Monday , March 8 2021

It should increase the CPF contribution rate for workers over 55: PAP Seniors Group, Economy News & Top Stories

SINGAPUR: A group of the People's Party of Action (PAP) that defends the causes of the elderly demands different changes in the way they work, retire and live the elderly.

Among other things, the PAP Seniors Group (PAP.SG), led by President Tan Chuan-Jin, proposes that the contribution rate of the Central Providence Fund (CPF) for workers over 55 years of age increase to 37 percent.

This is the rate that is now 55 years old and younger.

Currently, workers receive lower CPF contributions for more than 55 years.

Those over the age of 55 to 60 years see an FPF share of 26 percent of wages, and employers contribute 13 percent. This is less than 17% that employers contribute to workers 55 and under.

Workers over the age of 60 to 65 years receive a contribution rate of 16.5, with employers who contribute 9%.

Those over the age of 65 have a share of 12.5%, and employers only contribute 7.5% of the salaries.

"With a longer life expectancy and a smaller family support base, those in Singapore need to be even more self-sufficient to ensure a flow of life-long income for retirement," the group said at a conference of press on Wednesday (January 30) at the headquarters of the PAP in Bedok

In its 21 page position document, which will be submitted to the Government later that same day, PAP.SG affirms that self-sufficiency can be achieved through a "combination of compulsory and voluntary contributions from the CPF, as well as a good financial planning ".

Increasing the CPF contribution rates for workers beyond 55 would help raise their retirement adequacy, the document said, adding that it would also ensure that older workers pay the same as their younger colleagues for do the same job

So, who is the spokesman of the House, a motion was made on the issues raised in the document at the next session of Parliament on February 11.

The PAP.SG document comes a few weeks before the budget statement is delivered by Finance Minister Heng Swee Keat on February 18.

Heng had previously said that the Budget will focus on areas where Singapore's needs are growing, including healthcare, education, security and defense.

In addition to the call to increase the CPF contribution rate for older workers, PAP.SG said that flexible work arrangements were needed to encourage older people to continue working, if they want to.

"While many of our older workers want to, and can continue to work full time, some prefer to work less intensely through part-time work or flexible work arrangements," the group stated in the document.

Policies are already available so that older workers have more job opportunities, with subsidies to help industries redesign jobs for older workers, as well as to train and acclimatise to new industries.

"Where we can improve is to promote the adoption of these efforts in more industries," said the group, who added that in a tight labor market, older people represent an additional potential work .

"While we are in a good position today, there is more that we can do to eliminate obstacles to our larger workers."

The document also proposed to employers receive more help to manage the costs of recruiting seniors.

Nee Soon Vice President, Henry Kwek, said at the press conference that the rise in the distribution economy could mean more job opportunities for the elderly, but should receive help in accessing these roles , for example, promoting digital literacy.

On the front of the house, the group suggested revising the development guidelines to encourage private sector developers to establish senior group homes that had healthcare facilities.

One way to do this, Kwek said, is to have a land use category for private developers who want to build these homes, so they do not compete with other forms of residence and can maintain affordable costs.

Dr Chiang Hai Ding, former MP of the PAP and member of PAP.SG, added that these group houses can also be built in blocks of the new or existing Board of Trustees.

PAP.SG said in his article: "We recommend that (the authorities) consider a trial of small-scale group houses for the elderly in our existing public assets. This can be manifested in the conversion of several units ".

"Advancing, our elders want more diverse housing options. Many older people prefer to maintain their independence and age," the newspaper adds.

Other suggestions include the provision of a subsidy for full-time caregivers of fragile, old parents or relatives.

But the focus of the document is on how older people can continue to work.

Claire Chiang, a member of the PAP.SG resource panel, said on the margin of the event: "Everything we are doing now is preparing the way for younger people as they get older."

In 2030, he hopes that one in four Singapore citizens is 65 and older, between one in seven at the moment.

Mrs. Chiang, the co-founder of Banyan Tree hospitality group, added that more and more workers here are healthier and physically capable of performing tasks and want to continue working.

"This is really about creating a culture of attention and respect for talent aging … The sooner we find out how to maximize such talent, it is best for Singapore as a small nation, where the Human capital is an invaluable resource, "she said. finger

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