UK pensions spending £164.7b: S’pore 0?


Do CPF inflows to the Government exceed the outflows every year?

After writing “UK’s % of GDP public healthcare spending 4x S’pore’s?” (Jun 18) – someone asked me what about pensions?

Well, “For the fiscal year ending in March 2019:
UK pensions spending is budgeted to be £164.7 billion”.

In contrast for Singapore, since almost all of our CPF is our own money (contributions) – the Government may not be spending any money on pensions.

From a cashflow perspective – we may also not be spending any money on pensions, as the inflows (contributions) exceed the outflows (withdrawals) every year?

Moreover, an undisclosed part of the returns derived from our CPF funds has been kept by the Government – and is estimated historically to be about 40 per cent of the annualised returns.

A friend asked “but what about the high taxes in the UK”?

Well, from a cashflow perspective – if you track the total inflows (CPF contributions, profits from public housing, GST, indirect taxes (COE, maid levy, etc), etc, from the people to the Government – they may exceed the total outflows from the Government to the people (education, social welfare spending, etc).

Leong Sze Hian

About the Author

Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.