Hong Kong’s Ageing Population - an Overview

Selina Yeung (SIS); Artwork by Adrian Wong (VSA)

As students in Hong Kong, we’re all well versed in a myriad of issues today - that is, the most prevalent, media-covered issues. Walk up to any classmate and they will rattle of a lengthy list of problems with ease. The world appears to be crashing down around our ears, to the surprise of no one, and there’s not one issue of the tip of their tongue that would take you aback.

But here’s one that might:

The world is growing older.

What does that mean, exactly? In demographic terms, population ageing is an increase in the median age of a population. We are living in an age of unprecedented technological advancement, which in turn increases life expectancy. Growth in the elderly population is indicative of overall decline in mortality and fertility rates, and driven by improvements in medicine, sanitation, and food supply. In short, people are living longer. It is undoubtedly a positive indicator of substantial welfare advancement and our ability to prevent premature death.

However, as with all good things, there are fipsides - for the frst time, the world faces the challenges of an ageing population.

The age group of people 65 and above is growing faster than any other, with Hong Kong expecting one in every three people to be older than 65 by 2066. As we undergo large-scale social transformation, there are, as always, economical implications. Tis is mainly prevalent in countries most affected by population ageing - i.e. developed economies like Hong Kong. We face a shortage of labour as retirees gradually outnumber new workers. It is challenging for an economy that lacks qualified workers to fill in-demand jobs, which in turn fuels the likelihood of experiencing economic slowdowns. Similar labour shortages exist in the healthcare system. Given that demand for healthcare services rises with an aging population, countries facing population ageing must invest in more money and resources for their healthcare sector as the population continues to age. As healthcare spending is already high in advanced countries, it is difficult to increase spending while simultaneously ensuring high quality functioning of other social services.

In addition, Hong Kong’s dependency ratio is expected to jump from 198 in 2014 to 567 by 2064, meaning each elderly person will be supported by only 1.8 people of working age. As in other developed countries, the shrinking population means costs of elderly care are being shunted down generations. This is evidenced in the sinister upside-down family pyramid known as “4-2-1” in China, where four grandparents and two parents are ultimately supported by a single child. Younger generations of workers are being forced to bear the brunt of an ageing population without robust policy in place to help them. Population ageing is especially concerning for Hong Kong because we have an ultra-low fertility rate (which will only compound the problem) of 1.1 children per woman - the reason for which is inextricably linked to issues such as high living cost. With the culmination of these factors, heightened fiscal stress due to population ageing is inevitable.

Not only are Hong Kong’s proceeding generations vulnerable to population ageing - the current ageing population are particularly susceptible victims of discrimination, poverty and neglect. Hong Kong has a pervasive stigma against the older generation - they are considered ‘old and worthless’ and a ‘burden’ on society. This is a misguided portrayal and stark underestimation of the productive contributions elders make to society. Contrary to popular belief, though they are retired, elders frequently engage in valuable activities such as taking care of grandchildren and the house or participating in volunteer work. Conversely, a number of elders - many of whom are neglected by family members - are unable to fully realize their potential and live out a good quality of life, or are simply not encouraged to engage in community activities. We need to remove the depiction of elders as a ‘problematic’ group before we can promote their engagement in society.

The ignorant perception of elders as ‘worthless’ is indirectly perpetuated by the government. There is insufficient support for Hong Kong’s ageing population. The government’s most popular financial assistance initiative, the Old Age Living Allowance, offers a monthly payment of up to HK$2600 and is a pertinent example of lacking support. It’s even dubbed “ 生果金 ” or “fruit money” as these handouts are too paltry to pay for much else. Many elderly people were previously low-income workers and currently have no form of pension. Another example of lacking support is one we are all familiar with - in a city enjoying one of the world’s longest life expectancies and booming economic growth, numerous ‘cardboard grannies’ make a living scavenging for scraps and boxes, barely scraping by. The government regards cardboard collectors as unlawful, consequently providing next to zero health and safety protection for them. How is it possible that we have normalized elderly poverty, as if it’s merely an embarrassing stain on our luxury-brand clothes?

It is an ugly, undeniable truth - Hong Kong is struggling to support its ageing population.

On that note, while the challenges of population ageing are great, they are not insurmountable. Hong Kong can turn to other countries who have introduced measures to alleviate some of the strain for inspiration. Japan, with one of the largest ageing populations in the world, has introduced a series of measures - like the New Angel Plan (1999) and the Plus One Policy (2009) - designed to increase fertility rate through schemes such as allocating funds to childcare and educational facilities. To combat poverty and ageism, Jerusalem organized an age 60+ employment centre to increase employer awareness about the value of older workers.

Hong Kong needs to encourage longer career-span by raising retirement ages, which would not only generate more private resources for retirement and income tax revenue for government support, but would also decrease the widening gap between life expectancy and retirement, diminishing workforce shortage. The city should explore ways to offer elders opportunities in the labour market and help them in social engagements. Promoting health among the general population will also have a direct impact on population ageing, as healthier individuals have enhanced productivity, labour market participation, higher saving rates and lower medical expenses. Unfortunately, we are far from achieving these goals and many barriers still stand in the way of elderly employment; including costly health insurance, ageism in recruitment or the workplace and rigid work schedules. Determining adequate responses and policies to the issues will take extensive investment and research.

According to data from World Population Prospects, the number of persons aged 80+ is projected to triple, from 143 million in 2019 to 426 million in 2050. Population ageing is a problem that won’t disappear anytime soon. Though there are grassroots organizations and NGOs striving to help the ageing population, we still need heightened global awareness and all our combined efforts before any of the problems on that list are going to be taken down.

We cannot be apathetic and put the problem out of mind.