Faced with many global economic uncertainties, the government has been urging the community to prepare well for the future.
Let's begin with our demographics. Hong Kong's birth rate keeps on declining - down to 7.49 per 1,000 people in 2011 from 11.13 a decade ago, with the median age rising from 36.7 to 41.7 years. Life expectancy has improved to 82.04 from 79.67 years. It is expected that in 20 years' time, nearly a quarter of our population will be aged 65 or above.
In the coming decades, we face the double challenge of both an ageing and shrinking domestic population, affecting our productivity. Public policy has to respond to the mounting demands for expensive medical services and elderly care, and a long-term retirement protection plan.
Not only that, most of the present 45-64 cohort, who account for 31.3 per cent of the population, were in their prime during Hong Kong's economic miracle in the 1980s and '90s. With high expectations as they enter retirement age, they will form a more assertive 'grey power' force than their predecessors.
We have a more educated population. The proportion of people aged 15 and over with post-secondary education jumped from 16.4 per cent in 2001 to 27.3 per cent in 2011, close to the OECD average of 30 per cent. However, personal income has not caught up with economic growth. Whereas GDP increased by over 30 per cent in the past decade, median monthly income from main employment and median monthly household income remained rather stagnant, at HK$10,000 and HK$18,710 respectively in 2001, and HK$10,000 and HK$17,250 in 2006. These have only recently moved up to HK$11,000 and HK$20,500 in 2011, partly thanks to the new statutory minimum wage.
The weak trickle-down effect in wealth distribution feeds into growing public discontent. As income growth fails to keep pace with rising levels of education, the educated become more disgruntled and alienated, especially the middle class.
In a nutshell, we have an anxious and insecure elderly population, which is growing, as well as an anxious and frustrated young generation, which will influence politics in the coming decade.
