jcfh88
Joined: Feb 25, 2002
Posts: 2 | Posted: 2002-02-25 12:22
In response to the President's challenge 2001 my contribution is this idea of Compulsory Insurance for all Singaporeans.
Nowadays most teenagers and young adults indulge themselves in posh restaurants and expensive hair salons besides sporting branded clothings and accessories.
It seems that they just spend without giving thought about their future. Yes I agree that spending is good for the country's economy but what about savings for retirement ?
Confirmation is given that the CPF savings is not enough for retirement and based on observation we see many senior citizens working at McDonald outlets in addition to labouring as cleaners as well as security guards.
They have to work as they do not have money for their retirement. If they give the excuse that they are bored then how come they do not perform voluntary work or go on overseas or local holidays.
Since Singapore cannot afford to be a social welfare state then there will be a great problem facing our young generation if they carry on spending without saving.
A possible solution to arrest this issue before it is too late is the implementation of Compulsory Insurance for all Singaporeans and Permanent Residents.
Assuming that the following will be made mandatory ;
Before reaching 25 years old, every Singaporean must buy a whole-life policy.
By 30 years old, every Singapore citizen needs to purchase an endowment policy and before 35 years old they have to invest in an Investment-Linked Policy.
If the above would materialise then maturing Singaporeans might not face severe retirement problems as they will have protection, savings as well as investment returns.
Just like caring parents who will ensure that their children will be well taken care of, the authority should educate the public in the wisdom of financial planning. The recent publication of the free booklet on Financial Planning is not enough.
Besides Compulsory Insurance, the Income Tax Department should hold Compulsory Financial Planning Appreciation Talk for those who turn 21. As an independent authority, which will not stand to gain anything from such presentations, people will consider insurance seriously and not merely purchase the minimum Compulsory Insurance just to satisfy the legal requirements.
What prompts me to write this contribution of Compulsory Insurance was a woman who came to my place to sell packed food. She begs me to help her as her husband had just passed away and she have to support her children. Helping her once will not solve her dilemma as the problem lies in her husband not having insurance.
It is only when the present young generation reached retirement age then they will appreciate the efforts of enforcing Compulsory Insurance.
Thank you very much for your time and effort in reading this letter.
If you have a better solution to social welfare scheme then please let me know so that I can champion it otherwise please support the idea of Compulsory Insurance !
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