small amounts that they save today would not add up to support their retirement, hence find it tempting to spend more now and save less, relying instead on the social security net provided by the government when they retire. 10. ladies and gentlemen, it may be a bit too early to assess the success or otherwise of the hong kong experiment. however, i am very excited by the prospects of the two hkmc schemes in helping retirees in hong kong to create self - made life pension. the model that we are pursuing in hong kong is not only highly innovative, it also serves as a pilot that, if proved to be successful, would provide a good model for many countries in the world as an additional retirement support option that is financially viable and thus sustainable over the long run. 11. thank you very much. 1 figure for the first quarter of 2018. source : quarterly report on general household survey ( q1 2018 ), census and statistics department. 4 / 4 bis central bankers'speeches

norman chan : self - made life pension remarks by mr norman t l chan, chief executive of the hong kong monetary authority, at the philanthropy for better cities forum, hong kong, 20 september 2018. * * * distinguished guests, ladies and gentlemen 1. one of the biggest challenges in many societies in recent decades is how to ensure that the elderly have sufficient income or financial means to maintain a decent retirement life. many governments have introduced different forms of pay - as - you - go retirement support schemes, which unfortunately have now proved to be hard to sustain fiscally in the longer run if the population is ageing rapidly. 2. the hong kong population is also ageing. while we celebrate having the longest life expectancy in the world, with women reaching 87 and men 81, this also creates tremendous challenges for retirement protection. in the context of retirement protection, i can divide the population into three groups : high income people who have accumulated significant amount of savings and ( i ) wealth during their working life. they have the financial means to take good care of themselves during retirement and we need not worry about them ; the underprivileged, working poor or lifelong poor. this group of people depends crucially on the social safety net provided by the government as they don ’ t have the ability or financial means to look after themselves. in hong kong, the government ( ii ) support mainly takes the form of comprehensive social security assistance, highly subsidized housing, health care and education. as for the elderly, the government provides a non - contributory means tested old age living allowance for those aged 65 or above ; and people that do not fall within either of the first two groups. typically this group of citizens are those who have worked hard for their whole life, used up the bulk of their earnings in raising their children, and may be owning a small apartment. most ( iii ) of them, by the time they retire, do not enjoy any pension or other forms of voluntary retirement benefits. they do have some accumulated savings in their mandatory provident fund accounts, but it is unlikely that, for various reasons, the amount, on its own, would be large enough to support a decent retirement life. 3. it is the retirement protection of this third group of citizens that i wish to address today. in hong kong, about 70 % of the 1. 7 million privately owned residential housing units, including subsidized home ownership flats, are owner - occupied. around 65 % of