‘Optimistic’ about younger workers’ CPF savings, concerned about senior retirees’: Tan Chuan-Jin

 

By Nurul Azliah Aripin | Yahoo Newsroom – 3 hours ago

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ricky l • a second agoRemove

I think safeguarding the CPF and ensuring a Minimum Sum with each CPF members - is the most prudent measure the Government has undertaken to protect the Retirement Savings for Singaporeans.

This is because there will be Singaporeans who will not be able to manage their funds if allowing them to withdraw everything at one go - and will lose all their life savings in no time.

In return, this will pose a problem not only to themselves but also to the Government - if they ever lose their entire CPF savings for retirement.

There are living examples of people losing all their savings in no time - and luckily CPF is the only liquidity left for their retirement.

Thus the principle of safeguarding the CPF and maintaining a Minimum Sum for monthly withdrawal for their retirement - is a Life Saviour in the twilight age - and hopefully it is enough - if not, jobs to keep people working until 70 years old is the Life Saviour complemented by the CPF Minimum Sum.

This principle must never be bend through popular pressure. Otherwise, if people lost their last bit of savings in CPF to retire in old age - it will be too late.

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Jey  •  7 minutes ago Report Abuse

Aiya ... these people will not listen lah. They think the world must revolve around them.

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ricky l • a second agoRemove

Seriously unless people come across those who have lost their life savings and they live in a panic mode - will know what i mean.

In addition, CPF Minimum Sum is only meant for twilight years - assume most people live up to 85 years old. And if the monthly expenses to live comfortably is $3,000, with a Minimum Sum of $155,000 - it can only last a person for 4.3 years.

Thus, unless a person is able to work up to 70 years old and save enough for 10.7 years which require another $385,200.

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ricky l • a second agoRemove

In other words, for people to retire at 70 years old and live up to 85 years old, to live comfortably with monthly expenses of $3,000 - people need $540,200.