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Coffeeshop Chit Chat - The PAPee Swindle of Sinkees CPF</TD><TD id=msgunetc noWrap align=right>
Subscribe </TD></TR></TBODY></TABLE><TABLE class=msgtable cellSpacing=0 cellPadding=0 width="96%"><TBODY><TR><TD class=msg vAlign=top><TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR class=msghead><TD class=msgbfr1 width="1%"> </TD><TD><TABLE border=0 cellSpacing=0 cellPadding=0><TBODY><TR class=msghead><TD class=msgF width="1%" noWrap align=right>From: </TD><TD class=msgFname width="68%" noWrap>Fkapore <NOBR></NOBR> </TD><TD class=msgDate width="30%" noWrap align=right>Oct-17 9:54 pm </TD></TR><TR class=msghead><TD class=msgT height=20 width="1%" noWrap align=right>To: </TD><TD class=msgTname width="68%" noWrap>ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> (1 of 2) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft rowSpan=4 width="1%"> </TD><TD class=wintiny noWrap align=right>22872.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>Singapore scores low in global pension index
October 18, 2009 by Manisha
Filed under Top News
from Temasek Review
From our Correspondent
Singapore has done relatively poorly in a new survey on one of the toughest policy issues facing nations around the globe — how to ensure adequate income for the growing numbers of retirees.
The republic is ranked eighth in a new global index that compares the retirement income systems of 11 countries — but it beat Japan, China and Germany.
There are three Asian countries in the inaugural Melbourne Mercer Global Pension Index, which was released recently by consultancy firm Mercer.
The index aims to provide a clearer insight into how the various countries are grappling with economic and social issues related to retirees’ income.
Many nations, including Singapore, face having a higher proportion of retirees because of low birth rates and longer life expectancy. That means fewer taxpayers relative to retirees.
The Netherlands got the top ranking with a score of 76.1 out of a maximum of 100, followed by Australia (74), Sweden (73.5) and Canada (73.2). Singapore scored 57, below the average score of 61.4.
The index weighed more than 40 indicators that are regarded as desirable in retirement income systems. For instance, the indicator with the greatest weighting measures the adequacy of benefits or how much income is available to a retiree.
Ben Facer, Asean Business Leader for Mercer’s retirement, risk and finance business, said that while Singapore’s pension system is very different from the other countries included in the study, it shares many of the same challenges.
The report recommended that Singapore’s system could be improved by:
• Raising the minimum level of support available to the poorest retirees.
• Continuing to increase the prescribed minimum that must be set aside for retirement purposes.
• Increasing the percentage of contributions required to be saved for retirement.
• Encouraging additional savings from above-average income earners.
• Increasing the labour force participation rate among older workers.
In Singapore, the Central Provident Fund (CPF) Minimum Sum Scheme provides members with monthly payouts to support a modest standard of living in their old age.
Currently, older CPF members may participate in the recently launched CPF Life annuity scheme or buy approved life annuities with their Minimum Sums to give them a guaranteed life income.
Alternatively, they may place their savings with approved banks or continue to keep the money with the CPF Board.
The Minimum Sum left with the board earns a 4 per cent annual interest rate till December next year. The sum was set at S$80,000 (RM192,000) in 2003 and will be raised gradually until it reaches S$120,000 (in 2003 dollars) in 2013. These amounts will be adjusted yearly for inflation. The prevailing Minimum Sum is S$117,000.
Financial experts have consistently advised Singaporeans not to depend solely on their CPF savings for retirement.
“Do your own retirement planning by saving as early as possible as the CPF payouts may be insufficient,” said Patrick Lim, associate director at financial advisory firm PromiseLand Independent.
Mercer said the countries with the lowest ranking retirement income systems were Japan, with a score of 41.5, China (48) and Germany (48.2). It said they were a notch above the worst rating but needed to address major weaknesses — or risk their systems being unsustainable.
No country in the index was classed as having an A-grade system — a score over 80 — proving that even the world’s most advanced pension and superannuation models still need refinement to ensure they are robust enough to support the world’s rapidly ageing population.
Dr David Knox, Worldwide Partner in Mercer’s retirement, risk and finance consulting business, who oversaw the study, said global results indicated a need to address common challenges.
“The fact that no country achieved an A-grade classification confirms that no one system is perfect or currently robust enough to withstand the challenges presented by an ageing population,” he said.
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October 18, 2009 by Manisha
Filed under Top News
from Temasek Review
From our Correspondent
Singapore has done relatively poorly in a new survey on one of the toughest policy issues facing nations around the globe — how to ensure adequate income for the growing numbers of retirees.
The republic is ranked eighth in a new global index that compares the retirement income systems of 11 countries — but it beat Japan, China and Germany.
There are three Asian countries in the inaugural Melbourne Mercer Global Pension Index, which was released recently by consultancy firm Mercer.
The index aims to provide a clearer insight into how the various countries are grappling with economic and social issues related to retirees’ income.
Many nations, including Singapore, face having a higher proportion of retirees because of low birth rates and longer life expectancy. That means fewer taxpayers relative to retirees.
The Netherlands got the top ranking with a score of 76.1 out of a maximum of 100, followed by Australia (74), Sweden (73.5) and Canada (73.2). Singapore scored 57, below the average score of 61.4.
The index weighed more than 40 indicators that are regarded as desirable in retirement income systems. For instance, the indicator with the greatest weighting measures the adequacy of benefits or how much income is available to a retiree.
Ben Facer, Asean Business Leader for Mercer’s retirement, risk and finance business, said that while Singapore’s pension system is very different from the other countries included in the study, it shares many of the same challenges.
The report recommended that Singapore’s system could be improved by:
• Raising the minimum level of support available to the poorest retirees.
• Continuing to increase the prescribed minimum that must be set aside for retirement purposes.
• Increasing the percentage of contributions required to be saved for retirement.
• Encouraging additional savings from above-average income earners.
• Increasing the labour force participation rate among older workers.
In Singapore, the Central Provident Fund (CPF) Minimum Sum Scheme provides members with monthly payouts to support a modest standard of living in their old age.
Currently, older CPF members may participate in the recently launched CPF Life annuity scheme or buy approved life annuities with their Minimum Sums to give them a guaranteed life income.
Alternatively, they may place their savings with approved banks or continue to keep the money with the CPF Board.
The Minimum Sum left with the board earns a 4 per cent annual interest rate till December next year. The sum was set at S$80,000 (RM192,000) in 2003 and will be raised gradually until it reaches S$120,000 (in 2003 dollars) in 2013. These amounts will be adjusted yearly for inflation. The prevailing Minimum Sum is S$117,000.
Financial experts have consistently advised Singaporeans not to depend solely on their CPF savings for retirement.
“Do your own retirement planning by saving as early as possible as the CPF payouts may be insufficient,” said Patrick Lim, associate director at financial advisory firm PromiseLand Independent.
Mercer said the countries with the lowest ranking retirement income systems were Japan, with a score of 41.5, China (48) and Germany (48.2). It said they were a notch above the worst rating but needed to address major weaknesses — or risk their systems being unsustainable.
No country in the index was classed as having an A-grade system — a score over 80 — proving that even the world’s most advanced pension and superannuation models still need refinement to ensure they are robust enough to support the world’s rapidly ageing population.
Dr David Knox, Worldwide Partner in Mercer’s retirement, risk and finance consulting business, who oversaw the study, said global results indicated a need to address common challenges.
“The fact that no country achieved an A-grade classification confirms that no one system is perfect or currently robust enough to withstand the challenges presented by an ageing population,” he said.
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