Financial Secretary Paul Chan Mo-po’s decision to rein in the HK$2 (26 US cents) public transport concessionary fare scheme has given rise to the public perception that the Hong Kong government regards ageing as a fiscal burden.

This sentiment is hardly new. Whenever elderly care is discussed, it seems to be framed as a zero-sum debate where policymakers are stuck between the dilemma of tax increases or welfare cuts. This overlooks the dual economic role of senior citizens as consumers and contributors.

Investing in their well-being and engagement could transform this demographic into a driving force for Hong Kong’s economy, creating mutual benefits rather than austerity trade-offs.

Hong Kong’s “ageing in place” policy – a cost-efficient policy that emphasises home-based care over institutional support – has been in place since 2009. We calculate that delaying nursing home entry by one year saves about HK$235,930 per person in public funds.

Yet in reality, Hong Kong’s policy remains focused on reactive elderly support rather than proactive investments in seniors’ health and autonomy. Sixteen years after the idea of ageing in place was raised, our government still allocates, by our calculations, over twice as much funding to institutional care than community services.

An effective ageing-in-place policy requires a stronger focus on preventive care – and where better to start than in the home? Investing in home safety cannot be overstated: 74.5 per cent of seniors’ injuries in Hong Kong stem from falls and 41.5 per cent of their injuries happen at home.

Home modifications have been shown to reduce the risk and severity of falls and help avoid costly institutionalisation. Yet Hong Kong’s policies benefit mainly public housing residents (who can apply for free basic upgrades), leaving 40 per cent of the senior population (living in private housing) with scarce and fragmented support.

While the community care service voucher allows seniors to seek home safety support through therapists, it only targets frail seniors already on care home wait-lists – missing the preventive potential of early interventions. Implementing safety measures only after an accident has occurred, while important, might be a step too late.

To shift this paradigm, expanding the Elderly Health Care Voucher Pilot Reward Scheme to cover occupational therapist home assessments would encourage pre-emptive action and steer seniors away from last-minute spending on non-essential services before hitting the HK$8,000 voucher accumulation cap.

A complementary HK$500 rebate for follow-up consultations could ensure modifications remain effective as needs evolve. Investment in resilient home environments is central to the goal of ageing in place; they foster sustainable independent living.

Hong Kong’s ageing policies must go beyond merely enabling safe community living. Seniors today are much more than passive welfare recipients; they are skilled professionals redefining the meaning of retirement.

As such, Hong Kong can take advantage of what it’s ironically known to do best – considering everything in terms of investment returns – to explore policy strategies transforming seniors from a perceived burden into valued participants in Hong Kong’s social fabric.

Hong Kong’s policy addresses and budgets have consistently emphasised the silver economy’s potential. With the proliferation of senior-focused services, ranging from fitness programmes and retirement options across the border to savvy solutions like “gerontechnology”, we are witnessing the emergence of a promising market.

Yet financial barriers persist: much of the time, retirees’ incomes fall to less than half their pre-retirement earnings, making them conservative spenders. So how can Hong Kong turn ageing from an economic challenge into an opportunity for innovation and consumption-driven growth?

To activate the silver economy, the government will need to strengthen seniors’ financial security through enhanced savings schemes, long-term care insurance and tax incentives for voluntary pensions, along with employer-led campaigns that promote early retirement planning.

Stronger public-private partnerships could also broaden seniors’ access to affordable financial products while recognising their role as consumers driving demand for healthcare and leisure.

Seniors also represent a pool of untapped human capital. Some wish to seek re-employment. Initiatives like the re-employment allowance pilot scheme – which has thus far engaged an estimated 7,000 seniors and created over 3,000 jobs – precisely highlight their workplace potential.

Yet contributions need not be limited to traditional employment: leveraging their professional and life experiences, seniors can sustainably enrich our communities, be it as mentors, advisers or volunteers. Policy should prioritise purpose-driven engagement over purely economic metrics, ensuring our seniors remain valued contributors rather than passive beneficiaries.

Ageing need not be a crisis for Hong Kong. Seniors are not budget items; they have the power to transform Hong Kong. Rather than obsess every year over where and how much to cut in the budget, we should think about how we can invest in safer and more inclusive communities to enable our seniors to participate and contribute more effectively.