What Mr Tan ignores is that alongside the state pension, the UK has a government-mandated workplace pension scheme. Under the scheme, employers have to enrol their employees in a private pension scheme (although employees can choose to opt out). Employers have to match the contribution by their employees, and contributions are tax free. Employees are also given a say on how their money is invested by the fund.
So far, it seems almost like the CPF scheme, except:
1.You can opt out if you really want to. There is a separate state pension as a really basic safety net. This balances protecting both the disadvantaged and individual freedom.
2.There is a choice on which fund management provider to engage. This is unlike the CPF which is essentially a state-run monopoly.
Mr Tan says that the CPF is “backed by the full faith and credit of the Singapore Government – only one of a few countries in the world with a triple A credit rating from all of the world’s major credit rating agencies”.
However, the Minister fails to note that bank deposits in Singapore are covered by the Government’s Deposit Insurance scheme – backed by the full faith and credit of the Singapore Government. Clearly the Government recognises that it is possible to back contributions/deposits with the right regulatory architecture, without having to run a state monopoly.
http://www.theonlinecitizen.com/2014/05/whats-so-good-about-the-cpf/
So far, it seems almost like the CPF scheme, except:
1.You can opt out if you really want to. There is a separate state pension as a really basic safety net. This balances protecting both the disadvantaged and individual freedom.
2.There is a choice on which fund management provider to engage. This is unlike the CPF which is essentially a state-run monopoly.
Mr Tan says that the CPF is “backed by the full faith and credit of the Singapore Government – only one of a few countries in the world with a triple A credit rating from all of the world’s major credit rating agencies”.
However, the Minister fails to note that bank deposits in Singapore are covered by the Government’s Deposit Insurance scheme – backed by the full faith and credit of the Singapore Government. Clearly the Government recognises that it is possible to back contributions/deposits with the right regulatory architecture, without having to run a state monopoly.
http://www.theonlinecitizen.com/2014/05/whats-so-good-about-the-cpf/
