How much does it cost to retire ? Recently read an article in ST dd 16 July 09 - about the basic care in Britain to cost retirees $48k (GBP 20k) per person after retirement to guarantee basic social care and support if they need it at the end of their lives, under new overnment propsals.
Britain has more pensioners than children. Unless urgent action is taken, there may be a GBP 6 billion hole in the funding of social care within 20 years.
Three models to fund a new national care service that give the same basic entitlement. A top-up, voluntary insurance or compulsory insurance. The bottom line is it requires the elderly to pay up around S$48k. According to Times of London, the legal retirement age of 65 would be scrapped or raised. The age from which the state pension is payable is also due to increase to 68 for both sexes by 2046. The consultation on the proposals will run until November, with the chosen system expected to be published in a White Paper next year and phrased in from 2014.
Singapore's compulsory annuity plan.
By 2030, one in five Singaporeans will be over the age of 65 as compared to one in seven at the moment. WIth this fast ageing population issue, The Government, all this while has been implementing plans to provide them with a lifelong income into the old age so that they have the means to pay for the services they need as they grow older.
An extract from the CPF board website. In Singapore, one recent innovation is the introduction of CPF Life. Upon a member’s enrolment into CPF LIFE, a portion of the cash savings in his Retirement Account (RA) will be set aside as the premium for an annuity. Combined with the remaining cash savings, the member will get a lifelong monthly income from his Draw Down Age (DDA). For refundable plans, depending on the member’s age when he passes away, his beneficiaries would be able to receive a bequest.
These are some of the plans the Government is implementing for the country. Do you have anything to share about your country. We welcome your sharing here.
