Saturday, August 25, 2007

Tackling aging problem in Singapore (2)

I have the following views after my 1st posting on this issue last Thursday.

1. To help Singaporeans work Longer
a) The measures to help older Singaporeans stay employed by giving incentives to the companies and through legislation is a good.
b) However it does not look into why Companies are not willing to employ older workers. Is it the large pool of foreign workers easily available in the workforce or the local workers are simply not re-inventing?
c) There should be measures in the system whereby a company trying to employ a foreign worker proves that they have made due effort trying to recruit a similar local talent before they are allowed to recruit a foreigner.

2) Improving returns on CPF savings.
a) Singaporeans are simply not smart enough to make good returns with their own investments and not willing to admit it. The best way is to force them invest and the fund adminstered by CPF board, managed by well known pension fund managers.
b) Pegging the SMRA with long term bond rate reduces the risk government take by guaranteeing the 4% interest. Smart move by the government to ensure they win everytime.

3) Making Savings last for life.
a) Don't really welcome the drawdown age to 65. In another word, they are forcing people to work before they can see the money. For someone with poor health and those who cannot get a job in their twilight years will find themselves seriously short of money.
b) The annuity is a good move to ensure all Singaporeans have money beyond 85 yrs old. However, the government should support this measure by contributing some money into the annuity account of those who don't even have half the minimum sum at age 55. Example, Citizen contribute $10,000, Govt contribute $5k.

4) Conclusion
a) Don't ever think of retirement unless you are out of the rat race.
b) Be smart enough to invest and save adequately when economy is good.
c) There must be enough measures to ensure Singaporeans are investing under good hands.
d) Government only take care of the Super Poor. If you are not one of them, you must learn to fend for yourself.


Anonymous said...

This is worst that Slavery!!!

Khiat Han Hwee Adrian said...

The things they do might be necessary but I hope our Government can give something back to Singaporeans at the same time.

Anyway Singaporeans are good boys and girls. They will listen to whatever the super talents say.

Anonymous said...

I wonder if you have seen a power point on Monkeys climbing up the ladder.

Anonymous said...

. To help Singaporeans work Longer
a) Institute re-employment legislation by 2012, to require employers to offer re-employment to workers reaching 62, up to age 65, and eventually to 67
b) increasing the Workfare Income Supplement (WIS) for older workers

My comenents on this is simple. What the decision makers should do is using a similar formula like the number of foreigners in a company should be a certain percentage. Let say 10 percent of the overall staff in a company should be staff at least 50 above. Furthermore, reward companies with corporate rebates in taxes 1 to 2 percent should they employ more age 50 and above. With this measure in place and a good chocolate, which company won't want rebates. And to have bonus to attract employement for age 50 and above. And frankly this sort of security is important.

Khiat Han Hwee Adrian said...

I had spoke to a lot of Chinese and Indian Nationals in my course of work.
Most of them shared that they have no intention of staying in Singapore for long.
They have no intention of being a Singaporeans.
They earn the money and off they go. When they left, new batch comes in.

One of the reason for citizen's difficulty in landing on a proper job during sunset years is due to free flow of foreign workers.

Anonymous said...

Yes, but my topic is focus on the older group. So what are your thoughts of rewarding companies who employ a certain percentage of old workers.

Khiat Han Hwee Adrian said...

Increasing the WIS is a carrot for companies who employ older workers. Your suggestion is just another carrot for them. If the 1st carrot is not tasty enough, perhaps the 2nd carrot may help them to bite.
We may need some time before we see the effect of the 1st carrot.