Question

To encourage Hong Kong residents to retire later, analyse their impacts on the younger generations.(collect relevant facts and data to support your view and analysis)

Answer 1

The most striking feature about the employment scenario in Hong Kong is that there is no default age of retirement in Hong Kong. Employees as well as the employers have that flexibility to decide when to retire , although the general benchmark age for retirement is fixed at 65 for male workers and 60 for female employees. Since December 2000, all those workers irrespective of their status of being self employed or employee or temporary or part time worker , they all are bound to join the Mandatory Provident Fund Scheme (MPF), only id a person remains employed for less than 60 days a year he/she is exempted from this scheme. Employers and employees are directed for paying 5% of their income and allowances (except housing) for that scheme. The same structure is followed for those who are self-employed. Recently an article from South China Morning Post (March 2016) reflected the fact that a bulk of ageing population are working, or seeking for work and as a result creating an unique demand on the public purse, undoubtedly this is a serious issue. Statistics predict that in the next two decades the demographic trend of Hong Kong will be such that, out of 3 persons one will be aged 65 and above.The concern deepens when statisticians provide estimates of about 14% loss of Hong Kong's labour force within the next 50 years. Several public policies have mentioned the idea , that the Government should use this 'silver line ' population as a solution to the arising demographic problems , by placing  them to contribute in the economy.

Thus this can be easily said that this accelerating ageing population, decreasing working population and last but not the least increasing burden of working-age dependency will undoubtedly pressurize the younger generation, their job availability, the government and the overall system.
Ageing is a global phenomenon, and at the same time it is unavoidable. Hong Kong has already turned out to be an ageing market. The Hong Kong Special Administrative Region (HKSAR) Government Demographic Statistics 2016 stated that total population of Hong Kong was close to 7.34 million, of which 17% accounts for the 65 above age group. The Census and Statistics Department (CSD) of the aforesaid government has also predicted that with the declining birth and mortality rates along with increasing life expectancy, the aged group of Hong Kong will increase gradually. The predicted proportion places the above 65 age group accounting for 31% in 2036 .
The demographic dividend of Hong Kong has helped a lot in achieving its strong economic growth in the past years, but now as its population ages, the demographic dividend has turned out to be more of a burden. It has raised various issues which are becoming increasingly problematic over time.


Thus this can be easily said that this accelerating ageing population, decreasing working population and last but not the least increasing burden of working-age dependency will undoubtedly pressurize the younger generation, their job availability, the government and the overall system.