Tuesday, September 4, 2007

Compulsory Annuities and sharing wives/husbands

Doctor: I've got your ECG results.

Patient: So how's the condition of my heart Dr?

Doctor: I see that you are suffering from cardiac arrhythmia. It is a condition which your heart has an abnormal rhythm.

Patient: Oh i see Dr. You should prescribe me some Verapamil, a calcium channel blocker. I'm a pharmacologist you see. I understand that Verapamil is one of the best drugs out there for cardiac arrhythmias...........

Doctor: Yes yes. But first i would need to run further tests to............

Pharmacologist: I did my PhD on calcium channel blockers. I have a better knowledge of Verapamil's efficacy than you. Verapamil is indeed the drug of choice for my condition. I completely understand the mechanism of that drug action and i don't see why you are holding off prescribing that drug to me.

Doctor: You see I need to check if there is any underlying cause for your condition that can be corrected before..............

Pharmacologist: Dr, you are still unable to understand my point of view. There is no doubt that Verapamil will greatly benefit my cardiac arrhythmia. I guess since you do not have a comparable knowledge of Verapamil as I do, I see no point in discussing this further with you.

Doctor: There could be a primary cause for your cardiac arrhythmia, such as excessive potassium levels in your blood. I need to run other tests to rule out any potential underlying cause first. It is better that i treat the patient and not just the symptoms.

Pharmacologist : I simply don't understand why you are unable to see the benefits of Verapamil!!!! Goodbye Dr.

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When seeking a solution to a problem, it is always better to solve the root of the problem, not just the manifestations of the problem.

Similarly when it comes to problems such as retirement for Singaporeans or rather the inability of Singaporeans to retire due to insufficient retirement funds, the origin of the problem must first be identified. Despite saving a very significant portion of one's salary in the CPF for decades, it is mind boggling that one is still unable to retire comfortably. Especially if you consider that 4 decades of compounding 34.5% of your salary does not yield you sufficient retirement funds.

So while the Compulsory Annuities Scheme ensures that all will have at least a paltry sum of money should they live too long for their own good, is it masking a greater problem? Has it got to do with the labour situation in Singapore? Or even the political situation in Singapore?

How about other problems that it creates, such as stripping the freedom of choice from Singaporeans? If it is alright to have "Longevity risk" pooling, is it alright to have compulsory house pooling if Singaporeans are unable to afford housing? How about food pooling if we are too poor to afford food? Swimming pool pooling maybe? Maybe if the birth rate of Singapore continues to be low, we should have husband pooling or wife pooling. It's for the greater good after all.

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