S'poreans need to learn how to stretch their savings:
Lim Swee Say
By Pearl Forss, Channel NewsAsia | Posted: 24 June 2007 1938
hrs
SINGAPORE: Singaporeans will not be left in a situation where they
have no jobs and are not able to withdraw their CPF savings, said
Minister in the Prime Minister's Office Lim Swee Say at a community
dialogue on Sunday.
For those who are now in their 50s, the proposal to allow
withdrawal of their CPF minimum sum of S$100,000 at the age of 65
came as a hard hit, said grassroots leaders.
Currently, Singaporeans can withdraw the sum at age 62.
Michael Chwee, Tanjong Katong Neighbourhood Committee, said: "After
the age of 55, are there anymore CPF contributions? If you want the
worker to work longer, we must have extra savings. I feel the
government is not really in touch with the ground when it makes
policies."
Mr Lim, who is also the Secretary-General of NTUC, said: "Don't
speculate and assume the worse that the government is going to
keep the CPF money for many years to come. That is not the scenario
the government is working towards."
The scenario that the government is working towards is an economy
where older workers can be re-employed in the same job, part-time
or with a slightly different job scope.
But Singapore has a long way to go as the employment rate of those
aged 60 to 64 is currently at 42 percent.
Mr Lim said: "25 years ago our life expectancy was less than 70
years old. Today, 25 years later, our life expectancy is about 80
years old. I'm very sure that 25 years from now, our life
expectancy could be 85 or 90 years old. So we have to ask these
very tough questions... will Singaporeans have enough savings and
earnings to see him or her through this longer life span? If the
answer is yes, then none of us need to worry, but I don't think the
answer is yes.
"If you continue to have an income, you can defer drawing your CPF
by another two to four years. This way, by the time you really stop
working, there will be more money in your CPF. You can also earn
interest in your CPF account."
Residents also expressed concerns about means testing for
hospitalisation and whether or not the middle class will be
squeezed out of C class and B2 wards.
Mr Lim said the Health Ministry is still working on the details for
this but Singaporeans need to accept that the needy require more
subsidies.
He said public healthcare costs are going up but government revenue
may not increase at the same pace, hence there is a need for means
testing to allocate limited resources more suitably.
Besides, he added, Singaporeans should be familiar with this
concept as only families who earn less than S$8,000 a month qualify
for public housing subsidy.
That is a form of means testing that is not disputed as much as
healthcare.
A tightening labour market and how strict laws on employing foreign
workers are affecting businesses were the other concerns that were
raised.
One of the residents said: "I'm speaking on behalf of some small
business retail shops and restaurant owners. They claim that they
do not get work permit for foreign workers and due to this, they
have to hire illegal workers."
Mr Lim said more foreign workers will be allowed in, but raising
the employment of older workers, low-income workers and getting
housewives to return to the workplace are top priorities. An overly
liberal approach to work permits may impede efforts in these
areas.
