Independent surveys confirm S'poreans living longer
WHEN Singaporeans were told that more than half of those who live to age 62 will live beyond 85, many raised their eyebrows in disbelief.
But independent actuaries from American company Trowbridge Deloitte have 'more than verified' this data, with studies that show Singaporeans are indeed living longer.
Separate surveys also indicate there was 'no robust data' to conclude the rich live longer than the poor - and thus stand to gain more from a compulsory annuity plan Singapore will be introducing for old-age support.
These two outcomes were made public on Wednesday by Professor Lim Pin, who chairs a committee that had commissioned the studies to address the scepticism among some Singaporeans of the need for the annuity plan.
He made the disclosures when he gave the media a preview of the shape of the upcoming annuity plan. His 18-member, government-appointed committee is tasked to draw up a basic annuity scheme for Singaporeans.
In estimating a life table for annuity participants, Trowbridge Deloitte's calculations support government data that Singaporeans are living longer, he said.
More details will be revealed on Feb 12 when Prof Lim's committee makes public its report.
Last year, when the Government announced plans for mandatory annuities, it explained they were necessary because many are living beyond 85 years and they need to have money then.
Some Singaporeans doubt it. Also, they feel the poor will end up subsidising the rich, who may live longer because they can afford better health care.
To settle the issue, the actuarists were asked to do a survey. 'And they came to us saying that so far, no robust data supports that difference - not robust enough to have any differentiation (in premiums),'' said Prof Lim.
'So what we will recommend is perhaps, we'll keep an eye on that. If indeed... there is robust data, we have to modify the scheme,'' he added.
The committee also sought people's views. One such person is wealth management consultant Arul Selvam Govindasamy, 35, a member of national feedback group Reach.
He suggested making the premiums refundable. 'With our stressful lifestyles and the unhealthy food we consume, I think our generation will not live as long as the current elderly,' he said.
The idea was among five key recommendations made by the committee. NTUC has endorsed them, said Prof Lim.
When contacted, NTUC deputy secretary-general Halimah Yacob described the recommendations as 'positive' and 'sound'.
Particularly pleased with the refundable option, she said: 'Many Singaporeans hope to leave something for their families when they pass away, and the new proposal addresses that concern.'
Union leader Lim Kuang Beng, while supporting the plan, called for greater attention to be paid to non-CPF contributors who will be left out. 'Often, they are the ones who need most help in their retirement,' he said.
Feeling the same way, Mr Leong Sze Hian, president of the Society of Financial Service Professionals, said the well-off will buy their own pension plans.
This leaves the risk-pooling in the planned annuity to a smaller and poorer group of Singaporeans, and will jack up premiums, he said.
Manager David Cheong, 37, like many of the seven interviewed, find the recommendations are 'a slight improvement on the scheme'.
'At the end of the day, I believe people should be given the freedom to do what they want with their money, rather than have it tied down.'
