IPS forum on CPF: Future needs and wants of seniors.

The next speaker was Associate Professor Tan Ern Ser from the Department of Sociology in NUS. His presentation looked at three categories of seniors aged 55-65, 65-74 and those 75 and older.

In general, younger seniors as well as male seniors do better in having CPF savings. More older seniors receive retirement funding from their children compared to the younger seniors. 

This, to me, shows that the CPF has become a more important part of retirement funding for Singaporeans and will continue to be so for younger generations, basic safety net though it may be.

Prof Tan also revealed that despite some worries, most of our seniors have seemingly been prudent with the CPF money they withdrew. See table below:

Usage of withdrawn CPF money.

Frankly, if I were to withdraw my CPF money just to plonk almost half of it in a savings account, I would rather leave it in the CPF to earn 4% per annum in interest. 

Of course, this could change in future. Who knows? By the time I reach 55 years of age, fixed deposits in the banks here could attract interest payments of more than 5% per annum.

What I also found interesting is in the next slide:

Prof Tan asked whether good relationships with children lead to financial adequacy for the seniors or does financial adequacy of the seniors affect their relationships with their children? 

Well, I think that if the reliance on children should be an important part of some people's retirement planning, then, this could be an interesting question to ponder.

OK, who threw a shoe at me? Who? Who?

See slides: here.

Related posts:
1. AK attended a forum on CPF.
2. What is our attitude towards having children?

IPS forum on CPF: The Future Retirement Landscape.

The first speaker at the forum was Associate Professor Kalyani Mehta who is the head of the Gerontology Programme in the School of Human Development and Social Services at SIM University. In case you are wondering, Gerontology is the study of social, psychological and biological aspects of ageing. Big word, I know.

The main take away for me here is how people are living longer but they are not necessarily healthier. So, we have longer life expectancy (LE) today but what is also important to note is healthy life expectancy (HALE) and this might not match up. Take a look at the slide below:

So, on average, a male would be unhealthy (i.e. needing medical and maybe even palliative care) for 6.6 years while a female would be so for 6.8 years before saying good-bye to this world.

There will also be a growing number of aged who are single or divorced. They could be childless. So, there would be more elderly who stay alone in future.

We always say that family is the first line of defence but for these elderly people, the State will have to take a more active role in providing the necessary care.

What do I think?

Well, it is true that life expectancy has risen as nutrition and hygiene standards improved over time. Medical science has also improved. These factors help to promote longevity.

So, as people live longer, they will need more money for a longer time and healthcare costs will be a big burden if they are not well prepared. I like how our government has come up with Medishield Life to provide coverage for all Singaporeans for life, including those with pre-existing medical conditions. That is fantastic and I can't wait for it to be implemented because it will help people like my father who has pre-existing medical conditions and is almost 70 years old.

More importantly, we have to accept the fact that there will be more elderly people who are without children in future and if they happen to be financially disadvantaged at the same time, how can the government help them to meet their needs in their old age?

The CPF is a system that rewards employees. For those who were not gainfully employed for most of their lives for various reasons, what then? For these people, the CPF will not figure largely in their retirement plans, if at all. Those in such a situation who did not plan for retirement at all would be in dire straits.

The CPF is a system that help people who are able and willing to help themselves.

See slides: here.

Related post:
AK attended forum on CPF.

AK attended a forum on CPF and Retirement Adequacy with Mr. Tan Chuan Jin and Mr. Tharman Shanmugaratnam.

This really came as quite a surprise:

It took me a while to decide on whether I  should attend the event or not because of privacy considerations. Then, when I was talking to my younger sister about it, she told me quite bluntly that the media won't be interested in a certain obscure blog run by a certain obscure AK. They would be zooming in on the ministers! OK, that made up my mind for me.

So, I took a day leave from work and went for the event to see and hear for myself discussions regarding the CPF by probably some of our country's more brilliant thinkers. Issues regarding the CPF and retirement adequacy interest this frog in a well and it is really a privilege for me to be at the forum.

It has been a long day and I am feeling mentally and physically exhausted. Mentally exhausted because I had to process so much information in such a short time. I have not felt so taxed since my undergraduate days! Physically exhausted from sitting down for a whole day? Yup, I also walked from the Shangri-La Hotel to Orchard MRT station. I am so out of shape, I know.

I will try to share more in detail on what was discussed today at the forum in the coming days. I will also share some of my thoughts then.

For this blog post, I am just going to share some photos as well as an outline of the topics discussed.

Here are some photos:



Kiasu AK was quite early so that he could choose a good seat.

Panel discussion in the morning:
Meeting current and future needs and aspirations of Singaporeans.

Minister for Manpower, Mr. Tan Chuan-Jin.



Panel discussion in the afternoon:
Achieving the desired outcomes in a sustainable way.

DPM and Minister for Finance,
Mr. Tharman Shanmugaratnam.

Here is an outline of the issues discussed:

1. Future retirement landscape: Key influencing health and social trends.

2. Future needs and wants of seniors.

3. Housing and the CPF system.

4. Behavioural perspectives of the CPF system.

5. International retirement income systems.

6. Balancing returns, risks, facts and fallacies.

7. Analysing the CPF-IS and its alternatives.

8. Improving the CPF system.

From these 8 titles alone, I think you can guess that my brain had a fulfilling day. Now, some time is needed for digestion.

Related posts:
1. An(other) open letter to the Prime Minister.
2. E-books: Thoughts on financial security for Singaporeans.