... here's more minced reportage....
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Independent surveys confirm S'poreans living
longer
WHEN Singaporeans were told that more than half of those who live
to age 62 will live beyond 85, many raised their eyebrows in
disbelief.
But independent actuaries from American company Trowbridge
Deloitte have 'more than verified' this data, with studies that
show Singaporeans are indeed living longer.
Separate surveys also indicate there was 'no robust data' to
conclude the rich live longer than the poor - and thus stand to
gain more from a compulsory annuity plan Singapore will be
introducing for old-age support.
These two outcomes were made public on Wednesday by Professor
Lim Pin, who chairs a committee that had commissioned the studies
to address the scepticism among some Singaporeans of the need for
the annuity plan.
He made the disclosures when he gave the media a preview of the
shape of the upcoming annuity plan. His 18-member,
government-appointed committee is tasked to draw up a basic annuity
scheme for Singaporeans.
In estimating a life table for annuity participants, Trowbridge
Deloitte's calculations support government data that Singaporeans
are living longer, he said.
More details will be revealed on Feb 12 when Prof Lim's
committee makes public its report.
Last year, when the Government announced plans for mandatory
annuities, it explained they were necessary because many are living
beyond 85 years and they need to have money then.
Some Singaporeans doubt it. Also, they feel the poor will end up
subsidising the rich, who may live longer because they can afford
better health care.
To settle the issue, the actuarists were asked to do a survey.
'And they came to us saying that so far, no robust data supports
that difference - not robust enough to have any differentiation (in
premiums),'' said Prof Lim.
'So what we will recommend is perhaps, we'll keep an eye on
that. If indeed... there is robust data, we have to modify the
scheme,'' he added.
The committee also sought people's views. One such person is
wealth management consultant Arul Selvam Govindasamy, 35, a member
of national feedback group Reach.
He suggested making the premiums refundable. 'With our
stressful lifestyles and the unhealthy food we consume, I think our
generation will not live as long as the current elderly,' he
said.
The idea was among five key recommendations made by the
committee. NTUC has endorsed them, said Prof Lim.
When contacted, NTUC deputy secretary-general Halimah Yacob
described the recommendations as 'positive' and 'sound'.
Particularly pleased with the refundable option, she said: 'Many
Singaporeans hope to leave something for their families when they
pass away, and the new proposal addresses that concern.'
Union leader Lim Kuang Beng, while supporting the plan, called
for greater attention to be paid to non-CPF contributors who will
be left out. 'Often, they are the ones who need most help in their
retirement,' he said.
Feeling the same way, Mr Leong Sze Hian, president of the
Society of Financial Service Professionals, said the well-off will
buy their own pension plans.
This leaves the risk-pooling in the planned annuity to a smaller
and poorer group of Singaporeans, and will jack up premiums, he
said.
Manager David Cheong, 37, like many of the seven interviewed,
find the recommendations are 'a slight improvement on the
scheme'.
'At the end of the day, I believe people should be given
the freedom to do what they want with their money, rather than have
it tied down.'
