Planning for retirement
Over the last few weeks we have heard warning voices of how Singaporeans are going to cope in their old age. There were concerns that Singaporeans are not planning for their retirement. It is all a big irony, an unbelievable irony! Singaporeans not planning for their retirement? Or do they need to? When we are talking about planning for retirement, what we are saying is saving that pot of gold so that we can live gracefully without becoming a burden to anyone. And the insurance agents will throw all the policies to you and say these are what you need. The painful thing is that after 20 or 30 years down the line they will tell you that you are not adequately covered. Not enough, after paying all the premiums! What about CPF? Singaporeans have the highest saving rate in Asia other than Japan. Probably the second highest in the world. We are saving at least 30% of our income. And again not enough. How I wish I have a million dollar income. Then I will also complain not enough. How many Singaporeans can afford to save some more when they are already saving more than 30% of their monthly income and struggling to make ends meet? How many have the luxury of earning a million a year and still complain not enough? The majority of Singaporeans will never save enough for their retirement if the cost of living is to run up continuously, and at an alarming rate. The only way out is to work till they die. And is there a need for Singaporeans to plan for their retirement when the govt is planning for them by withholding their life long savings in the CPF to be released in drips at their old age? There is no need for the lower income Singaporeans to plan for their retirement. They cannot afford to. They just need to work and work and work. The state has assumed the role of planning for the Singaporeans' retirement. How can anyone expect the Singaporeans to plan and save when they are already squeezed to save in the CPF and have nothing left to save? Do we really expect ordinary hand to mouth Singaporeans to save in the CPF, buy insurance policies and save some more in their personal savings accounts? Only million dollar Singaporeans can do that.