Set Payout Age For Compulsory Annuities At 80 But Raise Premiums: SM Goh

Source : Channel NewsAsia, 21 October 2007

Senior Minister Goh Chok Tong has suggested setting the payout age for compulsory annuities at 80 instead of the proposed 85.

He acknowledged that many Singaporeans are still resistant to the concept of compulsory annuities as they think they will not live beyond 85 years old.

So he suggested lowering the payout age from the proposed 85 years old to 80.

This way, Mr Goh said, it might win more people over to the idea of compulsory annuities.

But premiums will be increased accordingly.

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Set payout age for compulsory annuities at 80 but raise premiums: SM Goh

"If given a choice, I would choose to pay a higher premium and an earlier payout age of 80. Like most Singaporeans, I am a little kiasu," said Mr Goh.

A member of the public agreed with Mr Goh's idea, saying, "We don't mind paying a bit more premium, then we get (our payout) earlier, have more money to spend."

But, another member of the public said: "80 (years old) is too late; some don't even live up to that age, so it's better for payouts to start earlier."

Speaking on the sidelines of another event, Manpower Minister Dr Ng Eng Hen said the possibility of a lower payout age was discussed in the recent debate on CPF reforms.

Dr Ng said: "People have different needs. Some people want to have a payout earlier - 80 as Senior Minister suggested, or even 75. Some people want it later, so they have less dependence on longevity insurance."

Dr Ng said the National Longevity Committee would consider the various options.

Their report is expected to be out early next year.

Mr Goh was speaking at the graduation ceremony for YAH! Community College which promotes lifelong learning.

And, age was the last thing on the minds of the senior citizens who received their graduation certificates from the Senior Minister.

To make learning even more interesting, the college has teamed up with China's Tsinghua University of Third Age to offer exchange programmes for students.

This is something which the 200 graduates, including a 62-year-old, can look forward to.

"I only have Secondary 2 education, so taking this course is like a dream come true, like graduating from university. I'm very happy. I used to be a quiet person, but now I've learnt to socialise more," said Mr Lee Keng Seong, a graduate of YAH! Community College. - CNA/ir