Universalism or selectivism: Old age allowance as a case in Hong Kong

Abstract

Due to structural fiscal deficit, Hong Kong SAR Government might adopt a more selective approach in the provision of social welfare. At the same time, Hong Kong population is aging rapidly in the coming two decades and the retirement protection becomes the challenge to policy makers. The Old Age Allowance (OAA), one form of public financial assistance to older adults, is consisted of two components: one is Normal OAA with lenient means-tested but the other one is High OAA which is universal. It is suggested to be combined with the Old Age Category of CSSA so as to provide greater and more selective support for the need. In a survey, we found that 70% of 1,867 middle-aged adults would definitely or probably apply for the OAA when they reach the qualified age whereas only 3.8% of them would definitely or probably not apply for the OAA. Both bivariate and multi-variate analyses revealed that those who would apply the OAA had higher financial needs than those who would not. Results suggest that the future OAA recipients need the financial support from the OAA rather than perceive it as a citizen right. ©2005, Institute of Aging Studies.