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Singapore


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Singapore’s retirement income system is based on the Central Provident Fund (CPF) which covers all employed Singaporean residents. Under the CPF, some benefits are available to be withdrawn at any time for specified housing and medical expenses with other benefits preserved for retirement.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 in the form of a lifetime income stream (through CPF Life).  The Singapore government has implemented changes to CPF in 2016 which include providing minimum pension top-up amounts for the poorest individuals, more flexibility in drawing down retirement pension amounts and increases to certain contribution rates and interest guarantees.

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

  • reducing the barriers to establishing tax-approved group corporate retirement plans
  • opening CPF to non-residents (who comprise more than one-third of the labour force)
  • increasing the labour force participation rate at older ages as life expectancies rise.

 

RRF19921_MMGPI Report_0616_Chart_WEB_1000x950_22_SINGAPORE

Progressive Results:

Year

Overall

Adequacy

Sustainability

Integrity

2016 67.0  61.4  66.8  76.1
The Singaporean index value increased from 64.7 in 2015 to 67.0 in 2016 primarily due to an increase in the level of support provided to the poor.
2015 64.7 55.7 65.9 77.2
The Singaporean index value decreased from 65.9 in 2014 to 64.7 in 2015 primarily caused by an increase in life expectancy and the change to the scoring methodology relating to pension assets.
2014  65.9  56.4  68.5  77.4
The Singaporean index value decreased from 66.5 in 2013 to 65.9 in 2014 due to a number of small changes.
2013

66.5

59.0

67.5

77.2

The Singaporean index value increased significantly from 54.8 in 2012 to 66.5 in 2013 primarily due to a revision by the OECD in its approach to allow for the three separate accounts within the Central Provident Fund and updated OECD data on private pension coverage.
2012

54.8

42.0

54.2

76.2

The Singaporean index value fell from 56.7 in 2011 to 54.8 in 2012 due to a reduction arising from the revised coverage figures as measured by the OECD. This reduction was offset by increases in the level of contributions required for retirement and our introduction of the Worldwide Governance Indicators.
2011

56.7

41.9

60.9

74.5

The Singaporean index value fell from 59.6 in 2010 to 56.7 in 2011 due to a reduction in each of the three subindices.  The reasons included a lower net household saving rate, reduced pension coverage as it is now based on population and the effect of some new investment rules.
2010

59.6

43.7

63.6

79.5

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.
2009

57.0

51.7

68.9

49.1

 Media 2016:

Singapore inches up in Global Pension Index

Singapore ranks higher in global pension index but still lags in adequacy

Media 2014:

Singapore’s CPF system ranked top in Asia, Denmark’s system leads
globally: Mercer

CPF best retirement scheme in Asia, but lacks adequacy: Mercer

 


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Link to Victorian Government (Victoria Online) the Mercer Australian website Australian Centre for Financial Studies