Abstract:

Examines how the rapid aging of the Singapore population, in particular in the next 25 years, will affect employment & social security, & suggests lessons from its social security system, the Central Provident Fund, that can be applied to other countries. The Central Provident Fund is a personal savings account for citizens based on equal contribution by employees & employers; it is withdrawable at retirement (age 55) or for such things as home ownership & insurance during the life cycle. Proposed advantages of the system include (1) individual & family responsibility for their own social security needs; (2) forced income savings; (3) accumulated national savings resulting in long-term economic growth; & (4) the avoidance of welfare. Some drawbacks to this system & its future developments are also explored.