work professor has hinted that higher taxes may be needed to pay for the pensions.

Chow was commissioned last year to look into various proposals, amid mounting public calls for a universal pension system. He is expected to finish his report next month and submit it to the Commission on Poverty.

The initial plan is for the non-means-tested scheme to provide a monthly amount adequate for a retiree to live "a reasonably acceptable life". It is likely to be more than the HK$2,300 a month old-age living allowance.

"The [proposed universal pension] scheme won't replace comprehensive social security assistance," Chow said. "Even though there is a pension scheme, there will still be some elderly people who need more financial support."