Lets recap what I posted earlier:
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Aged: Penniless in a land of plenty
(The Star)
23 July 2007 by Seah Chiang Nee
For many elderly folk, Singapore is a tough place to live in. Many
senior citizens just do not have the skills for the modern
economy.
WITH better living, Singaporeans are enjoying one of Asias longest
life expectations, averaging 82 years but its not everyones
cause for celebration.
In fact, for half the retirees with insufficient Central Provident
Fund (CPF) savings, it could be a terrible burden. Singapore is
also one of the regions most expensive cities to retire in.
The government obviously sees the downside of a citizen who retires
at 62 and lives for two decades without any income.
Last week, it served notice of its intention to push the retirement
age by three years to 65. In fact, where possible, it prefers
citizens to carry on working until 70.
However, there is some contention over the prospect of a delay in
the withdrawal of the minimum CPF savings from 62 to 65. .
CPF is the republics mandatory retirement fund in which a member
can withdraw a portion at 55, but has to leave behind a minimum
sum. From this, he or she receives a monthly payout from age
62.
This sum now stands at S$96,000 (RM220,800) and must be gradually
topped up to S$120,000 (RM276,000) by 2013.
I think it is quite reasonable to raise it to 65 if our objective
is to raise the employment rate of this group of people, said the
minister overseeing issues on ageing, Lim Boon Heng.
He is apparently preparing the people for the inevitable.
Twenty-five years ago when retirement and the CPF withdrawal age
was 55, it was a different world. At that time life expectation was
70 years, 12 years less, so a change comes as no surprise.
Public reaction has been strong. CPF is one of the most cherished
things in a Singaporeans life, and any talk of delaying withdrawal
is bound to bring out strong emotions.
(In the 1984 general elections, the governments vote fell by a
hefty 12.4% just because of a rumour that repayment would be
delayed beyond 55.)
It is understandable. For many elderly folk, Singapore is a tough
place to live in. In the first place, many do not have the skills
for the modern economy.
After a lifetime of work, they want to take charge of their savings
and spend it as they wish. The trouble is that while the majority
is financially conservative, others make a mess of it and get into
trouble.
Many are simply not capable of managing such a large fund on their
own. Either they become fair game for cheats or they gamble or
spend lavishly on wine or women.
When the money is gone, they become homeless or penniless, cursing
the government for not looking after them, said a small
businessman.
A year ago I met a weeping gentleman in a hospital room being
consoled by two nurses. A China woman whom he had befriended had
cheated him of S$60,000 (RM138,000) of his CPF savings, he told the
nurses.
In a fast-paced city very much preoccupied with the bottom line,
the elderly get less respect and care than they deserve. In failing
health and overwhelmed by Singapores new technologies, many are
still toiling in menial work.
Liberal-minded Singaporeans decry two perceived wrongs. First,
senior citizens are given only the minimum level of government
financial help considering the states enormous wealth.
Second, they resent the governments control on peoples retirement
money.
Something must be fundamentally wrong with society if one cannot
retire after working for 30 to 40 years, exclaimed a young
professional.
Unlike in many western countries, Singapore has little or no social
security or welfare. These factors partly explain the citys low
birth rates.
Living in a highly competitive nation has helped to turn
Singaporeans into some of the most pessimistic people in the region
when it comes to retirement savings.
The Thais have the most sanguine feelings about retirement,
according to a survey by American International Assurance
(AIA).
Some 61% of Thais believe they will have sufficient funds to
retire, based on current savings patterns.
This contrasts with just 24% of those surveyed in Hong Kong, 47% in
Malaysia and 27% in Singapore.
While the government wants people to work longer, until 70, many
Singaporeans actually want to quit earlier.
A study by a financial protection player, AXA Group, showed that
Singaporeans, on average, consider the ideal retirement age as 54,
the earliest among the 15 countries surveyed.
Those in Hong Kong, Canada and Australia would opt to retire at 55,
while the Japanese want to wait till they are 61.
The ruling Peoples Action Party constitution still declares it as
a democratic socialist party, but in the past 40 years, the
socialist part of it has been in decline.
For their part, Singaporeans are learning to depend less on the
government for their needs, including jobs and cheap public
services
