Down And Out In Singapore And Other Countries

You've paid your taxes, your CPF contributions, completed your National Service obligations, yet you perennially worry about ending up like one of those who can't afford to retire. According to the latest CPF Life Report, about 60 per cent of Active CPF Members will have only $67,000 or less in 2013. That's less than the current CPF Minimum Sum of $131,000, money barely sufficient to tide you over the evening years.

Suppose you are old, single, and have no income or property.

In Australia you get an Age Pension after age 65 of A$689.00 per fortnight (approx S$1,700 per month).

A Pension Supplement of A$58.40 per fortnight to offset GST, Pharmaceutical, Telephone, Utilities expenses.

And a Pensioner Concession Card that entitles you to:
- reductions on property and water rates
- reductions on energy bills
- a telephone allowance
- reduced fares on public transport
- reductions on motor vehicle registration
- free rail journeys

In Canada you get the Canada Pension Plan (CPP) and The Old Age Security pension (or OAS or OAS-GIS).

 The Canada Pension Plan (CPP) is a contributory, earnings-related social insurance program. In 2011, the prescribed contribution rate is 4.95% of a salaried worker's gross employment income between $3,500 and $48,300, up to a maximum contribution of $2,217.60. The employer matches the employee contribution, effectively doubling the contributions of the employee. When the contributor reaches the normal retirement age of 65, the CPP provides regular pension benefit payments to the contributor, calculated as 25% of the average contributory maximum over the entire working life of a contributor.

The Old Age Security pension (or OAS or OAS-GIS) is a taxable monthly social security payment available to most Canadians 65 years of age or older. As of July, 2011, the basic amount is C$533.70 per month.

The Guaranteed Income Supplement (GIS) is for low income pensioners who earn little or no other income. The Old Age Security is supplemented by a Guaranteed Income Supplement (GIS), which is considered non-taxable income. As of July 2006, the maximum supplement for a single individual with no other source of income is C$597.53.

For a guy with no CPP, the OAS-GIS would pay out C$533.70 plus C$597.53 (approx S$1,300 per month).

Sets you thinking, doesn't it?

Of course it's all paid for by the taxpayers. In Australia only those earning above A$6,000 a month pay tax (starts at 15% rate), in Canada combined federal/provincial taxes kick in at 9.9% for the first C$20,000 (annual income). But comprehensive medicare is thrown in for free. Baby deliveries are F.O.C. at public hospitals in Australia. In Singapore, on top of income tax and the regressive GST, 36% is put away for CPF every month. Why are we still fearful of getting sick at old age?

The Ministry of Health is blowing a trumpet about its vision to "enable all Singaporeans to live well, live long and enjoy peace of mind." You may ask the Minister a simple question, "Where's the beef, Mr Gan?"