AN ANALYSIS OF THE SINGAPORE POPULATION IN THE AGE-GROUP 35-49

Abstract

The importance of studying the baby boom cohorts may be undermined because Singapore is currently experiencing a low age dependency ratio. However, the baby boomers will be entering retirement ages in large numbers and with the subsequent decline in fertility below replacement levels, there is a need to look at the socio-economic implications on the economy in the future. Each generation cohort experiences similar conditions and situations such that they possess certain characteristics that indicate their behaviour in the future. We first look at their potential effect on the economy, in terms of the level of economic participation, the level of productivity, consumption, investment and savings patterns. There is an indirect relationship between these macroeconomic variables and demographic changes but the characteristics of baby boomers do help to assess the direction of change in these variables. A more direct relationship is shown by its impact on our social security arrangements. There is an analysis of the adequacy of Singapore's provident fund system in terms of providing income maintenance, health care and housing. The Singapore Government plays a minimal role in providing social security, emphasizing the individual, the family and the community to provide social security. There is thus a need to assess the adequacy of the programmes provided for the baby boomers in the future. There is an attempt to evaluate the effectiveness of policies implemented presently or are under the consideration of the Government. Policy recommendations are made in response to the future socio-economic implications found in this study.