Comments on: The Issue of Annuities http://nedstark.wordpress.com/2007/08/31/the-issue-of-annuities/ "The Kingsguard do not run. Then or now. We swore a vow." "If you would take a man's life, you owe it to him to look him into his eyes and hear his final words. And if you cannot bear to do that, then perhaps the man does not deserve to die." Ned Stark Tue, 03 Nov 2009 12:57:13 +0000 http://wordpress.com/ hourly 1 By: guojun http://nedstark.wordpress.com/2007/08/31/the-issue-of-annuities/#comment-398 guojun Sun, 02 Sep 2007 07:52:33 +0000 http://nedstark.wordpress.com/2007/08/31/the-issue-of-annuities/#comment-398 no, it is not right. Of course, advances in medical technology have been considered as well, and a rise in retirement age is definitely a trend we will see around the world as life expectancy rises. However, annuity payouts after most of us are supposed to be dead? And a compulsory one at that! So the money which we can't draw if we unfortunately die 1 day before our 85th birthday will go to the government? I wonder why we let ourselves get semi-swindled in the name of it being good for us time and time again. Like you, i agree that annuities may be viable, if the payout age is, say, 75 or 80. At least then, people wouldn't grouse so much. Like i am grousing now. no, it is not right. Of course, advances in medical technology have been considered as well, and a rise in retirement age is definitely a trend we will see around the world as life expectancy rises. However, annuity payouts after most of us are supposed to be dead? And a compulsory one at that! So the money which we can’t draw if we unfortunately die 1 day before our 85th birthday will go to the government?

I wonder why we let ourselves get semi-swindled in the name of it being good for us time and time again. Like you, i agree that annuities may be viable, if the payout age is, say, 75 or 80. At least then, people wouldn’t grouse so much. Like i am grousing now.

]]> By: Ned Stark http://nedstark.wordpress.com/2007/08/31/the-issue-of-annuities/#comment-395 Ned Stark Sat, 01 Sep 2007 03:28:42 +0000 http://nedstark.wordpress.com/2007/08/31/the-issue-of-annuities/#comment-395 Mr Wang, I see what you mean. If that is the case then perhaps this annuity is not so bad as perceived. However the idea that the payout age is 85 while our life expectancy is lower doesn't seem or feel right. Mr Wang,

I see what you mean. If that is the case then perhaps this annuity is not so bad as perceived. However the idea that the payout age is 85 while our life expectancy is lower doesn’t seem or feel right.

]]> By: mr wang says so http://nedstark.wordpress.com/2007/08/31/the-issue-of-annuities/#comment-394 mr wang says so Fri, 31 Aug 2007 22:56:13 +0000 http://nedstark.wordpress.com/2007/08/31/the-issue-of-annuities/#comment-394 Life expectancy at 82 means that a fair % of persons will live past 82 years. 82 years is just average. Lowering the age to 75 serves no purpose because those between (a) 62 or 65 years) and (b) 82 years already get their monthly payout from their minimum sum. The life annuity is meant to provide a monthly payout for those who live past 82. The point about medical technology is often misunderstood. We are not talking about "cutting edge" technology today. We are simply talking about the technology that will be available 10 or 20 years from now. What is expensive today will become cheap, standard and usual technology tomorrow. One must not be so quick to equate poor to old, or even rich to longevity. The participation of all Singaporeans (rich or poor) in the annuity scheme is in fact beneficial to the poor, since this massive participation greatly lowers the cost of the annuity. Life expectancy at 82 means that a fair % of persons will live past 82 years. 82 years is just average.

Lowering the age to 75 serves no purpose because those between (a) 62 or 65 years) and (b) 82 years already get their monthly payout from their minimum sum.

The life annuity is meant to provide a monthly payout for those who live past 82.

The point about medical technology is often misunderstood. We are not talking about “cutting edge” technology today. We are simply talking about the technology that will be available 10 or 20 years from now. What is expensive today will become cheap, standard and usual technology tomorrow.

One must not be so quick to equate poor to old, or even rich to longevity. The participation of all Singaporeans (rich or poor) in the annuity scheme is in fact beneficial to the poor, since this massive participation greatly lowers the cost of the annuity.

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