WHEN European companies retired older workers early to survive an economic downturn in the 1980s, it changed societal attitudes that made it harder later for older people to be employed.

Singapore should avoid taking such an approach, said the minister in charge of ageing issues, Mr Lim Boon Heng said on Friday.

RELATED LINKS  EXCERPTS OF SPEECH BY MR LIM BOON HENG

'Learning from past experience, it would be a huge policy error if we try to solve the unemployment problem, caused by the downturn, through early retirement.

'Employers should not use age as a factor should they need to reduce headcount to save on wage costs,' he said.

'Countries in Europe made the policy error in the 1980s, and now find it difficult to raise the employment rate of seniors when it is apparent that people need to work longer.'

Mr Lim, a Minister in the Prime Minister's Office, gave this warning at the close of a two-day Reinventing Retirement Asia conference on Friday.

He also dwelt at length on the need to strengthen the financial security of seniors.

Apart from equipping all Singaporeans with financial literacy and budgeting skills, policies also need to be designed to encourage people to prepare financially for their future, he said.

He suggested that more thought be given to the value of annuities 'as a hedge against longevity'. Annuities guarantee a constant income for life but have not been very popular because of lower returns.

He noted that the CPF Life compulsory annuity scheme only provides basic coverage. Calling for its enhancement, he urged private insurance companies to offer add-ons over or riders to supplement the cover provided.

Mr Lim also called for a mindsets change on ageing, stressing that seniors are 'healthier, better educated and have much still to contribute'.

'Their best work may not even have been produced,' he told the conference.

'But social and cultural barriers are still present, in Singapore and elsewhere, limiting the full role that older people can play in society.

'Everyone - the public, private and people sectors - with the support of the media, have a role to play in improving perceptions and dispelling stereotypes against older persons.

'I hope that one day, we can say that Singapore is truly an age-blind society, where we assessed based on performance, not on age, and where people contribute to the fullest of their abilities and functions.'