1. 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

2. Outline Ageing and wellness continuum Wellness determinants and investment instruments Individual investment Policy instruments

3. Ageing & Wellness Continuum

4. Ageing Continuum Ageing Ageing - a natural part of the life cycle a lifelong process part of human developmental process Life-course approach Life-course approach Early Life- growth & development Adult Life- maintain highest possible level of function Later Life - maintain independence and prevent disability

5. Ageing in Hong Kong Life expectancy at age 60 in Hong Kong Male Female 200121.426 201122.827.4 202123.828.4 203124.629.1

6. Wellness Continuum Continuum of wellness (at any age) WELL Active; physically and economically stableVULNERABLE Low income; lack of family support; chronic illness; isolationDEPENDENT Physically and economically dependent; loss of self- care ability

7. Wellness Determinants & Investment Instruments

8. Determinants Where an individual is on the continuum depends on WELLNESS Health Socialnetwork Finance Finance Personal resources

9. Investment instruments HEALTH Physical activity / exercise Diet and nutrition Not smoking WELL NESS Finance Personal resources Social Network

10. Investment instruments WELLNESS Health Social network Personal resources FINANCE FINANCE Work and income Savings Financial planning for retirement

11. Investment instruments WELL NESS Finance Personal resources SOCIAL NETWORK Good interpersonal relationship, particularly with family members Family and social activities Social support and mutual help Health

12. Investment instruments WELLNESS Health Social network Finance PERSONAL RESOURCES Education Lifelong learning & knowledge-building Leisure & hobbies Stress management & relaxation Self-reflection

13. Individual Investment

14. Healthy lifestyle Lifelong learning Interpersonal relationships Social activity and leisure pursuit Financial planning for retirement

15. Rethinking retirement RETIREMENT Creates old age dependency Not a natural part of the lifecourse A social construction Roots in pension eligibility

16. Ideal Types of Social Structure 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 Age Integrated Age Differentiated AGE YOUNG MIDDLE OLD Leisure Work Education EducationWorkLeisure

17. Policy Instruments

18. Active Ageing “ The process of optimizing opportunities for health, participation and security in order to enhance quality of life as people age ”

19. Three pillars of a policy framework for Active Ageing

20. 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. AgeingWorkforce ServiceEconomy

21. Policy Instruments Economic a business-friendly environment retain local professionals and attract overseas talents Fiscal Simple and low taxation Tax incentives for continuing education Financial MPF for retirement Products such as annuity, reverse mortgage, etc. Social

22. Social Philosophy The Government sees its primary role as helping people to enhance their ability to help themselves and to boost their will- power to do so

23. Social Policy: 4 Pillars Support & protection of vulnerable members Social safety net Community building Equality of opportunities SOCIAL POLICY

24. First Pillar – Equality of opportunities 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. SOCIAL POLICY

25. EDUCATION AND TRAINING 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 Skills Upgrading Scheme Employees Retraining Scheme Continuing Education Fund (CEF) First Pillar – Equality of opportunities SOCIAL POLICY

26. Second Pillar - Support & protection of vulnerable members 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. SOCIAL POLICY

27. Third Pillar – Social safety net 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 SOCIAL POLICY

28. 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

29. Lifecourse approach to Investment Human development Integrative Longitudinal Coordinated dimensions

30. Health, education, social services Government ’ s role as enabler and facilitator Lifecourse approach to Investment HEALTH SOCIAL SERVICES EDUCATION

31. Recurrent Public Expenditure by Policy Area Group in 2002-03 3.4% 5.5% 22.4% 4.1% 14.8% 5.6% 5.4% 11.3% 14.6% 12.9% 3.4% 5.5% 22.4% 4.1% 14.8% 5.6% 5.4% 11.3% 14.6% 12.9% Community & External Affairs Economic Education Environment & Food Health Housing Infrastructure Security Social Welfare Support Community & External Affairs Economic Education Environment & Food Health Housing Infrastructure Security Social Welfare Support

32. Joint Effort and Responsibility 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.

33. Thank You