@article{1b64dc1098094592a62ab609c0b088fb,
title = "Impact of precarious employment on retirement planning for young workers and their parents: the case of Hong Kong",
abstract = "Purpose: Retirement protection has been widely debated in Hong Kong over two decades. The debate about the relationship between social insecurity and retirement protection, and provoked consideration of a choice between a rights-based universal retirement system and means-tested protection for senior citizens are still contested. This study aims to explore the understanding and behaviours of young workers regarding retirement planning, their difficulties and worries with the implementation of providing support for their parents' retirement. Design/methodology/approach: This was an exploratory study to target young workers aged 20–34 years to participate. Qualitative data presented in this study were drawn from 16 young workers. Seven were female and nine were male young workers. Findings: The research found that young workers who have a relatively low level of income, particularly for non-standard workers and the self-employed, both are likely to find difficulties to contribute to their own retirement planning and their parents' retirement with the emerging problems of job insecurity and instability. Young working people in lower socio-classes have further limited choices and control over their own retirement planning, as well as providing support for their parents' retirement that may cause a breach of intergenerational contract. Originality/value: With the increasing number of young workers with precarious employment or unemployment, this study has contributed to a shift in views regarding intergenerational contracts, particularly in the need to support other generations of family members in a contemporary Hong Kong society.",
keywords = "Hong Kong, Parents, Precarious employment, Retirement planning, Young workers",
author = "CHAN, {Ka Ki} and Au-Yeung, {Tat Chor}",
note = "Funding Information: This research was supported by the Centre for Youth Research and Practice, Hong Kong Baptist University and Hong Kong Policy Viewers. The author hereby declares that the advice and information in the manuscript are believed to be true and accurate on the date of its release to the press. Approval for the respective ethics issues addressed in this research was obtained from Hong Kong Baptist University. Funding Information: Retirement protection has been widely debated in Hong Kong over the past two decades. Like most developed countries throughout the world, Hong Kong is facing an ageing population. According to the Hong Kong Census and Statistics Department, population estimates predict a rise in the number of persons aged 65 or above from 18.4% in 2019 to 33.3% in 2039 (Census and Statistics Department, 2020). Therefore, it is likely that the demand for financial security for the expanding population of elderly people will increase. To meet this challenge of financial income protection, Hong Kong has followed the World Bank's recommendation to use a multi-pillar model. The first pillar is public and is funded by taxes. It serves as a social safety net to satisfy the basic needs of elderly people. In Hong Kong, the first pillar includes the following three systems: the old age category of Comprehensive Social Security Assistance (Old Age CSSA), the Old Age Living Allowance (OALA) and the Old Age Allowance (OAA). The second pillar is a mandatory managed retirement system, namely, the Mandatory Provident Fund (MPF), which was established in 2000. Contributions are primarily made by the individuals, but some are also made by employers. Specifically, proportional percentages of income are saved and invested to meet living expenses after retirement. As this is a mandatory system, all employed and self-employed persons aged between 18 and 65 are required to take part. The third pillar is voluntary saving by individuals or family support, to supplement the first two pillars. The influence of traditional morals and Confucianism has resulted in a substantial proportion of elderly people receiving financial support from their adult children. found that the total annual financial support received from adult children amounts to HK$23.2bn. This amount is greater than the total combined expenditure by the Old Age CSSA and OAA, which is approximately HK$12bn. The above figures show that elderly people in Hong Kong are much more dependent on the third pillar of retirement protection than the first two pillars. Publisher Copyright: {\textcopyright} 2021, Emerald Publishing Limited.",
year = "2021",
month = nov,
day = "2",
doi = "10.1108/IJSSP-07-2020-0265",
language = "English",
volume = "41",
pages = "1278--1289",
journal = "International Journal of Sociology and Social Policy",
issn = "0144-333X",
publisher = "Emerald Publishing",
number = "11-12",
}
