The New Paradox of Thrift: Financialisation, retirement protection, and income polarisation in Hong Kong

ABSTRACT: The Hong Kong SAR government has always been proud of the fact that Hong Kong retains its top ranking in terms of “market freedom” according to most international rating agencies and think tanks. What the government has been much more reluctant to recognise is that, more than 15 years after the handover, Hong Kong now also tops other developed economies in terms of income inequality. The growing inequality is caused, among other things, by worsening poverty among the aged. This paper attempts to provide an updated analysis of income and wealth polarisation in Hong Kong, with a particular focus on the retirement protection policy and old-age poverty. It will examine the polarising effects of the financialisation of the Hong Kong economy. KEYWORDS: Financialisation, asset-based welfare, pension fund capitalism, public housing, retirement protection, income polarisation, old-age poverty.