The Government today announced plans to expand the social security system to ensure all residents have some money when they retire.

The expansion will cover all permanent residents aged 22 or above, whether they are homemakers, self-employed businesspeople or unemployed.

The Secretary for Economy and Finance, Mr Francis Tam Pak Yuen, said the new system would be implemented once it is approved by the Legislative Assembly.

The Government will also open a savings account for permanent residents aged 22 and above, and deposit a sum of money in it, to set the ground for the introduction of a mandatory central provident fund, to encourage employers and employees to save for their retirement, said Mr Tam.

The sum to be deposited into each account would depend on the surplus of the fiscal year 2008, and likely in the following years.

The Government would introduce the necessary legislation to enhance the social security system, Mr Tam said.