Singapore needs to strengthen second and third pension pillars
Singapore’s corporate and private pension systems need to be reinforced to mitigate the financial deficiency in its fundamental pension system, according to Fullerton Fund Management (Fullerton), the asset management arm of Temasek Holdings, the city state’s sovereign wealth fund.
Vincent Chan, co-head of multi-asset at Fullerton, says the fundamental pension scheme, or the first pillar of the pension system, is currently the main focus of retirement savings in Singapore. The Central Provident Fund (CPF), the city state’s compulsory pension fund, plays a key role here.
But heavy dependency on CPF Life, the CPF scheme which provides senior citizens with monthly payouts, may not be adequate to fund their needs, especially as retirees generally need to replace 60%-70% of their pre-retirement income, Mr. Chan says in an interview with Asia Asset Management.
Read more HERE: Asia Asset
