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Post by me200 on Nov 30, 2013 10:30:12 GMT 7
A lot people fall into the Asset-Rich, Cash-Poor category. This is hard truth in this little red dot country. Some 'fortunate' people with fully paid up property (worth >$1M), but still 'poor' because of lack of regular income (cash flow). I term this as 'Happy Problem' as they still have option to liquidate their assets and downgrade to cheaper property and have adequate cash for retirement. Some mortgate term up to 70 years old, and they must continue to work pass their 'retirement' age of 62. The big question is can they continue to work till 70 with no reduction of income? They may not have enough money for their retirement. IMO, it is important to be prudent to have property fully paid up by 55. That's will give one a guide of how much to commit to a property by on his/her income (and future income but not guarantee). Asset-rich, cash-poor retirees speak up
They live in landed property but some are so cash-strapped, they hope for low-wage jobs and Workfare. Amid many calls on the public purse, how can their needs be addressed?
www.straitstimes.com/supplements/saturday-special-report/story/asset-rich-cash-poor-retirees-speak-20131130 |
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Post by me200 on Dec 5, 2013 8:29:11 GMT 7
Interesting ST forum discussion on Asset rich Cash Poor...
Defend principle of self-reliance
Published on Dec 05, 2013
ALL PARLIAMENTARIANS should seek to uphold the underlying ethos of self-reliance, self-awareness and self-control that continues to define Singapore's success ("Asset-rich, cash-poor retirees speak up"; last Saturday). Exceptions to the norm, where applicable, can and should be made.
However, it does not make sense for taxpayers to mollycoddle retirees with the means of taking care of their own material needs, especially those who own multiple properties and are complaining about the squeeze of progressive property taxes on their rental income ("Higher property tax will put squeeze on retirees" by Mr Ang Miah Boon; Nov 27) .
These landlords - who are seeking preferential tax treatment just because they are senior citizens who have contributed to Singapore's success - have many options to fund their retirement needs, including cashing in on their assets and, if need be, investing the fresh funds in financial instruments such as annuities.
The attractive returns on their real estate investments are partly due to Singapore's economic achievements over the last 50 years.
They should be grateful and spare a thought for those who are more deserving of public assistance.
According to MPs Sylvia Lim and Inderjit Singh, some retirees have formed an emotional bond with their homes and would like to live out their final years there.
I share their observation - as long as these seniors can afford to do so.
Singapore cannot afford to pander to every asset-rich, cash-poor retiree who harbours such sentiments, as our society ages.
It will also contradict our efforts at building HDB studio apartments and retirement villages to encourage prudence among senior citizens.
The same can be said of Mr Singh's argument that members of the asset-rich, cash-poor class deserve handouts because they did not enjoy public housing subsidies in the past.
It is akin to suggesting that all private property dwellers who have not enjoyed any housing grant from the Government, including myself, should have their Central Provident Fund savings topped up.
As Western Europe has shown, populist policies to address the age-old problems of welfarism have the nasty habit of backfiring on future generations.
Let us be very clear that this discussion is not about the rich versus the poor, or between private property dwellers and heartlanders.
It is about defending a very sensible principle of robust self-reliance against the emerging "cancer" of self-entitlement and "half-baked" egalitarianism across all strata of our society.
Toh Cheng Seong
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Post by me200 on Dec 5, 2013 8:32:12 GMT 7
Asset-rich, cash-poor retirees not at fault
Published on Dec 05, 2013
I DISAGREE with Professor Benedict Koh, director of the Singapore Management University's Centre for Silver Security, that the asset-rich, cash-poor phenomenon is an outcome of over-investment in property ("Asset-rich, cash-poor retirees speak up"; last Saturday).
It is our economic success in a fast-changing socio-economic landscape, accompanied by hyper-inflation and runaway property prices, that has created this problem.
What can asset-rich, cash-poor retirees do when the environment around them has changed so rapidly over the past few decades that they are unable to adapt?
Singapore has one of the highest home ownership rates in the world. Members of the "pioneer generation" worked very hard in order to buy their homes.
It is not their fault that their Central Provident Fund savings have become insufficient for their retirement because of high inflation and changes in Singapore's tax system, including the introduction of consumption tax and progressive tax. Many now find themselves living in one of Asia's most expensive cities.
A home is not a motel. Should an inclusive society force its elderly retirees to uproot from their homes and downgrade because of changed circumstances?
The Government should be more magnanimous towards these people. It should offer them lower health-care and eldercare costs, as well as other social benefits to lighten their burden in their "winter years".
Paul Chan Poh Hoi
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Post by candy188 on Dec 5, 2013 9:32:29 GMT 7
Interesting ST forum discussion on Asset rich Cash Poor... Defend principle of self-reliance Published on Dec 05, 2013 ALL PARLIAMENTARIANS should seek to uphold the underlying ethos of self-reliance, self-awareness and self-control that continues to define Singapore's success ("Asset-rich, cash-poor retirees speak up"; last Saturday). Exceptions to the norm, where applicable, can and should be made. However, it does not make sense for taxpayers to mollycoddle retirees with the means of taking care of their own material needs, especially t hose who own multiple properties and are complaining about the squeeze of progressive property taxes on their rental income ("Higher property tax will put squeeze on retirees" by Mr Ang Miah Boon; Nov 27) . These landlords - who are seeking preferential tax treatment just because they are senior citizens who have contributed to Singapore's success - have many options to fund their retirement needs,
~~ including Cashing in on their Assets and, if need be,
~~~ Investing the fresh funds in financial instruments such as annuities.  The attractive returns on their real estate investments are partly due to Singapore's economic achievements over the last 50 years. They should be grateful and spare a thought for those who are more deserving of public assistance.
 According to MPs Sylvia Lim and Inderjit Singh, s ome retirees have formed an emotional bond with their homes and would like to live out their final years there. I share their observation - as long as these seniors can afford to do so. Singapore cannot afford to pander to every asset-rich, cash-poor retiree who harbours such sentiments, as our society ages. It will also contradict our efforts at building HDB studio apartments and retirement villages to encourage prudence among senior citizens. The same can be said of Mr Singh's argument that members of the asset-rich, cash-poor class deserve handouts because they did not enjoy public housing subsidies in the past. It is akin to suggesting that all private property dwellers who have not enjoyed any housing grant from the Government, including myself, should have their Central Provident Fund savings topped up. As Western Europe has shown, populist policies to address the age-old problems of welfarism have the nasty habit of backfiring on future generations. ==> Let us be very clear that this discussion is
NOT about the rich versus the poor,
or between private property dwellers and heartlanders. ===> It is about defending a very sensible principle of robust self-reliance against the emerging "cancer" of self-entitlement and "half-baked" egalitarianism across all strata of our society. Toh Cheng Seong  I am surrounded with tons of rich retiree neighbours who downgrade from landed private estate with prudence view to enjoy their golden years with hard cash.  |
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