Secretary for Labour & Welfare Dr Law Chi-kwong today said that the challenges in combining the normal and higher Old Age Living Allowances are surmountable.

Dr Law made the remarks a day after Chief Executive Carrie Lam proposed to combine the two Old Age Living Allowances with a standard monthly payment rate of $3,585 and raise the asset limit to $500,000.

He said: “The major consideration of the Old Age Living Allowance is that it has an income limit. Also, it has an asset limit, although this time we proposed to raise the asset limit to $500,000.

"We do consider in the long run with people's growing savings, including the Mandatory Provident Fund Schemes, the percentage of senior people who are eligible for the Old Age Living Allowance will drop slightly and slowly.

"So, in terms of the long-term sustainability, it is a challenge but it should be surmountable."