Write easy on crisis during old age
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In 1st December, 2000, the Mandatory Provident Fund Schemes (MPF) System was carried out (MPFA, 2006). In 1994, the World Bank suggests that there should be three pillars to support the aged. The first one is creating a social security net from the tax. The second one is a mandatory private saving scheme. And the last one is the personal saving and the retirement planning from the insurance companies. Definitely, MPF system is the second type. It is impossible to implement a tax-financed pension system in Hong Kong as the tax rates are low (17%). In 2008, Hong Kong was even listed as a tax haven in the report published by United States Government Accountability Office. Before the implementation of MPF system, the elderly can only depend on Comprehensive Social Security Assistance (CSSA) Scheme and Social Security Allowance (SSA) Scheme, which are not designed as a pension system, when they do not have enough money to support their daily life. This essay will describe CSSA, SSA, MPF and the pension system in the future