7/07/2015

An unsustainable formula with unsustainable policies to match

In the late 70s the formula was already in place. There was this common saying, if you are 40 and have not made it, it’s over. For those who have made it, they are at the top of everything, in career and status and income. Many young scholars in this scheme were CEOs here and there, permanent secretaries, generals and ministers.

Now a bit of reality.  At 40, at the top, earning top income, what is going to happen to them when they are 60, 70 or 80? For this group of aristocrats, their career cannot end there and then. They will continue to be relevant and continue to get more and more pay. Somehow there will be positions or appointments available for them. And there will be many coming after them to join the club. And membership to this exquisite club will grow and grow, and at the same time their income will grow and grow. Mind you, once in the club, everyone is earning millions and more, with no caps.  Sustainable?

The problem is that this group does not disappear like their parent’s generation. They don’t die at 60 or 65. Their lifespan is going to hit 80 and more. How to feed their growing income that has no caps? How much is needed to sustain this group of elite?

As for the ordinary Singaporeans, if by 40 they have not made it, most will not, they are going to hit the wall. Many will start to lose their jobs. Many will become unemployable, unwanted. Many will have to retire prematurely. Many will try to make ends meet by whatever job they could laid their hands on, underemployed is better than unemployed, they consoled themselves.

For this group, 60 is a defining moment, a defining age. It is time to take stock of their miserable savings. Some still think that they could survive without knowing that there will be another 20 or 30 years ahead to live. How many can afford to live on their savings, dwindling and eating up by inflation at a frightening rate, to last another 20 or 30 years? How much is needed to survive 20 or 30 years without an income but a little savings?

The bulk of the aristocrats is being sustained by the gravy train, a big group and growing rapidly. But the crowd of retirees, the average Singaporeans, is going to grow out of proportion, to live to 80 or more, but with no jobs and no income.

How sustainable is this formula of a longer lifespan without any income? And for those with enormous income, where is the money coming from to sustain their growing incessant appetite for more? They are at their peak at 40, at the top of their career and income. But their income will keep peaking every year, unrestrained. There is no limit to how much they want to be paid or expected to be paid.

How fortunate are those in this aristocratic class? And how unfortunate will be those not in this aristocratic class?

19 comments:

Anonymous said...

A good Arse-Ritocratic policy popularly supported by 60% of Sinkies.

Tell Laura YEW love her ........ said...

Sing more "Tell Laura" going forward and u will likely get more 53% vs 47% in the piggies disfavour.

Say No Ter-Nao ( Pig-Brain )! said...

We dun want a TER-NAO ( PAPig ) Singapore!

ℳatilah_$ingapura said...

@ daily panick merchant and purveyor of NEGATIVE spirits, Redbean:

Aiyah please lah. New policies and ideas have to be TRIED OUT in real life.

If they don't work as expected, or turn out to be unsustainable simply amend or change the policy lah. And keep changing and amending until it is "fined tuned" and working well.

Where got problem? Panic for nothing. Relac lah.

Anonymous said...

Rb, r u writing abt the ancient brutalised Chinese diaspora stomped under the feet of the dictatorial, aristocratic Qin Dynasty 2nd Emperor?

Anonymous said...

When you are poor you want $$. When you have $$, you want more $$$$. When you have more $$$$ you want power. When you have power you want more power. When you have more power, you want it forever.

Anonymous said...

There is no such things as the aristocrats living a life of decadence, opulence and leeching on the masses while the people are subjected to hell and fire by the policies dished out with total disregard and die your business attitude. ..... This is pure greed, self-centred and self-serving.

Virgo 49 said...

When you have more and more monies, put in Am Bank. The better than Swiss banks.

But when you are lying on a carriage trolley slowly inching your way into the incinerator or slowly been lowered into the six foot trench, please deposit your monies with the He'llo -HELL Emperor.

Good luck. Exchange rate better than Euro/US and Ringitt

Anonymous said...

Vote in the average Joes.
Vote out the elites and scholars !

Average is in ! A* is out !

Anonymous said...

The latest war cry is humility and putting national interest above self. When you touch 40, lose your job, cannot find a proper job to survive, who is going to look after your interest? For many, this is the most financially taxing period of one's life with children's further education in mind, not to mention starting to worry about saving for retirement.

patriot said...

Many with elders to care and look after as well.

patriot

Anonymous said...

Hi RB, speed. You do paint a very bleak picture for the ordinary folks in Singapore. I am sure what you have written is a slight exaggeration of reality. I am living 6 months each year in Singapore and what I observe is not the picture you paint. To someone who has not been to your country, after reading your article, would form a totally wrong picture of Singapore. Members of my family in Singapore are not rich, but they seem happy enough with life. The shopping malls are always crowded and long queues always form in front of popular eateries. I know Singaporeans do live very stressful lives but this happens in most first world countries. Retirees in Singapore have their CPF, Medisave, Medishield, SG50 goodies and many other help from the government. If you compare the standard of life of a Singaporean retiree to his/her counterparts in Indonesia, Philippine or even Malaysia, I think Singaporean retirees are better off. No?

Anonymous said...

speed @ July 07, 2015 4:56 p.m

Don't stop at just living here for 6 months.
Please convert your citizenship.
Retire here.
Bring up your grandchildren here.
It's all good.

Anonymous said...

The rot begins now.

Anonymous said...

The aristocrats are too simple minded. They have grossly underestimated the people. History will tell ..... they are the daft and not the sinkies ......

Anonymous said...

https://youtu.be/_1QOeiJVMaY

Video: Tiger ( peasants ) vs Wild Boars ( pigs ( aristocrats ))

Fight till the end ......

Round 1: Tiger ( peasants ) 1 Wild Boars ( Pigs ( aristocrats )) 0

Round 2: Fight till the end ......

Chua Chin Leng aka redbean said...

Hi Speed, many oldies are lucky because they owned a property they could downgrade from and traded for a pile of cash. So it is good time for them. For the young, if they are singles, just spend and enjoy.

You pay 20/30% tax for life time medical coverage. Not sure if you get any state pension. We don't have state pension, on life time insurance coverage. Now with our CPF locked in, it is as good as paying more than 30% tax but did not have life time coverage. We keep paying for the coverage until we die.

Anonymous said...

Just vote opposition redbean, or if you want instant remedy, go Malaysia.

WP govt will give you FREE medical coverage for life (0 years old to die), the young and working adults will have lots of opportunities to become CEO of major companies, very few foreign talents to compete for jobs, low tax, full employment, low cost of living but your cash go up every year.

Anonymous said...

You foaming about foreign shit or foreign cheats?