Old age allowance is lasting measure: CY Leung

It's actually poverty-alleviating, he adds.

According to a government release, the old age living allowance is a lasting poverty-alleviation measure, and the income and asset declaration is necessary to bring maximum benefit to senior citizens who are most in need, Chief Executive CY Leung says.

Speaking at a question-and-answer session at the Legislative Council today, Mr Leung said society generally agrees that the Government should first take care of the people who are in need, particularly seniors.

But the Government must be prudent when contemplating new expenditure, and take into account long-term implications, so it does not present an unbearable burden in future, he said.

The allowance's annual cost would rise to about $10 billion without an income and asset limit for people over 70 years old, and would continue to grow. As the working population starts to shrink from the year 2020, the burden on younger generations will rise.

The allowance is not the only poverty-alleviation measure, Mr Leung added. The Government will form a poverty commission to help formulate poverty-alleviation policies. The commission will also set a poverty line to deal with the problem objectively, and propose strategies to improve people’s livelihood.

The Government does not mean to pressurise lawmakers, he stressed, but added it can only start preparation works for the elderly allowance after funding is approved.

Poverty, and retirement protection, are two areas that concern him. He proposed the allowance in his manifesto, as well as perfecting the Mandatory Provident Fund scheme, and studying the implication of the ageing population on public finances, so the Government can plan accordingly.

The Central Policy Unit is conducting a citywide study involving 10,000 households, until the end of this year. The Government will then discuss with people how to establish a good retirement protection system.