The Secretary for Labour and Welfare Law Chi-kwong published a blog on Sunday (November 28) stating that the population of Hong Kong over the age of one hundred will increase to 40,610 by 2055. He called for annuities to increase retirement protection, which has attracted criticism from high-income earners.
He published a blog post today (5th) and retorted that he checked all the articles he had written, including the documents submitted to the government in 2015 and 2016 to establish a public annuity. The focus is on how to help low-income to middle-income students. In the retirement life of income earners, there is no mention of high income earners at all.
He also pointed out that since the MPF has only been established for 25 years, it is not considered mature, it will be considered more mature until 2040, and that a person with a monthly income of 18,000 yuan, which is close to the median income of Hong Kong, and the latest strong Calculating the net internal return of the MPF at a rate of 2.8%, his contributions have been accumulated over 40 years of about 1.58 million yuan. He still needs to cooperate with the annuity and the elderly living allowance to meet the needs of his old age.
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Luo Zhiguang explained that the establishment of the concept of public annuity began in 1992, when the Hong Kong government was conceiving the establishment of a mandatory provident fund system. When he met with the then Secretary of Education and Manpower, Chen Zuze, he raised a basic issue of MPF, that is, low-income people forced the government to make contributions. After 40 years, the accumulated amount will not be enough to support their retirement life, but because the accumulated amount of MPF exceeds the upper limit of various social welfare assets at that time, it is not fair to them.
He also pointed out that annuity was one of the areas he covered when he conducted a research on life insurance when he was studying statistics at university. The concept of annuity plus the issue of the cumulative amount of MPF later became the basis for his proposal to establish a public annuity. .
Luo said that the introduction of the annuity plan in 2018 is only 50,000 and the target is obviously low-income people.
In response to criticism from the public that he suggested purchasing public annuities only for high-income earners, Luo said that he checked all the articles he had written, including the documents submitted to the SAR government in 2015 and 2016 on the proposal to establish a public annuity. What is the focus? Assist low-income to middle-income people in their retirement life, without mentioning high-income people at all.
He said that when the Hong Kong Annuity Company launched its annuity plan in 2018, the entry was 50,000 and the upper limit was 1 million. The target group was obviously low-income retirees. Later, the upper limit was raised to 3 million, which was to take care of middle-income earners. To the retirement needs of high-income people.
More than 4,000 elderly recipients of Changshengjin have purchased annuities with more than half of the principal amount below 300,000 yuan
Luo said that under the future optimization of the elderly living allowance system, retirees can retain the upper limit of 350,000 in cash, purchase other assets for public annuities, and still qualify for the elderly living allowance.
As of the end of September this year, a total of 4,065 people received the elderly living allowance and purchased the public annuity.
Luo said that 42.1% of the cases are couples under the elderly living allowance, and both couples have purchased a public annuity. More than half (55.3%) have an annuity principal of 300,000 yuan or less, and one-fifth (21.2%) The principal of the annuity is 100,000 yuan or less.
Luo Zhiguang: MPF will not be considered mature until 2040
Luo said that the MPF has only been immature for 25 years since its establishment, and it will be considered more mature in 2040. It is necessary to cancel the MPF "hedging" and implement the "MPF Easy" platform to reduce the cost of MPF management. The MPF plays its better retirement protection function.
Monthly income of 18,000 yuan and contributions of about 1.58 million yuan in 40 years are not enough to cope with old age
He took a person with a monthly income of 18,000 yuan as an example. If the newly announced MPF annualized net internal rate of return minus inflation is 2.8%, he has contributed to the MPF for 25 years and will only have a current value of 777,000 yuan. After 40 years, the current value is about 1.58 million yuan. Therefore, he still needs to cope with his old age through annuity and elderly living allowance.
However, Luo emphasized that as the MPF matures, the proportion of retirees who need to use annuities to cooperate with the elderly living allowance will gradually decrease.
It is expected that "post-20s" men are over a hundred years old and call for annuities to buy annuities. Luo Zhiguang: I wish people a long life, be careful to force MPF to be converted to annuities. Mandatory annuity reversion: The labor sector rebounds: Wage workers pick out external concerns and stir up crowds. Luo Zhiguang: Cancel the MPF hedging before the speculators are not profitable for employers money
