Singapore CPF system is the best pension system in Asia: global pension system index

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Global consultancy firm Mercer has declared that Singapore has the best pension system in Asia, in its annual report.

The annual report that specialises in pension systems around the world considers 30 countries over 60 per cent of the world’s population. It then rates pension systems on their adequacy, sustainability and integrity.

Singapore’s CPF system received a B rating with an overall index score of 69.4. The nation’s score went up 2.4 points from last year, when it received an index score of 67.

Denmark topped the list on the global scale, for the sixth time in the row. It beat top contenders Netherlands and Australia to secure the title of having the best pension system in the world, with an overall score of 78.9.

The global average score this year was 59.9. Interestingly, no country received an A rating.

On Singapore’s top position among all other Asian nations that were considered, Mercer’s Asia zone wealth business coordinator and director of strategic research of growth markets, Garry Hawker said:

“As one of the most developed pension schemes in Asia, Singapore has continued to make improvements through CPF in providing more flexibility to its members.
“The overall index value for the Singaporean system could be further increased by reducing the barriers to establishing tax-approved group corporate retirement plans, opening CPF to non-residents who comprise more than one-third of the labour force, and increasing the labour force participation rate at older ages as life expectancies rise.”

 

29 COMMENTS

  1. 15

    -1

    Interesting read: – A very well written letter to CPF BOARD

    Dear CPF Board,

    You are the appointed agency to manage my retirement fund, which comes from my monthly contribution from the day I started working. I had no options to self manage my fund, or to appoint better fund manager. In short, I was forced to work with you. Nonetheless, I thank you for the hard work all these years to provide me an impressive 2.5% interest on my contribution. I ought to be grateful that my money is still there. If not, don’t tell me about it. Don’t drop hints either. That is a bad habit you have acquired over the years and I am highlighting it today as my feedback.

    When we first began, we agreed for a complete withdrawal when I get to 55 years old. That would be more than 3 decades from my first contribution. It was an absolute peach to you. Even the worst local bank would offer me more than 2.5% for a crappy structural deposit on a 10 year term, capital guaranteed. If I use them, I would be able to do an early withdrawal my funds before maturity, albeit with a penalty charge. You could certainly do better than 2.5% for a complete lock in for no withdrawal option for 3 decades. Never mind about the yield. We are friends and it hurts our relationship if we get too calculative. That is why it is unacceptable for you to charge me an interest for any loan I take from my own money. We should give and take but unfortunately, you are the only one enjoying the taking till now.

    Things turned a nasty corner when you begin to think it is rightful for you to dictate my retirement age and how to live my life. We agreed on a complete withdrawal at 55 years old at the beginning of our contract. You revised it, because you told me you cared for me. So you suggested 60, then 63 and now you are urging me to stretch my non-withdrawal to 65 years old, by giving me a bonus of $1,200 for a 2 year extension. that would amount to a total of more than 40 years of keeping my money with you. Oh, is that how things work around here? I would have offered you $12,000, to withdraw my money 20 years earlier. I would if I could, if you have the money to return me in the first place.

    I must apologise for my lack of faith in you but that has been lost ever since you told me I would not be withdrawing my retirement fund at whatever age you decided, and the goal post is still shifting as we speak. Instead you told me I will receive only pay-outs like an unemployed working receiving handouts from Centrelink in Australia. The key difference is, the Australian Government pays the unemployed from tax receivables and the money I left with you, come from my pocket. Despite that, you think you have the right to hold a bulk of my money in which you called Minimum Sum, and even tell me I will receive no payouts if I fail to accumulate enough money beyond your Minimum Sum. Thus, I cannot help but wonder if the Minimum Sum is created to keep me alive or to keep you afloat.

    Over the last 15 years, you have dropped too many hints to suggest things are not exactly in a pink of health within. I do not want to interfere with your affairs but do not make me pay for your mistakes. I entrusted my money in you because I had not been given a choice. It is more than a privilege for you, an entitlement in fact. Do not abuse it. This is not a warning, just a simple advice from a friend.

    Sincerely,
    Your Friend

  2. 0

    1

    Mercer has dented its reputation as a Global Consultancy Firm giving ratings!! come and see for yourself, giving a B rating is a big slap on your corporate face!!

  3. 3

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    Pension system, how much did our gamen psych or paid to get a wrong info? That’s our hard earn monies from our own effort. No PENSION monies was given to us at all except
    we have to pay accrued interest at a lost whenever we use our own money. But the minister who earns millions deserve 10% pension payout. Fantastic isn’t it, thats what I call “Democracy @ its best” for being incompetent at paper & finger pusher. Dumdum can earn money by doing nothing but sucking us dry. Give back our hard earn money. VTO!! VTO!!

  4. 0

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    Used to be until they turned hypocrite by with holding the people’s money by extending the full sum withdrawal age and imposing a minimum sum again and again. No different from day light robber. Just give us back our money as originally promised without conditions. No CPF dogs barking please.

  5. 1

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    You guys need better writers. And editors. There is practically zero followup, it’s like reading a reddit summary bot. This is why traditional journalism still matters.

  6. 1

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    “” who ask you do it report “” Global consultancy firm Mercer has declared that Singapore has the best pension system in Asia, in its annual report. please go and get fuck Our CPF is not pension fund ok! Don’t mislead the Singaporean CPF member readers! ..

  7. 1

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    Fake news! Please ask Singaporeans who are made in Singapore!
    Many of us have a HDB apartment but no cash for retirement, nobody is given pensions except our millionaire ministers
    30% Singaporeans are living in poverty
    70% Singaporeans living in fear especially our policies keep changing without check and balance
    Many unemployed senior citizens are selling tissue papers, singing at market place and some sleeping at void deck!
    Where is our Swiss standards of living ???
    How does the Disqualified research consultants arrive at grade B before interviewing the 30% living in poverty ???

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