Originally posted by kilua:
I say its a crazy scheme because it doesnt consider if [b]EVERY
Singaporean needs an annuity. For those who have already
done their planning, annuity actually erodes their returns.
What about those who have already fully paid up their flat and are
receiving rental from the flat? How would an annuity help
them?
I am sure these people would be thankful to PAP in future for
locking up their money when they already have enough.[/b]
A perpetuity (giving you an annuity as long as you are still
alive) might not be worthwhile if you have a family history where
family members don't live past 80.
An annuity might be better because you get to enjoy $700 instead of
$500 every month.
The life expectancy of Singaporeans are around 78-82, females on
average live longer than males for about 4 years.
So it's more worthwhile for women to sign up for the
perpetuity.
Whether you buy annuities or perpetuities, it's really none of the
government's business, because they are not paying for it. At the
end of the day, you have to pay from your own pocket.
The reason they are coming up with this policy is, they don't want
to be responsible for this scenario should it materialise in the
future. So they are throwing the ball into your court first.
