​​WP's proposal to spend 60% of NIRC on current generation is | Singapore Matters

​​WP's proposal to spend 60% of NIRC on current generation is not only unfair to future generations, it is also decidedly deceptive.

Their proposals will result in even less savings than you think.

They propose TWO ways to dip into the reserves.

First they propose to SUBTRACT from the reserves by spending land sale proceeds directly instead of reinvesting the proceeds to generate a stream of income..

Once spent, the proceeds are gone, and there are fewer assets to reinvest.

So the 40% of NIRC saved for future generations is less than what it would have been if land sale proceeds had been reinvested.

When you factor in the need to hedge the reserves against inflation, the amount saved for the future is not fantastic.

What WP is doing is to kick the can down the road for th future generations to pick up. Who belong to the future generations?

They include those who are still in school today, the babies, and toddlers those not yet born, who, in 20 years' time will be the young adults facing the challenges.