Singapore 2010

Singapore’s retirement income system is based on the Central Provident Fund which covers all workers, including most public servants. Some benefits are available to be withdrawn at any time for specified housing and medical expenses with other benefits preserved for retirement. A prescribed minimum amount is required to be drawn down at retirement age to buy a lifetime income stream.

The overall index value for the Singaporean system could be increased by:

• raising the minimum level of support available to the poorest pensioners;
• continuing to increase the prescribed minimum that must be set aside for retirement purposes;
• increasing the percentage of contributions required to be saved for retirement;
• encouraging additional savings from above average income earners;
• increasing the labour force participation rate amongst older workers; and
• investing a proportion of the contributions in growth assets.

The Singaporean index value increased from 57.0 in 2009 to 59.6 in 2010 due primarily to an increased recognition of the features of the Central Provident Fund.