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SINGAPORE: Not all Singaporeans will need to buy compulsory annuities when they turn 55 years old.
Those with chronic diseases may be excluded, since they may not live long enough to enjoy the life insurance payouts.
This was revealed by the Minister-in-Charge of aging issues, Mr Lim Boon Heng, at a seminar organised by the Community Development Councils (CDCs) on Sunday.
One in six Singaporeans will be an elderly by 2030, and to ensure that everyone has enough money for their sunset years, the government will make it compulsory for all Singaporeans currently below 50 years old to buy annuities when they turn 55.
This was announced by Prime Minister Lee Hsien Loong during the National Day Rally.
Such a scheme will then pay them a monthly allowance from the time they turn 85 till they pass on.
Many agree that having an annuity scheme will help the majority of Singaporeans who are expected to live till 85.
But sadly, not everyone is blessed with longevity, especially so for people down with severe chronic diseases and disabilities.
Mr Lim said a committee would be set up by the Manpower Ministry to study how the annuity scheme could be made more effective.
He said: "Those suffering from chronic illnesses do not expect to live so long, therefore (they) could be excluded. There are also some people who are already buying annuities – do we need to have double coverage? The answer obviously is 'no'. So those who are adequately covered and the policy which they bought fulfils a certain requirement may also be exempted."
Alvin Lim, CEO of Bizlink Centre, said: "There are selective groups whose average lifespan would not be the same as the majority population. For example, people with muscular dystrophy will not live that long, so for them to contribute to a scheme like that would make them feel discriminated by the society at large. Worse still, this group of people is, on the average, from the lower income group."
More details on the scheme are expected when Parliament sits on 17 September.
- CNA/so
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