In the 2016 MMGPI report, Singapore ranked highly, taking its previous grade from a C to a B. This is quite an increase, which equates to a jump from 64 to 67.4 in the pension retirement plans offered to residents who live in the country. Healthy increases are often the case when it comes to Singapore and the power index; in fact, it is the highest ranked country in Asia, and seventh in the world overall. It is only behind a few countries ranking higher and in hopes of continuing to increase that rank in years to come.
So, what can we attribute this increase to? Among the factors which have led to the steep incline are:
– Financial support offered by the government. An increase to the poor people in the country has really resulted in greater financial gains and prosperity for the entire country.
– Pension assets increases, for laborers who are elderly and ready to retire, is also a major contributing factor.
When those who are ready to retire can take care of themselves, and poor are getting assistance to improve their financial standing, these factors work together to create a more viable, healthier, and more sustainable economy for the entire country of Singapore.
Right track towards success –
An 80 is required to achieve an A grade, and Singapore is going in the right direction in hopes of attaining such a grade. It is of such high standards that only two nations in the world, Denmark, and the Netherlands, have achieved such status. So, Singapore has set lofty goals in order to reach the mark, and in order to eventually sustain it once they do reach the pinnacle of financial success for the residents of the country.
“We aren’t the best globally. Even though a steady increase since 2015 has taken place in the country’s pension and retirement system, there is still plenty of room for improvement. And, in that improvement, we are going to see that jump from the B to the A grade we are hoping to achieve.” We can further create incentives for companies to provide CBF pension plans for non-residents, who comprise a major portion of the country and the economy. Neal Narale, who is the Mercer Marsh Benefits Leader notes these points for Singapore to increase their grade, and to create the needed influx in the country as well, to ensure financial prosperity going forward.
Investment return schemes and other entities in the country are pushing Singapore towards the right direction. Narale went onto say that the Silver Support Scheme is just one such scheme, which will be introduced this year, to help with CPF retirement plans. This and other incentives which companies and employers can offer going forward are going to do wonders for the country as it is moving ahead, and hopes to improve its financial standing in the near future.
Increased life expectancy –
Increased life expectancy is also something that has to be added to the equation; not only are people living nearly a decade longer (about 8.4 years) than they did a few years ago, this is something that is happening throughout the world. And, it is going to increase the amount of money which retirees are going to require, in order to take care of themselves, and to provide for their families, when they are finally ready to retire and stop working.
Many do not expect to change their age of retirement because of this; so, it comes with an increased pressure on the government, and financial entities, to ensure that these retirees are going to have what they need in order to survive and to thrive. With the right pension plans in place, and the right sources like moneylenders that the retiree can turn to, there are a number of ways in which the country can continue to thrive, and to improve on its financial standing, by making the right decisions with CBF as well as other retirement plans and pensions it offers to its residents as well as to non-residents who are living in the country.
Where can improvements be made? –
Yes, Singapore is going in the right direction and has already taken massive leaps in their economic standing; however, this does not mean that there is no room for growth. In fact, there are a number of ways in which the country can turn, in order to ensure retirees are ready for their future and are going to thrive as they age as well. So they will not have to worry about how to pay their bills or worry about how they are going to support their families. The right pension plan options are the first step the country can take in an attempt to improve and to increase their financial standing.
In addition to this, some areas where improvements can be made in Singapore are:
– Lower barriers for tax groups to be established. In doing this, more options are available, and the wealthy can easily be spread out to the groups and to the people who most need it in the country.
– Companies can improve offerings of retirement plans. And, they should incentivize their employees who choose to join a retirement package. Not only will this stimulate growth, it is also going to help spread out the wealth for the company, as well as for the retirees who are ready to stop working.
– Extend the CBF to non-residents. If they are working, and plan to thrive and live, and eventually retire in Singapore, they should also be able to receive the same incentives, and pension packages, when the time comes for them to retire from working with a particular employer for several years.
Singapore has made great leaps in their financial gains and standing, this, however, does not mean there is no room for growth. These are a few of the areas where improvements can be made, to further increase the leaps already made, and push the country to the A-standard it wishes to achieve.