As a result of better lifestyles, the people are living a lot longer today – 82 years compared with 66 in 1970 – but not every one finds it a blessing.

The retirement age is 62 and Singapore has one of the fastest growing ageing populations in Asia. With the rising cost of living, especially in healthcare, senior citizens who have little education, money or family support are becoming the country’s rising disenchanted.

(At last count, there were 400,000 Singaporeans aged 60 or older, but only 73,000 of them, or 18%, were working.)

Visitors to the city can see more of these hunched figures collecting tin cans at hawker outlets, selling tissues for S$1 (RM2.28) near train stations or picking up used cardboards. Others clean tables or toilets. They are generally not homeless, merely the rising poor in a rich city.

This is contributing to a widening wealth gap and a hot political potato for the government.

Three years into his leadership, Prime Minister Lee Hsien Loong last week announced a package aimed at a long-term financial solution. Without dipping very deeply into the Treasury or overturning the state’s no-welfare tenet, Lee has a tough job.

His main theme is to get Singaporeans, both employers and workers, to carry on working beyond 62 years and increase old age savings so that it can last longer.

Lee increased payout by 1% to 3.5% to the people’s CPF (Central Provident Funds) deposits of up to S$60,000 (RM137,325) with the rest remaining at 2.5%.

The public has welcomed these moves. Most people are happy with the option to carry on working past 62. What is unpalatable is Lee’s decision to postpone CPF payouts progressively from aged 62 to 65 years. (Under present laws, Singaporeans withdraw these retirement savings at 55 but have to keep a minimum account, which now totals S$99,600 (RM227,870), to be drawn down after 62.)

Many Singaporeans are unhappy with the government retaining any part of their life-long savings, preferring to be repaid in full at 55 as originally planned.

“It is our money and we should be allowed to use it any way we want,” posted one writer. “Trust people to do what is best for themselves.”

However, others think the government is right to take over at least partially the management of people’s retirement finances to ensure they have enough money to spend on their daily needs.

While the majority of Singaporeans are conservative with their money, some retirees recklessly blow it in a short period on wine, women or gambling and become a burden on society.

“People are always quick to want individual choice but when it goes wrong and leads to bankruptcy, they blame the government for doing nothing,” said an official, when explaining the state's action.

But by far the loudest protest is reserved for Lee’s proposal to start a compulsory annuity scheme to finance people who reach 85 years old. This is how it works. A small portion of the CPF minimum sum will be used to buy the annuity that will pay out nothing for 20 years. At 85, if he lives that long, he gets a monthly payout of S$250 – S$300 (RM571– RM686) until death.

Should the person die before 85 the money goes into a pool to help other 85-year-olds, not to his next-of-kin.

The concept of the government compelling hundreds of thousands to buy an annuity and get nothing in return if they do not live longer than 85 has angered a wide section of the population.

“This is an atrocious idea. Life span is currently 82, how much more can it go up to?” demanded a reader. The total number of Singaporeans aged 85 or older stands at about 25,000.

An online petition has started against it. Some are calling for people to wear black in Orchard Road this weekend.

Reflecting the feelings of many others, Ong, 69, said: “Come on, give us Singaporeans a break. When will you, the government, stop intervening into how we spend or invest our own hard-earned monies? It ain’t yours!”

Since independence in 1965, schemes like the CPF and the HDB (Housing and Development Board) that provides public housing have been two pillars of the republic’s prosperity.

Under a new environment, both are transformed and are now earmarked for the new social role of reducing poverty.

In perspective, few of Singapore’s elderly are homeless and street-sleepers are not as numerous as in Osaka or Los Angeles.

“In real life, the picture here is less gloomy because the majority of retirees live with their children,” said a social worker.

While not employed by any company, many are actually working in the “underground” economy – as private tutors, part-time plumbers and electricians.

This is PM Lee’s second big initiative that will change Singapore, the first being his decision to build two large casino resorts.

The measures have earned general praise, particularly the 1% CPF interest rise and the lifting of the retirement age to 65 (eventually 67).

“This will give me the choice to carry on working and earn my keep,” said a civil servant.

For the government, it has two benefits. Apart from having more old citizens working and being self-reliant, it will have a larger manpower pool needed to sustain growth.

But the compulsory annuity system, in its present form, could blow into a major crisis for the ruling party.

o Seah Chiang Nee is a veteran journalist and editor of the information website littlespeck.com

                                                      Home