Annuity and char kway teow logic
What is annuity? It is like taking a big sum of money to give to someone to invest for you and promise to pay you a small sum till you die. So Ah Pek will take his $100k to an insurer to manage and invest for him with a promise. In the meantime Ah Pek must hope that the insurer will not go bust or run away. And also the insurer is smart enough to make more money than he can afford to pay his management fee and Ah Pek. If the insurer lost money in his investment, then trouble starts. Buying annuity requires a lot of faith and hope. Is it really worth it? And how much does it cost the govt to look after some of the oldies who are above 85 years old? Not every oldie will need govt charity. Only some. What does the statistics of today's oldies above 85 say? How many are dependent on charity or have their own means of living? I think one plate of char kway teow will be enough to provide for all the oldies that are destitutes and without any dependent to fall back on.