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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be able to attain the current level set for the Minimum Sum in cash, by the time they retired even after they have withdrawn money for a home.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/