Hong Kong ranks second in Asian pension systems, behind Singapore, as ageing tests retirement
Hong Kong’s retirement system remains one of Asia’s stronger performers this year, ranking second and trailing only Singapore. The two remain clear regional leaders, ahead of Malaysia, mainland China, Taiwan, Japan and South Korea, according to a report.
The city retained its B grade, with its score edging up from 70.6 to 71.2, ranking 16th globally out of 55 systems, according to the annual Marsh CFA Institute Global Pension report by Marsh, a New York-based global professional services firm, and CFA Institute, on Tuesday.
In particular, Hong Kong continued to score strongly on integrity, receiving an A grade of 89.4 for governance, regulation, member protection and communication.
Hong Kong’s Mandatory Provident Fund (MPF), its compulsory retirement savings scheme, covers 4.97 million members. The city has no statutory retirement age and most people retire between 60 and 65, with MPF benefits generally accessible from age 65.
Mainland China also lifted its overall grade from C to C+, ranking fourth in Asia and narrowing the score gap with third-placed Malaysia. Mainland China, together with Australia, the United Arab Emirates, Oman and Panama, has improved their index grades this year.
As fertility rates fall and life expectancies rise, the world’s retirement income systems face mounting pressure. Traditional retirement ages of 60 or 65 are becoming increasingly misaligned with the realities of longer, healthier lives, the report said.
Hong Kong’s retirement system remains one of Asia’s stronger performers this year, ranking second and trailing only Singapore. The two remain clear regional leaders, ahead of Malaysia, mainland China, Taiwan, Japan and South Korea, according to a report.
The city retained its B grade, with its score edging up from 70.6 to 71.2, ranking 16th globally out of 55 systems, according to the annual Marsh CFA Institute Global Pension report by Marsh, a New York-based global professional services firm, and CFA Institute, on Tuesday.
In particular, Hong Kong continued to score strongly on integrity, receiving an A grade of 89.4 for governance, regulation, member protection and communication.
Hong Kong’s Mandatory Provident Fund (MPF), its compulsory retirement savings scheme, covers 4.97 million members. The city has no statutory retirement age and most people retire between 60 and 65, with MPF benefits generally accessible from age 65.
Mainland China also lifted its overall grade from C to C+, ranking fourth in Asia and narrowing the score gap with third-placed Malaysia. Mainland China, together with Australia, the United Arab Emirates, Oman and Panama, has improved their index grades this year.
As fertility rates fall and life expectancies rise, the world’s retirement income systems face mounting pressure. Traditional retirement ages of 60 or 65 are becoming increasingly misaligned with the realities of longer, healthier lives, the report said.
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