|Janadas Devan of IPS,|
son of late President.
Spreading fear that old man need people to look after
Recently, we have been receiving frequently bombardment of sinking into the despair aging society that only FT can bail us out. Old man are being described as some burden that requires the support from working adult.
Janadas Devan of IPS said that "you are going to see support ratio and percentage of your working population decline".
My grandfather need my support?
But I really found it quite puzzling. I live with my grandfather who is 100x richer than me. He funded my university, gave me a Porsche the day I got my driving license and a condominium. Instead of me supporting the old, I think is the other way round as my grandfather is giving me S$10,000 every month. (fiction)
Aging society is a problem especially in Europe largely due to its pension system
In Europe, due to the pay as you go pension system, aging society would contributes to financial trouble. The old Europeans need wealth transfer from the productive young to survive. In Europe, the old has little savings.
Singapore's old people is a gold mine
|Are you being supported by young people or |
are yousubsidizing your children
As long as the old are able to support themselves, they behave like a gold mine. Due to the CPF system, and high saving rates, "in theory" the more people ages the better in some cases.
Instead of transferring wealth from the workers to the old, the reverse happen. The old would start spending on health care, leisure...etc all out of their own pockets creating plenty of jobs for the young people.
Best scenario is the old found themselves so much monies that they actually transfer their wealth to the young as gift, just like my grandfather did to me. Even some of the poor old Singaporeans did not burden anybody. They work hard no matter how miserable the wages. Others indeed rely on their offsprings or society for support.
In the next decades, all Singaporeans are expected to retire with either CPF or housing assets. So, we should not have a serious aging issue. In practice, we have a problem. (will discuss in part 2, you guess who sabotage us)
In many countries, retirement is a big business
Countries like Thailand are destinations for retirees from Japan and western countries. The more old men coming to Thailand, the better for them. The old retirees stimulate consumption and create jobs. Many old men took young Thai wives and when they died, huge amount of wealth are transferred to their Thai wives.
Kuan Yew stated that "there would not be enough people to look after the old and work the economy at the same time". In theory, 100% of the productive adult in a country can work just to take care of the rich retirees and do nothing else. It itself is a lucrative business.
So is aging society good or bad?
Aging society economics is paradoxical. In addition the elites do not want you to understand the subjects. Part 2 will further explain.