Give more elderly Hongkongers social security benefits to reduce poverty: study

Loosening the eligibility requirements for the government's existing social security benefits programme is the best way to overhaul the city's pension system, an Institute of Education survey has found.

That conclusion is based on the findings of a five-year study of more than 8,000 households, which analysed the cost-effectiveness of three proposals to change the city's retirement protection system.

These included an expanded Comprehensive Social Security Assistance (CSSA) scheme that would benefit 80 per cent of retirement-aged people, compared with the 50 per cent now covered. CSSA is a key government welfare scheme helping low-income groups.

The expansion plan would cost an extra HK$5.3 billion on average per year. But it would lower the poverty rate for Hong Kong's elderly to 19 per cent by 2041 from the current 23 per cent, said Professor Chou Kee-lee. Chou, head of the institute's Department of Asian and Policy Studies, conducted the study.

The proposal would allow residents to apply for benefits on an individual basis, and would do away with the current requirement that relatives provide statements saying they cannot afford to support the applicant.

Chou offered two more proposals, based on his study. One would entitle all people aged at least 65 to receive HK$3,000 in monthly pension payments. The other would raise the existing old-age living allowance payment to HK$3,000 from just HK$2,285.

The average additional costs per year for these two proposals would be higher: HK$30 billion for the universal pension and HK$5.5 billion to raise the existing payments.