Panel on longevity insurance issues to take in public
views
By S Ramesh, Channel NewsAsia | Posted: 01 September 2007 1627
hrs
SINGAPORE : The committee that is going to study the issue of
longevity insurance for Singaporeans will consult widely and take
in public views, says Manpower Minister Ng Eng Hen.
More details on the committee will be announced in Parliament later
this month when Dr Ng delivers his Ministerial Statement detailing
the CPF changes.
Dr Ng was responding to questions on Saturday from Channel NewsAsia
at the sidelines of the Army Open House.
The issue has been a hot topic since the Prime Minister spoke on
the proposed compulsory annuity and ageing issues in his National
Day Rally speech.
Dr Ng says: "There have been basically two reactions, one which is
not quite being able to understand it. Some misunderstand how this
indeed works, some understand but actually want more protection.
Some Singaporeans have said, I regret, they are older now, maybe in
their late 70s and they regret they did not buy this longevity
insurance...And they are actually asking how can I enter this
scheme when you start it. So what it tells us there are varying
needs."
Dr Ng feels the best way forward is a longevity insurance for
everyone which is flexible and affordable.
And coming up with a product that meets these criteria is a task
for the committee that will study the issue.
Dr Ng says: "I want the committee to take in public views. They
should have an established channel for the public to give their
views about what their needs are. They must also consult industry
experts, so how do you stretch this premium you have put for this
longevity insurance so that it is as affordable as possible but you
can stretch the dollar so that it is as effective as
possible."
Members of Parliament have also been addressing the issues during
their dialogue sessions and Dr Ng says from the feedback he's been
receiving, Singaporeans generally understand and accept the need to
address the challenges being posed by an ageing population in
Singapore.
But he says some of them are a bit concerned whether they can work
longer.
Dr Ng says: "They say that if they can work longer, they don't mind
the (later) draw-down age because that means they have a longer
payout period. We have to spend the next few months patiently
explaining it in simple ways they can understand. It is a lot of
details and so this what we will do over the next few
months."
The tripartite committee working out the guidelines for the
re-employment legislation expects to come up with a set of
guidelines that is acceptable to all within the next two years. -
CNA/ch
why waste time? afterall THEY "knows" what is best for us.
