Thursday , May 6 2021

MOM: CPF payments are determined by the actual models of household expenditures

The Ministry of Human Resources (IOM) defended itself in the mainstream media this week (method Different Method Used to Calculate Mortgage Payment Amount: MOM ', July 8).

Remarks from the IOM came out in the light of a recent study by a group of researchers from the School of Public Policy, Lee Kuan Yu, that took place two months ago at the NUS. The team under the guidance of Associate Professor Ng Koka Hee has revealed that an elderly Singaporean over 65 will need $ 1,379 a month to meet their basic needs.

In particular, the group found that household budgets needed to meet basic needs amounted to $ 1,379 per month for older households, $ 2351 per month for old couples and $ 1721 per month for a person aged 55 to 64. Note that the sum is that the elderly person is in good health.

The amounts were obtained from focus group discussions involving over 100 participants with diverse backgrounds and using a consensus-based methodology known as the MIS (Minimum Income Standard). Participants generated lists of goods and services that were considered to be a major need through a common consensus. Each item or service was included only if the participants agreed that it was a basic need and could explain why it should be included.

They included personal hygiene, as well as leisure and cultural activities, as the participants agreed that the basic needs went beyond the boundaries of existence. After that, the budgets of households were determined from these lists.

Prof Ng said: "Such income standards can help by translating social values ​​and real experience into unambiguous and significant benchmarks that politics may want to pursue."

MOM behaves defensively

Instead of congratulating the research conducted by the LKYPP team in helping to identify future policy changes, MOM has defended itself by explaining that it uses the "other" method when it receives CPF payments – monthly income for people over 65 to survive in Singapore

Sean Goch, director of IOM pension systems, said the study was "helpful for personal planning of goals and pension planning." However, the methodology used by LKYPP is fundamentally different from the government's method for obtaining CPF Life payouts, he said.

Goh did not say if the MOM agrees with the proposed $ 1379 as a benchmark for the age requirement. He said that SPS pension amounts and related payments were established by studying the actual models of expenditures reflected in the Household Expenditure Survey (HES), which is conducted every six years.

This was done on the advice of experts from the Consultative Group of the SLA, said Goh. "The need for individuals is changing, and members must plan their retirement, based on the required monthly income," he added.

Those who expect to spend more on retirement can also postpone more savings in their WBP, and Singaporeans can supplement their SRF payments by other sources of income, such as private savings, and support for the family, community and government, he said.

Of course, Goh forgot to mention that another source of income for older Singaporeans is insufficient CPF payments to continue working until they fall. Already Senior Health Minister Amy Khor wants more elderly Singaporeans to continue to work for their "low back" compensation in Singapore.

"It brings opportunities for greater participation in the workforce at an older age, and this is important for a country like Singapore, where the birth rate is relatively low," she said at an international conference.

The monthly CPF BSE is less than $ 800

At present, the monthly payment for the basic pension amount (PDB) corresponds to the average cost of households of pensioners per household member for the 21st and 40th percentiles.

For PFR, the members of the PSA would have to lease their property to the PSA Board. For those who exceeded 55 this year, BRS is $ 88,000, and the monthly payment of 65 is only $ 700 +.

Many elderly people can not even meet PDB. For example, the 60-year-old Lim Koch Leong, whose difficult situation was covered in social networks, recently has only $ 70,000 in his PSF. He wanted to take $ 15,000 to fund the education of his daughter, but he was rejected by the CPF Board. In the end, he appealed for help to his family members.

Thus, in Mr Lima's case, after 5 years when he reached 65, his monthly payment would probably be less than $ 700 because he could not even meet BRS.

It is obvious that those who can not work or monthly attract only a few hundred dollars of scanty payments to the KPF will be forced to significantly reduce their monthly expenses.

For example, last year in the media it was reported that a 62-year-old housewife, Zhuang Peck Yah, who lives in the condo in Bukit Tim, attempted to darken the ceiling light to maintain utility costs. She even thought to do laundry in a day, not every day. Similarly, the 46-year-old taxi driver Kent Kia was "extra careful" in spending on their households, and his family was trying to "save where [they] may ".

Perhaps director Goh expects summer elderly Singaporeans to use public toilets in coffee shops and entertainment centers to save on water, cute and toilet paper for their natural challenge. For food, he may expect his elders to eat herbs daily, helping NPark save on labor to cut grass at the same time.

Source link