Seniors to enjoy payouts from 2016

This post came out from The Straits Times (18 Aug 2015)

A new law detailing the framework and penalties for the Silver Support Scheme that was unveiled in this year's budget has been passed. This paves way for 150,000 eligible Singaporeans, aged 65 and above, to get a quarterly payout of $300 to $750 from early next year.

The scheme's administrator - the CPF Board - will develop a system to automatically assess a person's eligibility, and to make payments to recipients. A commissioner will also be appointed to, among other things, review appeal cases.

Information will be pulled from government databases for means testing. But safeguards will be put in place, and Singaporeans may opt out from this process, said Manpower Minister Lim Swee Say yesterday.

The scheme will be permanent and will apply to "both current and future generations" of elderly people. Mr Lim will also look into Dr Fatimah Lateef's suggestion to allow payouts to authorised third parties or next of kin of those who are unable to directly receive the benefits.

The law will also make it an offence to provide false information to qualify for Silver Support benefits, or to receive a higher quantum. Those found guilty face a maximum $5,000 fine and a year in prison.

Thoughts:

1. As we progress into a more ageing society, there definitely will have to be in place schemes to help those seniors that faces challenges in their daily living. The programme is automatic in nature, thus making it a hassle free process for the seniors who might not be aware, or do not know how to apply the scheme. I feel that this is a good improvement from previous days when only people who put up for applications will get the help. 
2. The next challenge is then, how to finance the scheme. More elderly, more payouts. The Government also wants to have a balanced budget/ not dip into reserves to fund it too. This also will not come to compromise our economic growth and the taxes that we are paying. Tough call I feel. Unless Temasek Holdings can have sufficient positive investment returns to help this out!

Thoughts anyone?

Yours,

Something Small Thinking Big