atans1

Why CPF annuity will begin at 75?

In CPF on 25/08/2017 at 4:24 am

By the early 2000s the state of health of American men aged 69, as reported by themselves, was as good as that of 60-year-olds in the 1970s; 70 really does seem to be the new 60.

Economist

So if liddat can work until 75 meh?

So if the PAP wants to raise the age when we can get our CPF annuities, it can quote the BBC and the Economist, its bible of Hard Truths for intellectual support.

In 1948 the average 65-year-old could expect to live 13.5 years.

People retiring now can expect to live much longer – 22.8 years.

If the trend continues as expected, today’s young people can expect to live into their early nineties.

Imagine the amount of money you spend on a pension is a pot of jam. Either you spread it far more thinly in future over more years – meaning a lower annual pension – or you are going to need a much bigger pot.

BBC

And

The Oxford English dictionary defines “old” as “having lived for a long time”. It illustrates the sense with an accompanying phrase, “the old man lay propped up on cushions”: the old person as one who has made all the useful contributions he can possibly make to society and is now at rest. When pensions were first introduced in Prussia, in the 1880s, this was probably a fair characterisation for anyone over 65. Not many people lived beyond this age; those who did were rarely in good health. But today many 65-year-olds are healthy and active. Donald Trump (71) may be many things, but old he is not, nor for that matter is Vladimir Putin (64), who qualifies for his bus pass in October. Yet governments and employers still treat 65 as a cliff’s edge beyond which people can be regarded as “old”: inactive, and an economic burden.

This is wrong, for three reasons. First, what “old” means is relative. Life expectancy has gone through the roof since Otto von Bismarck pioneered the Prussian welfare state. Today the average 65-year-old German can expect to live another 20 years. So can most people in other rich countries, meaning old age now arguably kicks in later than before. Second, the term carries an underlying implication about health, or at least fitness. But healthy-life expectancy has grown roughly in tandem with life expectancy; for many, 70 really is the new 60. Third, surveys show that the majority of younger over-65-year-olds increasingly want to stay actively involved in their communities and economies. Few want to retire in the literal sense of the word, which implies withdrawing from society as a whole. Many want to continue working but on different terms than before, asking for more flexibility and fewer hours.

https://www.economist.com/blogs/economist-explains/2017/07/economist-explains-7

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  1. which is why UK moved the pension drawdown age to 69 for those born after the 70s and Norway is thinking about 70.

  2. That’s why S’pore moved the CPF withdrawal age from 62 to 65 when PAPies implemented the “re-employment age” at 62-65. (The 55 — > 60 — > 62 changes were at least accompanied by changes to the official retirement age)

    With re-employment age now 62-67, it’s only a matter of 1 more GE before they increase the CPF withdrawal age to 67 as well. CPF Life follows the mandated withdrawal age as the earliest starting age for payouts.

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