Individual entering retirement, they have to enjoy the remainder of their life, the harvest benefit and pursuing a target with their leisure time. The beautiful Image of retirement can be accomplished if you are being protected with a retirement protection, such as savings or funds. Without these schemes, I’m afraid the retirement is only going to be a beginning of a nightmare. In actuality, prior to the implementation of the Innovation and Technology Fund scheme, just about one-fifth of the workforce of 3.4 million people have some type of retirement protection. Contribution from The progress of education degree breakthrough in the treatment, modern technology to fight the natural disasters and so forth, the population of Hong Kong are currently living larger than previously, but getting older. These days 65 and over is aged. By 2016 the percentage will be one citizen in every 5 people and 13 percent from 2035. Unless some way is found of financing the health and welfare needs of the population of older, a burden will fall on the shoulders of their taxable population that is working. Their salary will be taxed to fulfill the demands. Without adequate resources, the resources that were scarce will jeopardize the services and welfare we are currently enjoying something has to be done to manage the situation.
Significance of ITF:
The World Bank Have outlined a framework of the defense for the elderly called ‘three pillars’. This recommended that the aged should be protected by programs and promotes economic growth. The three pillars advocated by the World Bank are.
- Mandatory, Privately managed, fully funded contribution strategy
- Publicly managed, Security net for the old
- Voluntary Savings and insurance
The SAR Government is working a Comprehensive Social Security Assistance Scheme, which offers basic social security to the needy, and after much debate it was decided in 1995. The itf funding MPF Scheme should be released, there was considerable debate concerning the best method for Hong Kong. With the introduction of MPF Hong Kong will have for age protection of the three pillars set up. Employer and Employee each pay 5% of a worker’s monthly salary. The MPF law gives a range of investment options under an employer’s MPF scheme to an employee. Mandatory this strategy represents a starting point for forcing people to plan for their retirement. Apart from helping to provide for the retirement needs of countless individuals, the vr system training hong kong is very likely to radically reshape savings customs and investment attitudes and it will extend the pension umbrella into the remaining two million utilized by roughly 250,000 small and medium sized businesses. Different Retirement protection systems have their pros and cons. It is usually accepted that MPF suits Hong Kong’ needs, but as we all know, no system is prefect, MPF is no exception, criticisms have been attracted by this policy.