Comparison of Singapore’s CPFLife and Denmark’s Pension Schemes against the world bank’s 5 pillar model
This paper seeks to analyse the ability of different pension systems to cope with the pressures of population aging. We chose 2 distinct pension systems: Singapore’s CPFLife and Denmark’s pension system where one is mainly self-funded while the other is financed by a pay-as-you-go structure. To ensu...
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| 格式: | Final Year Project (FYP) |
| 语言: | English |
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2011
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| 主题: | |
| 在线阅读: | http://hdl.handle.net/10356/44792 |
| _version_ | 1826109897137192960 |
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| author | Ang, Eunice Li Jun Lee, Kelly Cher Wei Kong, Melissa Sze Min |
| author2 | Chew Soon Beng |
| author_facet | Chew Soon Beng Ang, Eunice Li Jun Lee, Kelly Cher Wei Kong, Melissa Sze Min |
| author_sort | Ang, Eunice Li Jun |
| collection | NTU |
| description | This paper seeks to analyse the ability of different pension systems to cope with the pressures of population aging. We chose 2 distinct pension systems: Singapore’s CPFLife and Denmark’s pension system where one is mainly self-funded while the other is financed by a pay-as-you-go structure. To ensure that both systems are compared on a similar platform, we compared them with the World Bank’s 5 Pillar Model. This model was devised by the World Bank to evaluate the feasibility of different pension systems. In this model, pension systems have to fulfil 6 criterions: Sustainability, Adequacy, Affordability, Predictability, Robustness and Equitability. To investigate the ability of these 2 pension systems to provide for their people, we came up with 3 fictitious characters, each belonging to different income groups. We compared the payments to each pension scheme and the benefits received upon retirement. We also included supporting evidences such as replacement ratio and breakeven age to consider the financial burden on the state. Through our results, we discovered that the Singapore’s model is more pragmatic as compared to the Danish model which provides generous payouts to their retirees. However, the generous payouts to retirees in Denmark come at the price of higher income tax rates. Each pension system has its weaknesses in different areas which are improved through complementary policies. Hence, we conclude that there is no one perfect pension model that is suitable for every country and that a comprehensive pension system can adopt different structures, as long as they serve the needs of its people. |
| first_indexed | 2024-10-01T02:25:35Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/44792 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T02:25:35Z |
| publishDate | 2011 |
| record_format | dspace |
| spelling | ntu-10356/447922019-12-10T12:57:11Z Comparison of Singapore’s CPFLife and Denmark’s Pension Schemes against the world bank’s 5 pillar model Ang, Eunice Li Jun Lee, Kelly Cher Wei Kong, Melissa Sze Min Chew Soon Beng School of Humanities and Social Sciences DRNTU::Social sciences::Economic theory This paper seeks to analyse the ability of different pension systems to cope with the pressures of population aging. We chose 2 distinct pension systems: Singapore’s CPFLife and Denmark’s pension system where one is mainly self-funded while the other is financed by a pay-as-you-go structure. To ensure that both systems are compared on a similar platform, we compared them with the World Bank’s 5 Pillar Model. This model was devised by the World Bank to evaluate the feasibility of different pension systems. In this model, pension systems have to fulfil 6 criterions: Sustainability, Adequacy, Affordability, Predictability, Robustness and Equitability. To investigate the ability of these 2 pension systems to provide for their people, we came up with 3 fictitious characters, each belonging to different income groups. We compared the payments to each pension scheme and the benefits received upon retirement. We also included supporting evidences such as replacement ratio and breakeven age to consider the financial burden on the state. Through our results, we discovered that the Singapore’s model is more pragmatic as compared to the Danish model which provides generous payouts to their retirees. However, the generous payouts to retirees in Denmark come at the price of higher income tax rates. Each pension system has its weaknesses in different areas which are improved through complementary policies. Hence, we conclude that there is no one perfect pension model that is suitable for every country and that a comprehensive pension system can adopt different structures, as long as they serve the needs of its people. Bachelor of Arts 2011-06-06T01:04:22Z 2011-06-06T01:04:22Z 2011 2011 Final Year Project (FYP) http://hdl.handle.net/10356/44792 en Nanyang Technological University 45 p. application/pdf |
| spellingShingle | DRNTU::Social sciences::Economic theory Ang, Eunice Li Jun Lee, Kelly Cher Wei Kong, Melissa Sze Min Comparison of Singapore’s CPFLife and Denmark’s Pension Schemes against the world bank’s 5 pillar model |
| title | Comparison of Singapore’s CPFLife and Denmark’s Pension Schemes against the world bank’s 5 pillar model |
| title_full | Comparison of Singapore’s CPFLife and Denmark’s Pension Schemes against the world bank’s 5 pillar model |
| title_fullStr | Comparison of Singapore’s CPFLife and Denmark’s Pension Schemes against the world bank’s 5 pillar model |
| title_full_unstemmed | Comparison of Singapore’s CPFLife and Denmark’s Pension Schemes against the world bank’s 5 pillar model |
| title_short | Comparison of Singapore’s CPFLife and Denmark’s Pension Schemes against the world bank’s 5 pillar model |
| title_sort | comparison of singapore s cpflife and denmark s pension schemes against the world bank s 5 pillar model |
| topic | DRNTU::Social sciences::Economic theory |
| url | http://hdl.handle.net/10356/44792 |
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