Pension System Analysis In Macau

In Macau,the problem of aging population is an indisputable fact.The existing retirement protection system is very fragile,as many Small and Medium Enterprises do not provide sufficient retirement protections to their staffs,causing difficulties to maintain confidence on work.If this trend continues,there will be great economic impacts and social problems influencing Macau in the future.Therefore,the establishment of the pension system is a necessity and under urgency.As Macau is under rapid economic growth in recent years,the basic conditions to revise and improve the existing retirement security system have already existed.This paper is based on the pension theory,in combination with the actual situation in Macau,analyzing the inadequacies and the courses in current pension fund system.Learning from China,Hong Kong and Chile's experience, this paper had made a bold hypothesis to perfect Macau pension system, suggesting forward implementation proposals as well.That is,dividing mandatory contributions into social security and provident funds.By having both funds charge to invest,helping employees/workers to receive basic living protections after retirement.Furthermore,according to their personal needs,setting up personalized investment profiles to earn additional retirement income.In addition,the paper will propose methods to raise the retirement protection funds,usages and risks control, striving to provide a reference for the reformation of Macau government pension system in the coming future,helping Macau citizens to reach a better retirement protection level.