Transcript Forum for a Networked Government “The Social Divide

How to Enrich Retirement
HKRSA Seminar
INVESTMENT INSTRUMENTS FOR
GROWTH IN
AN AGEING-CONTINUUM
Dr. E K Yeoh
Secretary for Health, Welfare and Food
Hong Kong SAR Government
Outline


Ageing and wellness continuum
Wellness determinants and
investment instruments

Individual investment

Policy instruments
Ageing & Wellness
Continuum
Ageing Continuum

Ageing - a natural part of the life cycle
a lifelong process
part of human developmental process

Life-course approach
Early Life - growth & development
Adult Life - maintain highest possible level of
function
Later Life - maintain independence and prevent
disability
Ageing in Hong Kong

Life expectancy at age 60 in Hong Kong
2001
2011
2021
2031
Male
21.4
22.8
23.8
24.6
Female
26
27.4
28.4
29.1
Wellness Continuum
Continuum of wellness (at any age)
WELL
VULNERABLE
DEPENDENT
Active;
physically and
economically
stable
Low income;
lack of family
support;
chronic illness;
isolation
Physically and
economically
dependent;
loss of selfcare ability
Wellness Determinants &
Investment Instruments
Determinants
Where an individual is on the continuum depends on
Finance
Health
WELLNESS
Personal resources
Social
network
Investment instruments
HEALTH


Physical activity /
exercise
Diet and nutrition
Not smoking
WELL
NESS
Personal
resources
Social Network

Finance
Investment instruments
FINANCE



Health
Work and income
Savings
Financial planning for retirement
WELLNESS
Personal resources
Social
network
Investment instruments
Finance
SOCIAL NETWORK
Health

WELL
NESS


Personal
resources
Good interpersonal
relationship, particularly with
family members
Family and social activities
Social support and
mutual help
Investment instruments
Finance
Health
WELLNESS
Social
network
PERSONAL RESOURCES





Education
Lifelong learning & knowledge-building
Leisure & hobbies
Stress management & relaxation
Self-reflection
Individual Investment
Individual Investment



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Healthy lifestyle
Lifelong learning
Interpersonal relationships
Social activity and leisure pursuit
Financial planning for retirement
Rethinking retirement
RETIREMENT

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Creates old age dependency
Not a natural part of the lifecourse
A social construction
Roots in pension eligibility
Ideal Types of Social Structure
MIDDLE
Work
YOUNG
Education
Leisure
Leisure
Work
OLD
Age Integrated
Education
AGE
Age
Differentiated
Source: M.W. Rilley and J.W. Rilley, Jr. (1994). Structural Lag: Past and Future. In M.W. Riley, R.L.
Kalm and A. Foner (Eds). Age and Structural Lag. New York and Singapre: John Wiley & Sons
Policy Instruments
Active Ageing
“The process of optimizing
opportunities for
health, participation and security
in order to enhance
quality of life as people age”
Three pillars of a policy
framework for Active Ageing
The Service Economy


Over 80% of Hong Kong’s GDP are now
accounted for by the services sector.
A knowledge-based economy could be well
served by an ageing workforce since the
productivity of knowledge workers grows with
age in knowledge-building and wisdom.
Ageing
Workforce
Service
Economy
Policy Instruments

Economic

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Fiscal

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Simple and low taxation
Tax incentives for continuing education
Financial



a business-friendly environment
retain local professionals and attract overseas
talents
MPF for retirement
Products such as annuity, reverse mortgage, etc.
Social
Social Philosophy

The Government sees
its primary role as
helping people to
enhance their ability to
help themselves and
to boost their willpower to do so
Social Policy: 4 Pillars
SOCIAL POLICY
Equality
of
opportunities
Support &
protection of
vulnerable
members
Social
safety net
Community
building
First Pillar –
Equality of opportunities
SOCIAL
POLICY
We will invest in the different domains of
human development of each person,
provide opportunities for each person to
develop his or her potential and enable
every person to participate in and
contribute to economic and social life.
First Pillar –
Equality of opportunities
SOCIAL
POLICY
EDUCATION AND TRAINING

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Education expenditure $61.4 billion in 2002-03
Nine years free basic education
Heavily subsidised tertiary education
Training and retraining infrastructures and
support
Financial assistance

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Skills Upgrading Scheme
Employees Retraining Scheme
Continuing Education Fund (CEF)
Second Pillar - Support &
protection of vulnerable
members


SOCIAL
POLICY
We will fulfill our special social responsibilities to
the disabled, disadvantaged and vulnerable
members of our community, by providing specific
programmes, additional support and targeted
assistance to enable them to develop their potential
and participate fully in community.
Eg. long-term care, family and child welfare, youth
work, rehabilitation services.
Third Pillar –
Social safety net



SOCIAL
POLICY
For individuals who are in need of financial
assistance because of old age, illness, disability,
unemployment and so on, we will ensure that our
social security schemes provide a safety net of
income support to meet their basic needs
Special assistance will be given to elders and the
disabled
Accounts for 11% of government recurrent
expenditure
Fourth Pillar –
Community building


We will strengthen the social
fabric of the community by
fostering mutual care and support,
and building the social networks
necessary for individuals and
families to flourish.
Eg. Community Investment and
Inclusion Fund
SOCIAL
POLICY
Lifecourse approach to
Investment

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Human development
Integrative
Longitudinal
Coordinated
dimensions
Lifecourse approach to
Investment
HEALTH


Health, education,
social services
Government’s
role as enabler
and facilitator
EDUCATION
SOCIAL
SERVICES
Recurrent Public Expenditure
by Policy Area Group in 2002-03
Community & External Affairs
3.4%
Economic
5.5%
Education
22.4%
Environment & Food
Health
4.1%
14.8%
Housing
5.6%
Infrastructure
5.4%
Security
11.3%
Social Welfare
14.6%
Support
12.9%
Joint Effort and Responsibility

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
Investment in the accumulation and
maintenance of human and social capital.
Collective efforts of individuals, family,
communities, and the government; public as
well as private sectors.
Government’s commitment to rationalise,
reorganise and reengineer services for higher
efficiency.
Thank You