Most Singaporeans still cannot meet CPF Min Sum at age 55

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Most Singaporeans still cannot meet CPF Min Sum at age 55

Postby raysusan » Tue Mar 06, 2012 8:37 am

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Speaking in Parliament today (5 Mar), Deputy Prime Minister and Manpower Minister, Tharman Shanmugaratnam revealed that 55% of Singaporeans still cannot meet their CPF Minimum Sum at age 55 last year.

The purpose of the Minimum Sum is, of course, to ensure that Singaporeans set aside sufficient savings so to meet a basic level of needs in retirement, according to Mr Tharman. It was revised to $131,000 last Jul, up from the previous figure of $123,000. This new Minimum Sum will apply to CPF members who turn 55 from 1 July 2011 to 30 June 2012.

However, Mr Tharman did say that the percentage of CPF members who meet their Minimum Sum at age 55 has been improving over the years, from 36% in 2007 to 45% in 2011. He said that this will improve with each successive cohort, as educational profiles improve and lifetime incomes rise.

He said among those starting work now, it is estimated that about 70 to 80% should be able to attain the current level set for the Minimum Sum in cash, by the time they retired even after they have withdrawn money for a home.

The Minimum Sum (MS) is set at a level necessary to meet the typical expenditure needs of retiree households in the lower-middle income group. He, however, explained that the minimum sum is not adequate to support the expected needs of those in higher income households as it was not designed for that purpose. Those in higher-income households would have private savings outside of the CPF to tap on.

Going forward, Mr Tharman said one of the ministry’s tasks is to ensure that most low-wage workers are in the CPF system. He said that his ministry will be stepping up its enforcement and promotion efforts to ensure compliance with the CPF Act for low-income workers.


will you be one of them too by then?
let talk about our CPF here

http://www.tremeritus.com/2012/03/05/ma ... last-year/
Last edited by raysusan on Tue Mar 06, 2012 10:06 am, edited 1 time in total.

raysusan
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Re: Most Singaporeans still cannot meet CPF Min Sum at age 5

Postby hquek » Tue Mar 06, 2012 8:58 am

Still working my way towards meeting that min sum. Am lucky becos I bought, eh sorry, leased my hdb before the meteoric rise.

then again, mine is old flat. hope that I die before the end of the lease 50something years later, else have to find a bridge to sleep under.

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Re: Most Singaporeans still cannot meet CPF Min Sum at age 5

Postby raysusan » Tue Mar 06, 2012 10:05 am

Tharman: CPF Life means you get ‘paid’ for life

With more Singaporeans living beyond 85 years of age, there is a need to ensure they have enough money in their CPF accounts for retirement so that they do not become a burden to the state.

Deputy Prime Minister Tharman Shanmugaratnam announced in Parliament yesterday further ‘refinements’ to the CPF Life plans to better cater to the needs of the people.

CPF Life now offer only two plans for Singaporeans instead of four and the drawout age has been increased from 62 to 65.

With Singaporeans drawing down under CPF Life from January 1, 2013, the government announced further refinements to the Life plans to better cater to the needs of the people. The Minimum Sum that a CPF member must set aside at age 55 is now $131,000.

“More and more retirees will outlive their CPF savings if they were on the Minimum Sum Scheme. CPF LIFE is therefore an important and timely evolution of the Minimum Sum Scheme,” Mr Tharman said.

He also reassured MPs that the government is not ‘holding’ Singaporeans’ money for life:

“Some think the government introduced CPF LIFE to hold on to their money for life. Actually, all it means is you get paid for life through CPF LIFE instead of for about 20 years under the minimum sum scheme. CPF LIFE does not change how much you can withdraw from CPF in cash and it does not change how your savings in other CPF accounts can be used.”

Singaporeans have one of the highest saving rates in the world, but an increasing number are struggling to survive in their golden years as the bulk of their CPF savings are tied up with their housing loans for HDB flats.


http://temasektimes.wordpress.com/2012/ ... -for-life/

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Re: Most Singaporeans still cannot meet CPF Min Sum at age 5

Postby winchester » Tue Mar 06, 2012 10:33 am

thats because most of us lock our cpf money in property as we prefer it there rather than as minimums sum.

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Re: Most Singaporeans still cannot meet CPF Min Sum at age 5

Postby Oppsgal » Tue Mar 06, 2012 10:48 am

Tell me how much minimum sum also useless...

No money so what's the point to tell me and keep revising upwards. How to meet the "target"?

:shrug:

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Re: Most Singaporeans still cannot meet CPF Min Sum at age 5

Postby Ivy Ang Siow Kia » Tue Mar 06, 2012 11:45 am

Can meet if I sell my flat and live by the seaside in camps tents :roll:

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Re: Most Singaporeans still cannot meet CPF Min Sum at age 5

Postby Nebbermind » Tue Mar 06, 2012 3:24 pm

Ivy Ang Siow Kia wrote:Can meet if I sell my flat and live by the seaside in camps tents :roll:

and stuff your $$ into pillow case and use as pillow??!! :laugh:

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