Excerpts from Straits Times:
SINGAPOREANS are at the bottom of a ranking of retirement income from pensions in the Asia-Pacific region, says the Organisation for Economic Cooperation and Development (OECD).
And this is true at all income levels, according to the study, which covered 19 locations including Hong Kong, Taipei and Japan, The Business Times reported on Friday.
The Pensions at a Glance study, which also involved the World Bank, found that Singapore’s average gross replacement rate – the value of the pension as a percentage of earnings when working – is just 13.1 per cent.
Taipei has the highest gross replacement rate of 70 per cent, the report said.
‘This means that the gross pension income for average earners in Taipei is over two-thirds of their previous earnings level, whereas pensioners in Singapore receive less than one-seventh the amount of their earnings,’ says the study.
Singapore’s pension is provided by the Central Provident Fund (CPF).
See OECD’s report here.