Members’ Motion: “Addressing the retirement needs of the middle class and building a high-quality health and wellness ecosystem”
Thank you, President. I would like to thank Mr CHAN Pui-leung for proposing the motion. The middle class is an important pillar of Hong Kong’s society and economy, and has made significant contributions to maintaining social stability and prosperity. However, some retired middle-class people are mainly relying on their savings to make ends meet. Apart from the Old Age Allowance, they are not eligible for other means-tested benefits, such as the Old Age Living Allowance and cash benefits. Therefore, while considering the overall social welfare, the Government should also pay attention to the quality of life of middle-class elderly people, ensuring that they can receive appropriate protection and enjoy life in their twilight years.
Amid the dual trends of population ageing and increasing longevity, sound financial planning for retirement has become one of the key elements in building a high-quality health and wellness ecosystem. Although middle-class people earn decent incomes during their working lives, Hong Kong’s retirement system places greater emphasis on personal responsibility than regions like Singapore and Taiwan, which offer universal coverage. If they do not plan ahead for post-retirement financial arrangements and rely solely on savings, the Mandatory Provident Fund (“MPF”) and limited government benefits, it may be difficult for them to maintain their original standard of living in the long run.
The Government should continue to strengthen financial education, enhance public awareness of long-term wealth management tools, and adopt diversified investment strategies to provide protection for retirement. Currently, among the “Retire 3” operated by The Hong Kong Mortgage Corporation Limited, annuities can provide very stable returns because the guaranteed return of annuities is linked to the investment performance of the Exchange Fund. However, like reverse mortgage products, annuities are not widely recognized by the public, leaving significant room for publicity and promotion. Product options should also be continuously optimized. At the same time, existing tax concessions and other incentive schemes should be further enhanced to encourage the public to make more voluntary MPF contributions and take out voluntary health insurance.
Retirement for the middle class is not just about meeting basic needs but also about pursuing physical and mental well-being as well as social participation. However, Hong Kong currently lacks the concept of high-end retirement communities. Existing elderly care services are highly homogenized, causing the middle-income class to face the predicament of “being unable to access ideal elderly care services despite having the money to do so”. While the Hong Kong Housing Society offers a residential care home for the elderly called the Joyous Circle, similar high-quality retirement options remain scarce in Hong Kong. In contrast, the Mainland has developed a mature model known as “Continuing Care Retirement Community”, as seen in Shanghai’s “Taikang Community”, which integrates healthcare, cultural and recreational activities, social engagement and smart technology to provide comprehensive life solutions for the elderly.
The Government started to promote the Senior Citizen Residences Scheme in 2000, aiming to provide residence integrating housing, recreation and basic healthcare services under one roof for middle-income people aged 60 or above. This scheme was considered a pioneer in providing housing for the elderly in Hong Kong. While setting an example, the Government should also consider offering incentives such as land premium concessions and bonus plot ratio to encourage more private developers to invest in high-quality housing for the elderly. At the same time, the Government should take the lead in bringing together insurance companies, medical groups and other organizations from different sectors to create an integrated community offering housing, health management and wealth planning, so as to meet the various needs of middle-class elderly people.
In recent years, the trend of going north for retirement has become a hot topic, with some even saying that “the happiest people in Shenzhen are not the high-earning tech elites but the Hong Kong people who cross the boundary to spend their old age”. Given the rapid development of elderly care services in the Greater Bay Area, such as the implementation of a pilot programme for standardization of cross-boundary elderly care services in Nansha, Guangdong Province, Hong Kong should actively seize the opportunities. It is commendable that the Chief Executive proposed in last year’s Policy Address the enhancement of the Residential Care Services Scheme in Guangdong to provide more choices and support for elderly persons who opt to stay in residential care homes in the province. It is believed that this can provide some cost-effective retirement options for middle-class people in Hong Kong.
However, the core challenge of going north for retirement lies in providing healthcare support. The middle class generally values high-end healthcare services. If cross-boundary healthcare services are not provided at a comparable standard, their willingness to go north will diminish. The Government should optimize the mechanism for sharing medical records between Guangdong and Hong Kong, expand the scope of medical insurance to cover cross-boundary services and streamline procedures for transferring emergent medical cases back to Hong Kong, thereby making cross-boundary retirement a high-quality option.
President, Hong Kong should build a high-quality, people-oriented health and wellness ecosystem characterized by diversity and inclusiveness. This would provide middle-class elderly people with affordable, flexible and sustainable living solutions. I support the original motion and all the amendments.
I so submit.