Quote:
Originally Posted by chubbybastard
I would avoid scandinavian model because their model involves taxing the young and productive to the max (up to 50% tax rate) to subsidize the older folks. This would cause the ypunger folks to just leave and seek employment elsewhere
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We are not using the Pay as You Go pension system where the sandwich generation takes care of the retirees. Neither are we using the defined benefit method. China's 养老金 is doomed to fail in the mid-2030s as they made wrong assumptions in their projections. Their people are living longer and the investment returns from the Chinese companies are much lower now.
We are in a hybrid situation where each cohort turning 55 sets aside their own set of CPF Life. Each set of CPF life is run like a separate fund. The tax burden also shifts to indirect taxation like GST. While there are still no capital gains tax or estate duty, a tax (stamp duty) is charged if properties are transferred to beneficiaries who own properties.