Selected groups may be exempted from compulsory annuities

Lin Yu SG · 2007-09-10T22:20:31+00:00

i’m a little outdated, how much must we pay per month for the annuities? pay until 85 mah? how much we get each month after 85? what happens to the remaindin...

Lin Yu SG

Selected groups may be exempted from compulsory annuities
By Valarie Tan, Channel NewsAsia | Posted: 09 September 2007 2003 hrs

SINGAPORE: Not all Singaporeans will need to buy compulsory annuities when they turn 55 years old.

Those with chronic diseases may be excluded, since they may not live long enough to enjoy the life insurance payouts.

This was revealed by the Minister-in-Charge of aging issues, Mr Lim Boon Heng, at a seminar organised by the Community Development Councils (CDCs) on Sunday.

One in six Singaporeans will be an elderly by 2030, and to ensure that everyone has enough money for their sunset years, the government will make it compulsory for all Singaporeans currently below 50 years old to buy annuities when they turn 55.

This was announced by Prime Minister Lee Hsien Loong during the National Day Rally.

Such a scheme will then pay them a monthly allowance from the time they turn 85 till they pass on.

Many agree that having an annuity scheme will help the majority of Singaporeans who are expected to live till 85.

But sadly, not everyone is blessed with longevity, especially so for people down with severe chronic diseases and disabilities.

Mr Lim said a committee would be set up by the Manpower Ministry to study how the annuity scheme could be made more effective.

He said: "Those suffering from chronic illnesses do not expect to live so long, therefore (they) could be excluded. There are also some people who are already buying annuities do we need to have double coverage? The answer obviously is 'no'. So those who are adequately covered and the policy which they bought fulfils a certain requirement may also be exempted."

Alvin Lim, CEO of Bizlink Centre, said: "There are selective groups whose average lifespan would not be the same as the majority population. For example, people with muscular dystrophy will not live that long, so for them to contribute to a scheme like that would make them feel discriminated by the society at large. Worse still, this group of people is, on the average, from the lower income group."

More details on the scheme are expected when Parliament sits on 17 September.

- CNA/so

is 080907 the cause of the change of heart?

robertteh SG

It would appear that there is a change of heart about the scheme probably due to the open expression of unhappiness by their wear- black protest by more than 600 people at centre point on 8.9.2007.

This case once again demonstrates that leaders have a tendency to make decisions hastily on some pragmatic or necessary rationale without much thought for the people affected and without considering the larger perspectives of all the issues.

They may call themselves talents but the fact is they are like the primary school kids who think of problems as two dimensional when problems are multi-dimensional in real life affecting more than simplistic economics or demographics. In order to govern the country for the greatest benefit of the greatest number once again my advice is for ministers to study the fuller impact of policies like the social, cultural, moral aspects which they have often as in this case taken for granted.

If they want to make good decisions which are going to benefit the people they have to consider the people who are dying and those who do not need the annuities but who just want to enjoy a better retirements with a bit more cash available in their twilight years as well as those who do not have long to live.

What a learning experience for Lim Boon Heng who now showed up his inadequacy for the empteen time as clearly if he is a talent he should not have failed to consider all these before recommending the scheme and making PM Lee lose face.

Poh Ah Pak SG

Could be a propaganda ploy.

ditzy SG

Aiyah, used to it already lar. Laughing

eagle SG

let them talk ba. same case as casino

Melvin Tan SG

From what I know, everything will have to be finalised at the next Parliament sitting next Monday.

Regards

qlqq9 SG

Yes, I think the event of wearing black on 8 sept has a little impact. Anyway, I am still not happy with the way they are handling this whole annuity issue. Money is ours, let us decide.

tripwire SG

money is indeed ours.... but money has a face value and a real value...

what the govt is trying to do... is to preserve the real value of your money so that you dont loose out when you need to use it.

the face value will never change... your $100,000 would remind on paper $100,000. but the real value of your $100,000 is influence by the demand and supply of the currency in the local and global market.

the govt can easily allow everyone to draw out every single cent in the CPF... but that would result in a tsunami of money in the market... resulting in massive inflation that reduce the real value of your money to probably no better then the indonesian rupiah. Mr. Green

qlqq9 SG

As for the govt why they are doing so, it is more than meets the eye.

ndmmxiaomayi SG

In other words, they are saying some Singaporeans are so unhealthy that they will suffer from some chronic diseases of sort by 55 years old.

qlqq9 SG

Why didn't they also take into consideration there will be people who after buying the annuity suffer from sicknesses? I still think this annuity thing is nothing but crap. There are others who don't buy annuity but have sufficient savings for their old age.

ndmmxiaomayi SG

If they take everything into consideration, their pockets will shrink, so they won't bother considering until we have new problems. Just like the windows falling off problem.

kramnave SG

Sufficient savings after 85 and beyond ? More likely contributions from family. Allowances given by children etc...

qlqq9 SG

This is called shirking responsibilites.

tripwire SG

usually govt have many considerations.. but they choose to simplify the matter and explain to the people in the most simplistic and direct manner... to allow for greater understanding among the greater portion of the populace.

not every singaporeans has a distinction in economics or public finance.. going into depth on such matters would only complicates the whole thing and possibly led to greater misunderstanding.

even among economist there are conflicting views... so... we cant blame them from trying to speak the "people's language".

tripwire SG

actually... its not wat they(the govt) says... its how nature works... if you are old and you dont age and die... guess what our newborns would be eating? Laughing

and there are many doctors in the govt.. i am sure they knew from the working experience.....

if you dont believe them.... take a walk at the hospital wards... Mr. Green

tripwire SG

the policies are still in infancy... there will be many chances to remedy and smooths the rough edges....

its important for singaporeans to voice their concerns, our govt aint no saints... it's good that singaporeans are speaking up... and you may never know... someone might just light a lamp in our minister head... and benefits everyone. Mr. Green

ndmmxiaomayi SG

Errr.... hospital is my third home. Laughing

But this is hurtful. At least suggest something better rather than this. Rolling Eyes

ndmmxiaomayi SG

The thing is, the current we are supplying is not enough. It goes through, lights up for a while and then no more light. Laughing

tripwire SG

actually... i feel that families with many childrens (3 or more), should be exempted from the annuity excercise...

i believe there is a children tax in russia... where the govt tax the childless and use it to help russian couples with children.... maybe we should look into it too.