Asia Countries Score Low In Global Pension Index

October 28, 2009 | By Kim Walker

No country achieved a score over 80 – an A-grade system – proving that even the world’s most advanced pension and superannuation models still need refinement to ensure they are robust enough to support the world’s rapidly ageing population.

The report recommended that Singapore’s system could be improved by:

1. Raising the minimum level of support available to the poorest retirees.
2. Continuing to increase the prescribed minimum that must be set aside for retirement purposes.
3. Increasing the percentage of contributions required to be saved for retirement.
4. Encouraging additional savings from above-average income earners.
5. Increasing the labour force participation rate among older workers. 

In Singapore, the Central Provident Fund (CPF) Minimum Sum Scheme provides members with monthly payouts to support a modest standard of living in their old age. Currently, older CPF members may participate in the recently launched CPF Life annuity scheme or buy approved life annuities with their Minimum Sums to give them a guaranteed life income. Alternatively, they may place their savings with approved banks or continue to keep the money with the CPF Board.