Demographic Crisis: Challenges for Retirement Schemes in Hong Kong

HO, K.Y. (2005) Demographic Crisis: Challenges for Retirement Schemes in Hong Kong. [Dissertation (University of Nottingham only)] (Unpublished)

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After the Hong Kong baby boom in the 1950's, the population are now approaching retirement. The Hong Kong Special Administrative government is facing pressure both medical and financial in catering for this aging population. There was lack of retirement protection in Hong Kong before 2000 which recognised it was a real demographic problem. Only one third of the working population was protected by an Occupation Retirement Scheme. Since December 2000, a formal and comprehensive retirement benefit scheme: The Mandatory Provident Fund Scheme (MPF) was launched by the government to cover the majority of working population.

This study aims to examine the extent of people's understanding of the MPF in relation to saving behaviour, investment knowledge, retirement attitudes and demographic factors. The research result indicated that the MPF seems to be ineffective in enhancing a saving culture, because of the low level of MPF and investment knowledge. According to demographic analysis, having a child, homeownership and age has substantial influence on retirement saving. Gender, income level and marital status have limited impacts on it. The level of education has no significance at all.

The concluding section suggests that education and information about the MPF play a critical role in improving understanding and saving with the MPF. It promotes financial inclusion, improves knowledge of risk and investment, offering more investment instruments, so as to enhance the commitment of works and enable them to value the MPF scheme. In future, retirement benefit reform should be incorporated with social security reform, with the cooperation among government, employers, financial institutions and individuals.

Item Type: Dissertation (University of Nottingham only)
Keywords: pension scheme
Depositing User: EP, Services
Date Deposited: 08 Dec 2005
Last Modified: 21 Mar 2022 16:03

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