Revealed in the latest proposal by our Chief Executive Donald Tsang last week, there may be a means test imposed on the old-age allowance system in the future. The Normal Old Age Allowance, generally called as “fruit money”, will be given only to elderly who pass the means test.

Donald Tsang stresses that the plan is essential for the substantial development of Hong Kong. As the population is aging rapidly, measures have to be done to make sure the future tax pool meets the needs of the expanding number of elderly.

Currently, the Normal Old Age Allowance is given to anyone aged 65 or above as a symbolic demonstration of respect to the elderly for their contribution to Hong Kong. However, the minimal sum is important to some of the elderly who are living under poverty. Yet, if the government can increase the allowance to those who pass the means test while cutting allowance to those who are well-off enough, the new proposal would actually create a wealth-redistribution effect to ensure those in need will have proper care. But it will happen only if the government is willing to provide more financial and health-care allowance to elderly who live in poverty.