How CPF compares with other pension schemes around the world

[neddy]

Global leaders in retirement savings

1. Denmark ............... 82.9
2. Netherlands ............... 78.9
3. Australia ............... 75.7 <
4. Sweden ............... 73.4
5. Switzerland ............... 73.3

6. Canada ............... 69.2 <
7. UK ............... 64.8
8. Chile ............... 63.3
9. USA ............... 59.0
10. Poland ............... 58.2

Top 10 Average: 61.0


11 Singapore ............... 56.7 <
12 France ............... 54.4
13 Germany ............... 54.2
14 Japan ............... 43.9
15 India ............... 43.4
16 China ............... 42.5



http://www.globalpensionindex.com/w...-a-brief-review-of-each-country-mmgpi2011.pdf


Australia 2011

Australia’s retirement income system comprises a means-tested age pension (paid from general government revenue); a mandatory employer contribution paid into private sector arrangements (mainly DC plans); and additional voluntary contributions from employers or employees paid into these private sector plans.

The following table shows Australia’s position when compared to the 15 other countries and some of the indicators that either scored relatively well or poorly.

_ Score Ranking
Overall Index............... 75.0 2nd

Sub-indices
Adequacy............... 73.6 4th
Sustainability............... 71.4 2nd
Integrity............... 82.4 4th



Canada 2011

Canada’s retirement income system comprises a universal flat-rate pension, supported by a means-tested income supplement; an earnings-related pension based on revalued lifetime earnings; voluntary occupational pension schemes (many of which are defined benefit schemes); and voluntary individual retirement savings plans.

The following table shows Canada’s position when compared to the 15 other countries and some of the indicators that either scored relatively well or poorly.

Score Ranking
Overall Index............... 69.1 5th

Sub-indices
Adequacy............... 74.1 2nd
Sustainability............... 55.8 7th
Integrity............... 79.7 8th


Singapore 2011

Singapore’s retirement income system is based on the Central Provident Fund which covers all workers, including most public servants. Some benefits are available to be withdrawn at any time for specified housing and medical expenses with other benefits preserved for retirement. A prescribed minimum amount is required to be drawn down at retirement age to buy a lifetime income stream.
The following table shows Singapore’s position when compared to the 15 other countries and some of the indicators that either scored relatively well or poorly.

_ Score Ranking
Overall Index............... 56.7 11th

Sub-indices _
Adequacy............... 41.9 15th <---- 2nd poorest among the 16 countries
Sustainability............... 60.9 6th
Integrity............... 74.5 10th

 

[mojito]

Not surprised there. CPF is used to pay for medical care and housing on top of providing a pension for retirees. In western countries like Canada and Australia, I hear the government co-pays are larger percentage of the final bill for medical care. Certainly an area worth examining for aspiring lawmakers.

 

[axe168]

I withdrew my CPF 8 yrs ago.. invested in some chickens in Australia.. now chickens (lay eggs) fetch me an equity of 300%. Money hold by the you is far better than 3rd parties !

Not surprised there. CPF is used to pay for medical care and housing on top of providing a pension for retirees. In western countries like Canada and Australia, I hear the government co-pays are larger percentage of the final bill for medical care. Certainly an area worth examining for aspiring lawmakers.

 

[yaosiu]

You try to squeeze inside a fully packed mrt when you are old.

See whether you will come out alive.

 

[banglat]

Why are some people in the cpf scheme and others in the pension scheme?

Can anyone render an explanation?

 

[Fook Seng]

Why are some people in the cpf scheme and others in the pension scheme?

Can anyone render an explanation?

Used to have only the pension scheme. The Govt then found out that the CPF scheme was better for the Govt. So they tried to convert everyone to the CPF scheme but unfortunately for the Govt, some people had job agreements that tied it to giving them a pension scheme. That is why there are two schemes coexisting.

 

[UncleTOBY]

CPF is a failure. I've still much money left inside still cannot take out.