Older Workers - Lets discuss about them

[Lai CF]

Government may make buying annuity compulsory: Lim Boon Heng
By Julia Ng, Channel NewsAsia | Posted: 14 August 2007 1745 hrs


SINGAPORE : The government may make buying annuity compulsory, said Mr Lim Boon Heng, Minister-in-Charge of ageing issues.

Speaking to reporters after a National Day Observance ceremony at the Mitsuboshi Overseas Headquarters on Tuesday, Mr Lim said the government is looking to build the annuity component into Singapore's plan for the ageing population.

With longer life expectancy, Singaporeans will have to work longer, beyond the present retirement age of 62.

The government is considering a law on re-employment, to get employers to guarantee their employees a job once they reach 62.

But it may not necessarily be the same job or the same salary.

Mr Lim urged employers and employees to start preparing for the re-employment law as soon as possible.

This is because the law would provide only a framework and not spell out how re-employment should be done.

Besides working longer, another way to prepare for old age is to have a form of insurance that caters to a longer lifespan.

And one way to do this is by buying an annuity.

Said Mr Lim: "If you have a full minimum sum in CPF, when you withdraw the CPF, CPF will pay you $700 over a month. But it's for 20 years. At the end of 20 years, you'll have nothing to withdraw.

"If you buy an annuity, the insurance company will pay you less - $500 a month. But the insurance company will have to pay you for as long as you live. And if you live to 100 (years old), they'll have to continue paying you till you're 100. Therefore it's a lesser monthly sum but you're insured a little longer.

"We may have to make it compulsory for everyone, but I think for now, we should explain to people what annuities are and how people can benefit, to get people to understand it." - CNA /ls

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I support these 2 excellent initiatives:

1) Guarantee employment for thsoe over 62 year old Singpaorean

2) COmpulsory annuity TO SUPPLEMENT CPF Minimum Sum.

I am AGAINST using mandatory ANNUITY to replace CPF minimum sum.

What do you think?

[Exploited Worker]

No law should be passed to force anyone how to use their money. As it is,
the CPF is already bad enough. How can a minister or ministers passed
a DECREE to force citizens to buy insurance, in order to directly and
immediately benefit the insurance companies such as NTUC Income?

To me, this is cunning scheming to benefit themselves first, while we have
to wait for years before we can really see our money, and by which time
they may again change policies to delay it further and further and less
and less.

Do you know how much one will be able to get out of the annuity per month
when reaching the eligible age? The most you can get is around $400.
Factoring inflation into it, when you reach 70 years old in 20 years' time,
what would be the purchasing power for $400 per month?

Think about it. These self-enriching millionaires simply are going after our
money and trying to delay our withdrawal of CPF money as long as
possible.

I would never accept such a dirty trick to be passed into law.

[harry]

Whats the point? In the end NTUC Income will benefit from this ... not the people!

[Mrman]

Employment hits historic highs, almost 56% of mature people are employed. Especialy mature working women.
Do you agree?
Let discuss about it.

Thanks

[wilswong]

yeah right...employed is one thing...underpaid is another.

[greatknowledge]

mature also got to be defined ..

[greatknowledge]

Saw an advertisement in a recruitment free newspaper by WDA, SNEF and NTUC... In it there is a statement that says: By 1 Jan 2012, employers will be required by law to offer workers reaching age 62, re-employment up to age 65... which will be subsequently raised to age 67

What do u think of this?

[wilswong]

thought have a similar thread somewhere

[greatknowledge]

perhaps this thread is to discuss what the benefits of hiring mature workers

[greatknowledge]

because of this relatively low percentage ... the govt is now trying to do something