I read in yesterday’s newspapers that the Gahmen might* make annuities compulsory.
That’s ironic ‘cos I remember when Paul Keating was Australian PM, he was studying our CPF scheme.
Instead, they introduced superannuation.
Now, we’re thinking of doing as the Australians do – Super!
I’m not trying to be funny. That’s what the Aussies call it.
Anyway, buying annuities is probably a good thing, since people are living longer.
Just wonder about the details.
* This is code for: We’ve decided already. We’re just giving you advanced notice to let the idea sink in.
suli
/ Friday, 17 August 2007Haha. Since I’m working with Super I feel a duty to comment. :P
The Super system doesn’t require anyone to buy an annuity. It’s a complicated system of providing an individual with retirement savings (the 9% compulsory Super is the current most popular design… but there’re also lots of other more complicated designs).
There’re also lots of annuity products out there… I think the one we’re talking about here is more of a lifetime annuity.
Hehe… sorry, I’m living and breathing these issues these days… can’t help wanting to be precise.
acroamatic
/ Saturday, 18 August 2007Harlowe, Super Su Li! I see what kind of topic gets your attention. ;)
From my understanding, it’s something like CPF (compulsory). I said ‘buy’ ‘cos that’s what the papers mentioned. I suppose, Singapore being Singapore, we’ll just be offered a few options at the end of the day.
Choose one… there is no buy. =P (Apologies to Yoda.)
suli
/ Saturday, 18 August 2007Lol. Indeedily.
I only read the channelnewsasia version… sounds like they’ll keep the CPF contribution system… but then instead of paying you what sounds like an allocated pension from that savings, they’ll just give you a lump sum and make you buy a lifetime pension from an insurer… not wanting to take that risk themselves.
Ah well… you’ll just have to see what comes out of that.
Ivan Chew
/ Wednesday, 29 August 2007I see the compulsory annuity as a good thing. It’s just like CPF, which is a compulsory savings. Granted those who know how to manage their money and finances will find something like compulsory savings an inefficient and paternalistic system. But if everyone could manage their money well, governments (not just Singapore) wouldn’t need things like CPF and its equivalent. The younger generation will accept the compulsory annuity concept just like how our generation has accepted CPF readily.