A Good Thing, But ...

Source : TODAY, Thursday, September 6, 2007

State May Propose Annuity Scheme But Let People Decide

Letter from JIMMY HO KWOK HOONG

I REFER to the article, “Annuities: It’s risk-sharing among all” by Mr Christopher Tan (Aug 31).

Having an annuity built into the CPF scheme provides one with security during old age and it’s not a bad idea after all. What might make some people unhappy, I believe, is the compulsory nature of the initiative.

CPF monies belong to the people and the Government holding such funds in trust for them must not insist on how they should be spent. The State may propose a CPF-annuity scheme but eventually, people of a democracy must be given the final say.

Just because some Singaporeans do not know how to plan for themselves does not imply that we have to compel the whole nation into accepting a scheme. I see Singaporeans as generally mature and literate individuals who are well able to think, plan and decide things for themselves.

The next obstacle to public acceptance of the proposal is the unrealistic minimum age limit of 85 for one to enjoy the annuity.

Since the present life expectancy of Singaporeans is 80 years, we should fix the annuity payout age at 70, to ensure that all those who participate in the annuity, on the average, enjoy 10 years of relief payment before death.

Finally, the proposed monthly payout, ranging from $250 to $300, is simply inadequate. In 20 to 30 years, as a Singaporean lives towards 80, even $300 per month means that one would have to lead a “dog’s life”, given future living standards and costs.

This is assuming that most medical costs are heavily subsidised by the Government.

Country can play larger role when helping octogenarians

Letter from LIM BOON HEE

I REFER to the letter, “Proposed annuity scheme could benefit you just as much as the next person” (Sept 4).

How many years can one expect to live after 85? Or for that matter, how many will be fortunate enough to see this ripe old age before the compulsory annuity starts to pay out?

Therefore, let’s not bark up the wrong tree because it is not about compassion, cohesiveness or unwillingness to share, but expecting the country to look after me for those two to three years should I live past the age of 85.

We should not be asking for money from the minimum sums of less fortunate short-lived Singaporeans who are forced to contribute to a common pool to feed those with longevity genes. I would rather they keep it for their next-of-kin.

Having toiled and contributed taxes for decades, I do not think it is too much to ask for a hand-out from one’s motherland if one lives past 85 and has no money to live on.

The true principle of “One People One Nation” does not apply only to Singaporeans helping fellow Singaporeans with CPF money. The State can take on a larger role helping the octogenarians in our midst.