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Executive Summary
The situation of elderly poverty is deteriorating as there are an increasing number of seniors living under
poverty. This report aims at examining the problem of elderly poverty in Hong Kong and thus raising the
governments awareness of this problem. It can be attributed to the flaws of social welfare policies
carried out by the government. In Methodology section, the methods of soliciting information are
illustrated. Secondary sources and an interview with Dr. Yeung Sum are the major sources of collecting
information. Then, in Findings section, an evaluation of the elderly poverty problem and a
comprehensive examination of Old Age Allowance policy and Comprehensive Social Security Assistance
(CSSA) Scheme is conducted. There are weaknesses in these two policies which make them ineffective
and insufficient. As for Old Age Allowance policy, albeit there is greater flexibility under Guangdong
scheme which is a refined scheme to abolish the full-year stay requirement in Hong Kong, the amount of
allowance is not sufficient to provide financial assistance for the poor elderly. Regarding CSSA, while it
renders a safety net for the poor elderly, the application procedure is too complicated and the amount
of subsidy is inadequate to support them financially. After conducting an examination of two major
social welfare policies, in the Recommendations section, several suggestions are also made for the
government to make improvements of these policies including increasing the amount of Old Age
Allowance and simplifying the application procedure of CSSA.
Lam Pak Kan, Spencer UID: 3035056541 Investigative Report CAES 9922
Table of Contents
1. Introduction
P.3
2. Methodology
3. Findings
3.1 Evaluation of Elderly Poverty Problem in Hong Kong
3.2 Policies Implemented by the Government
3.2.1 Old Age Allowance Policy
- More flexible under Guangdong scheme
- Insufficient Amount of Allowance
P.3
P.3-6
P.6-7
5. Conclusion
6. Reference List
P.7
P.8-9
Lam Pak Kan, Spencer UID: 3035056541 Investigative Report CAES 9922
1. Introduction
Elderly poverty means the seniors low financial status and the lack of basic needs in daily life (Nicholas
& Michael, 2009). The purpose of this report is to arouse the governments awareness by examining the
problem of elderly poverty in Hong Kong. This report is divided into several sections. The methods of
collecting information are first illustrated. In Findings section, it then evaluates the situation of the
elderly poverty in Hong Kong. The effectiveness of Old Age Allowance and CSSA, two of the major social
welfare policies is also examined. While there are strengths and weaknesses in these policies, this report
recommends the government increase the amount of Old Age Allowance and simplify the application
procedure of CSSA in Recommendations section.
2. Methodology
Most of the information was derived from mainly secondary sources. These included books, journal
articles, news articles and credible websites. An interview was also conducted with Dr. Yeung Sum, a
professor of the Department of Social Work in the University of Hong Kong specializing in Hong Kong
social policy.
3. Findings
3.1 Evaluation of Elderly Poverty Problem in Hong Kong
The number of elderly people suffering poverty surged by 32% in Hong Kong from 2011 to 2012,
indicating that the problem becomes more acute (Ngo, 2013). It is estimated that more than 130,000
seniors will become poor in 2033 (Interview with Dr. Yeung, 2013).
This might result in an escalating number of the poor elderly in obtaining allowance of the government.
Nearly a half of elderly people receive financial subsidies such as Old Age Allowance as their average
monthly household income is below $3000, which is difficult to sustain their living (The Hong Kong
Council of Social Service, 2009). This problem leads to excessive reliance on social welfare policies
because they lack sufficient savings and income to make ends meet. However, the government
implements inadequate and incomprehensive social welfare policies, leading to a vicious cycle in this
problem.
This problem brings about low social capital to them, meaning they have less interaction and trust in
society. The average number of friends of the poor elderly was 20.9 compared with 21.6 of the whole
elderly population in 2011 (Wong, 2011). Thus, they are more likely to be socially divided which leads to
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Lam Pak Kan, Spencer UID: 3035056541 Investigative Report CAES 9922
discrimination. They then have less social and political participation in society. The problem of elderly
poverty can be attributed to the flaws of social welfare policies, which will be examined in the following
section.
Lam Pak Kan, Spencer UID: 3035056541 Investigative Report CAES 9922
The government only renders $1135 which is a small amount of allowance to them each month. But this
cannot sustain their living every month. Each senior needs at least $3000 to deal with expenditures in
daily life including meal, transportation and medical fees (Interview with Dr. Yeung, 2013). It is
impossible for them to rely on this allowance without any savings or income to cope with daily expenses.
As a result, it can be seen that the amount of allowance is not sufficient to help the elderly get rid of
poverty.
Table1: The percentage of the respondents whether they can handle daily expenses.
Source: Oxfam Hong Kong. (2010). p. 23. Research Report on the Living and Health Conditions of poor
Elderly not on Comprehensive Social Security Assistance and their Attitudes towards Social Security.
Oxfam Hong Kong.
Lam Pak Kan, Spencer UID: 3035056541 Investigative Report CAES 9922
4. Recommendations
There are weaknesses of Old Age Allowance and CSSA as demonstrated above. In light of this, two
suggestions are made for the sake of improving these policies.
Lam Pak Kan, Spencer UID: 3035056541 Investigative Report CAES 9922
Security Assistance Index of Price (Woo, Ho, Yu, & Lau, 2000). This index can reveal the impacts of price
change in different goods and services so the elderly can obtain adequate allowance for daily life
(Census & Statistics Department, 2011).
5. Conclusion
As illustrated above, the problem of elderly poverty in Hong Kong is worsening, which can be ascribed to
insufficient and ineffective social welfare schemes including Old Age Allowance as well as CSSA. Several
recommendations are made for the improvements of these policies. It is hoped that the government can
take the aforementioned suggestions into consideration so as to eradicate this problem.
Lam Pak Kan, Spencer UID: 3035056541 Investigative Report CAES 9922
6. Reference List
Census and Statistics Department. (2009). Thematic Household Survey - Hong Kong Residents
Experience of and Aspiration for Taking Up Residence in the Mainland of China. Census and Statistics
Department.
Census and Statistics Department. (2011). The Social Security Assistance Index of Prices, Hong Kong
Monthly Digest of Statistics. Census and Statistics Department.
Chan, Yeung M. (2006). TB rates in Hong Kong Associated with Low Education, Poverty And Old Age. Law
& Health Weekly, 451, 1-10.
Cheung, Matthew. (2013). Hong Kong: Allowance Set for GD Retirees. MENA Journal, 10, 1-3.
Hong Kong's Policies of Impoverishment; A Poverty Line Is another Step on Hong Kong's Road to
Serfdom. (2013). Wall Street Journal, 3, 10-15.
Hong Kong Government. (2013). Comprehensive Social Security Assistance Scheme. Retrieved from
http://www.swd.gov.hk/en/index/site_pubsvc/page_socsecu/sub_comprehens/index.html
Nicholas, Joyce and Wiseman, Michael. (2009). Elderly Poverty and Supplemental Security Income.
Social Security Bulletin, 69, 45-73.
Ngo, Jennifer. (23 August, 2013). Hong Kong's Elderly Among Poorest in Developed World. South China
Morning Post. Retrieved from http://www.scmp.com/news/hong-kong/article/1298751/poor-andelderly-hong-kong-its-worse-you-think?page=all
Oxfam Hong Kong. (2010). Research Report on the Living and Health Conditions of poor Elderly not on
Comprehensive Social Security Assistance and their Attitudes towards Social Security. Oxfam Hong Kong.
Lam Pak Kan, Spencer UID: 3035056541 Investigative Report CAES 9922
Legislative Council of Hong Kong. (2009). Monthly Expenditure for The Elderly in Hong Kong. Legislative
Council of Hong Kong.
Legislative Council of Hong Kong. (2012). Oxfam Hong Kong- Position Paper on the CSSA Scheme.
Legislative Council of Hong Kong.
Wong, Hung. (2011). Quality of Life of Poor People Living in Remote Areas in Hong Kong. Social
Indicators Research, 100, 435-450.
Wong, Hung. (2007). Misled Intervention by a Misplaced Diagnosis: The Hong Kong SAR Government's
Policies for Alleviating Poverty and Social Exclusion. China Review, 7, 123-147.
Woo, J.; Ho, S.; Yu M. and Lau, J. (2000). An Estimate of Long-Term Care Needs and Identification of Risk
Factors for Institutionalization among Hong Kong Chinese Aged 70 Years and Over. The Journals of
Gerontology, 55, 64-69.
The Hong Kong Council of Social Service. (2009). Elderly Services in Hong Kong. The Hong Kong Council of
Social Service.