In order to deepen the young people’s understanding of the social security policies of the Macao SAR, the President of the Administrative Committee of the Social Security Fund (abbreviated to FSS in Macao), Iong Kong Io, recently visited the Macau University of Science and Technology (MUST) to introduce the old-age security policies such as the Social Security System and the Non-Mandatory Central Provident Fund System, on the theme of “Two-Tier Social Security System, Walking with You Through Your Life Journey”, and shared and exchanged views on financial management with teachers and students there.

Iong first introduced the ageing trend of Macao society.  It is estimated that the proportion of elderly population aged 65 or older in Macao will be about 14.2% of the local population next year.  By 2036, the proportion will rise to 24.7%, that is, one in every four people.  In order to cope with the ageing population and assist residents in preparing for their retirement, the SAR government has established a two-tier social security system.  The first tier (Social Security System) provides basic old-age security for residents by collecting fixed contributions and paying fixed benefits.  The second tier (Non-Mandatory Central Provident Fund System) allows employees and employers or individuals to save and invest by participating in the provident fund contribution scheme, in order to accumulate wealth and make their retirement more comfortable.  He encouraged young people to make good use of social security policy measures and resources, and they should pay more attention to their social security rights and obligations when they enter the workforce or start a business in the future, and they can also accumulate retirement savings early by participating in the Non-Mandatory Central Provident Fund System. 

Some students were concerned about whether it is too early for young people to save for retirement and the investment issues of the Non-Mandatory Central Provident Fund.  Iong said that investment mainly involves three major elements － principal, time and return rate.  Among them, the principal and the return rate are affected by many factors such as personal income and investment risk, and time is relatively easier to plan and control.  As long as the investment time is sufficient, the ideal savings goal can be easily reached even if the principal is relatively small and the return rater relatively low.  At present, the Non-Mandatory Central Provident Fund has a total of seven fund management entities providing a total of 41 retirement fund products, and the investment strategy and risk level of each retirement fund are different.  The relevant information can be found on the unified information platform established by the FSS (eservice.fss.gov.mo/main/funds).  Iong also reminded that the Non-Mandatory Central Provident Fund is a long-term investment plan that takes 10 to 20 years, or even 30 years, to see the results of the investment. Therefore, individuals must comprehensively consider their own conditions and needs, and choose an appropriate retirement fund.

The atmosphere of the exchange was relaxed and harmonious.  Participants said that the content of the discussion was closely related to life planning and retirement protection, and they all benefited a lot.