We refer to the OECD paper on pensions spending.
OECD countries’ pensions spending?
It states that “Public spending on old-age benefits averaged 7.8% of GDP in 2009, compared with private pension benefits of an average of 2.2% of GDP in the same year (in the countries for which data are available over the period 2004-10).
Public spending on old-age pensions is highest – greater than 10% of GDP – in Austria, France, Germany, Greece, Italy, Japan, Poland, Portugal and Slovenia. By contrast, Australia, Iceland, Korea and Mexico spend 4% of GDP or less on public old-age pensions.”
Singapore does not spend any money?
- As Singapore’s CPF system is essentially contributions by the people – does it mean that our government pensions spending is almost zero?
Annual contributions exceed withdrawals?
Also, annual contributions has and continues to exceed total annual withdrawals.
Implicit tax on CPF?
Moreover, we are the only country in the world which keeps excess annual returns – estimated to be about 3% – to itself, at the expense of the pension scheme’s members.
S Y Lee and Leong Sze Hian