Page 23 - Accelerating Research and Impact - Issue 7

Eligible older adults do not claim cash welfare subsidies
Arecent survey conducted by Lingnan University together with the Education University of Hong Kong finds that 11% to 14% of older adults eligible for the current three cash welfare subsidies do not claim them, mainly because of the complexity of application procedures, high transaction costs and perceived stigma.
The most common reason why the elderly do not claim government subsidies for Old-age Comprehensive Social Security Assistance and Higher Old Age Living Allowance is the high perceived transaction costs, i.e. the time and effort spent in the claiming process itself, filling in forms, documentation, etc. Respondents likely not to claim are those who perceive the application procedure as complex, the benefits being insufficient, and were concerned about information costs, i.e. the time and effort needed to find information about the benefits. Participants perceiving personal stigma or stigmatisation by the public in receiving benefits are also likely not to claim.
Among those eligible but had not claimed the Normal Old Age Living Allowance (Normal OALA), transaction costs were again the strongest predictor of non take- up. In contrast, the perceived insufficiency of the benefit, information costs, personal stigma, and stigmatisation by the public were not significantly associated with the decision to apply for the Normal OALA.
Project leader Prof Stefan KÜHNER, Associate Professor of the Department of Sociology and Social Policy, suggested the HKSAR Government to adopt policies and measures to simplify the administrative procedures of the existing cash benefit programmes.
RESEARCH HIGHLIGHTS 20
For psychological cost,
the Government should rebrand welfare subsidies for older adults to minimise the perceived stigma and improve the public image of these programmes.