Retirement is one aspect the PAP failed terribly in, and their solution is to tell people to work longer. The Ministry of Manpower recently increased the Re-employment and Retirement Age, which is totally irrelevant and unhelpful to Singaporeans at all. Here’s why:
1) Most elderly Singaporeans are working in low income contract jobs which is no beneficiary of the act in the first place.
2) There are not enough decent-paying jobs to go around for elderly Singaporeans
3) Such act will only result in massive pay cuts
Point 2 is further worsened by the influx of cheap foreign labor and the lack of strict manpower laws to protect Singaporeans. The proposal by MOM is no solution, there is no indication retiring later equates to a sustainable funding for retirement, Singaporeans could well find they still barely feed themselves even after they have been dismissed by law as “retired”.
Delaying the retirement age is regressive and an indication that our standard of living have dropped further.From the graph above, it is clear Singaporeans living in 2013 today have to work longer into their twilight years as compared to the average Singaporean living in 1993. The entire retirement system, especially the CPF, is a broken one because it doesn’t makes sense that anyone not being able to retire after working for more than 3 decades.
The declining old-age-support graph should be no excuse that we need more foreigners, in fact, it is the other way round. From 2000 to 2011, the PAP ramped up the population by 25%, yet the old-age-support ratio continue to dip. It shows that no matter how many foreigners you bring in, you can never make up for the trend. The only solution is to work on birth rate, which is interestingly also not rising despite the record number of new citizens we have today.
The real solution to declining old-age-support is to abolish the PAP beliefs that welfare is a dirty word and people will be lazy when you give them a social safety net. We need a Minimum Wage, a pension system, universal healthcare, free education and other welfare more than ever. The PAP will only worsen the situation if they are kept in power with inept solutions like raising the Retirement Age. It is stupid, it is superficial, it doesn’t solve anything.