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.
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Panel on longevity insurance issues to take in public views
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
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