Hong Kong – The Hong Kong Chartered Governance Institute (HKCGI) (Institute) has released a survey report titled ‘A Sustainability Governance Issue: Retirement Age & A Managed Process’, drawing insights from approximately 1,300 respondents. The Hong Kong Census and Statistics Department forecasts a significant increase of around 90% in Hong Kong's senior population from 1.45 million to 2.74 million by 2047. The world's population is likewise ageing as people live longer and healthier.
Based on respondents' views, the report advocates for 65 and beyond (or 65+) as the preferred retirement age for Hong Kong organisations. That is, organisations could set a retirement age of 65 in line with the civil service and, depending on organisational needs, adopt a managed process for open and transparent discussions around one year before retirement for post-retirement full- or part-time extensions on mutually agreeable terms. Organisations will not take on additional risks as they can replace underperformers.
Ms Edith Shih FCG(CS, CGP) HKFCG(CS, CGP)(PE), Honorary Adviser to Institute Council, Past International President, The Chartered Governance Institute and Institute Past President, as well as Executive Director and Company Secretary, CK Hutchison Holdings Limited, noted that: "As an executive of a multinational conglomerate with operations worldwide, and recognising the world population is ageing healthily, it is inevitable, because of the demography, that economies and organisations need to retain senior employees for sustainability of their economies and business operations respectively."
Mr David Simmonds FCG HKFCG, Institute President; Chief Strategy, Sustainability & Governance Officer, CLP Holdings Limited, agreed and added, "From the strategic business perspective, simply retiring employees because of their birth-day, that is reducing it to a number, is no longer sustainable. Rather, a more careful assessment of their contributions is required as part of succession planning."
To view the press release, please click HERE.
To view the report, please click HERE.