As of mid-2026, Hong Kong older adults will be able to collect their social security allowances and benefits on the Chinese mainland, after the special administrative region government teamed up on Friday with two State banks to facilitate cross-border transfers.

The city’s Social Welfare Department signed memorandums of understanding with the Bank of China (Hong Kong) and the Industrial and Commercial Bank of China (Asia) to enable the cross-border disbursement of cash assistance to about 28,000 Hong Kong seniors residing in Guangdong and Fujian provinces.

Welfare benefits enlisted for such a direct cross-border payment method include those delivered through the Comprehensive Social Security Assistance, the Old Age Allowance, and Old Age Living Allowance.

The optimization is expected to spell the end of the current logistical hurdle, whereby recipients must cover the cost and hassle of transferring their monthly allowances from Hong Kong bank accounts for use on the mainland.

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Witnessing the signing, Hong Kong Secretary for Labour and Welfare Chris Sun Yuk-han called the upcoming direct remittance a “last mile” breakthrough, adding that the existing process, while “apparently smooth enough”, can be revamped for greater efficiency.

“The most ideal, simplest method” is for the SAR government to transfer allowances and money assistance directly into the eligible Hong Kong residents’ mainland accounts.

Darryl Chan Wai-man, deputy chief executive of the Hong Kong Monetary Authority, who also officiated at Friday’s event, expressed confidence in the initiative as a “faster and more direct solution” for disbursement arrangements for portable cash assistance, thanks to the two banks’ extensive presence on the mainland and cross-border serviceability of “great experience and strength”.

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The Bank of China (Hong Kong) and the Industrial and Commercial Bank of China (Asia) boast a combined network of nearly 3,800 branches in Guangdong and Fujian, Chan said.

Hong Kong older adults living in Guangdong and Fujian provinces are still eligible to apply for the SAR’s CSSA and old-age allowances under special programs — initiatives responding to a growing number of elderly people opting for retirement across the border.

As of late September, around 29,000 Hong Kong seniors based in Guangdong or Fujian had applied to collect Hong Kong’s elderly benefits.

The CSSA offers a monthly HK$3,995 ($513) to HK$7,225 subsidy to people aged 65 and older who complete financial tests, depending on their health.

For those 65 and older who met the asset limits, the Old Age Living Allowance offers HK$4,250 per month to applicants, while seniors 70 and older can unconditionally apply for an additional HK$1,640 monthly allowance.

Contact the writer at wanqing@chinadailyhk.com