Singapore's pension system has kept its top spot in Asia in an annual global index for the 16th consecutive year and achieved the second-highest grade of B* for the second year in a row.
Despite its strong performance, the Republic will have to address challenges arising from its low birth rates and increasing life expectancies to ensure the long-term viability of the Central Provident Fund (CPF), said pension expert Mercer and other analysts.
In the 2024 Mercer CFA Institute Global Pension Index, CPF climbed two levels to fifth spot among the 48 retirement systems that were reviewed. Singapore remained top in Asia, while the Netherlands took the overall No. 1 spot in the index, which has been tracking global pension systems since 2009.
On the sustainability sub-index, which measures if a nation's pension system can keep delivering, CPF ranked sixth globally and top in Asia.
Mr Chong Chee Loong, who heads Mercer's wealth business in Singapore, said CPF has several strong features that position it close to an A-grade rating.
For instance, CPF scored well on the integrity sub-index, which is a measure of whether the pension system can be trusted.
Mr Chong said: "Singapore has a strong regulatory framework in place to protect the interests of pension scheme members."
He added that addressing Singapore's demographic challenges will be crucial for maintaining CPF's viability.
Singapore's population is ageing at a faster pace compared with the last decade.
The Population in Brief 2024, an annual publication by the National Population and Talent Division and partner agencies, showed that the proportion of citizens aged 65 and above rose to 19.9 per cent as at June 2024, from 19.1 per cent in 2023 and 12.1 per cent a decade ago.
By 2026, the Republic is expected to become a super-aged society, with 21 per cent or more of its population aged 65 and above.
هذه القصة مأخوذة من طبعة November 27, 2024 من The Straits Times.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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هذه القصة مأخوذة من طبعة November 27, 2024 من The Straits Times.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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