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Govt urged to top up retirement savings
By Elgin Toh
THE Government is being urged to give a monthly stipend of $200 to $300 to low-income older workers, to supplement the inadequate retirement savings of this vulnerable group of Singaporeans.
This proposed Retirement Grant would, however, be only for those aged 65 and older who have passed a means test.
Modelled after Hong Kong's Normal Old Age Allowance scheme, it is among three key recommendations made by a group of 10 experts formed by Reach, the Government feedback unit.
The group stressed, in a Reach statement yesterday, that the grant 'is intended to be one component of retirement adequacy, while personal savings, family support, part-time work, WIS (Workfare Income Supplement), and renting or reverse mortgaging HDB flats will continue to supplement CPF savings'.
Another recommendation is to let older, low-income workers who have been laid off make specified monthly withdrawals from their CPF savings, for three months.
This Individual Unemployment Credit, viewed as a loan, would have to be repaid when the worker found another job.
The money would come from a scheme to which both the worker and the Government will make equal contributions. For those earning below $1,000, the Government would contribute the full sum.
The third suggestion is to give these workers a subsidy should they take on lower-paying jobs.
The proposed subsidy is half of the salary difference between the old and new jobs.
This Wage Insurance Scheme, like the unemployment credit, would be co-funded by the workers and the Government.
The group's chairman Zee Yoong Kang, who is also chief executive of the NTUC Learning Hub, stressed that the proposals do not go against the existing philosophy of encouraging these people to work.
The Manpower Ministry said it will study the ideas.
Retired technician Lee Chong Hing, 63, welcomed the proposals, but added: 'The $200 to $300 stipend is enough for people who are healthy. But the Government should give more to those who are sickly.'
In a separate statement, Reach gave the suggestions of another group of experts on dealing with the challenges faced by low-income and single caregivers of elderly relatives.
These include giving the caregivers more tax relief and time off from work.
The Health Ministry has promised to study the recommendations.
By Elgin Toh
THE Government is being urged to give a monthly stipend of $200 to $300 to low-income older workers, to supplement the inadequate retirement savings of this vulnerable group of Singaporeans.
This proposed Retirement Grant would, however, be only for those aged 65 and older who have passed a means test.
Modelled after Hong Kong's Normal Old Age Allowance scheme, it is among three key recommendations made by a group of 10 experts formed by Reach, the Government feedback unit.
The group stressed, in a Reach statement yesterday, that the grant 'is intended to be one component of retirement adequacy, while personal savings, family support, part-time work, WIS (Workfare Income Supplement), and renting or reverse mortgaging HDB flats will continue to supplement CPF savings'.
Another recommendation is to let older, low-income workers who have been laid off make specified monthly withdrawals from their CPF savings, for three months.
This Individual Unemployment Credit, viewed as a loan, would have to be repaid when the worker found another job.
The money would come from a scheme to which both the worker and the Government will make equal contributions. For those earning below $1,000, the Government would contribute the full sum.
The third suggestion is to give these workers a subsidy should they take on lower-paying jobs.
The proposed subsidy is half of the salary difference between the old and new jobs.
This Wage Insurance Scheme, like the unemployment credit, would be co-funded by the workers and the Government.
The group's chairman Zee Yoong Kang, who is also chief executive of the NTUC Learning Hub, stressed that the proposals do not go against the existing philosophy of encouraging these people to work.
The Manpower Ministry said it will study the ideas.
Retired technician Lee Chong Hing, 63, welcomed the proposals, but added: 'The $200 to $300 stipend is enough for people who are healthy. But the Government should give more to those who are sickly.'
In a separate statement, Reach gave the suggestions of another group of experts on dealing with the challenges faced by low-income and single caregivers of elderly relatives.
These include giving the caregivers more tax relief and time off from work.
The Health Ministry has promised to study the recommendations.
