http://www.straitstimes.com/Breaking+News/Singapore/Story/STIStory_391449.html
Fewer take out CPF savings
Reasons are the higher interest earned and poor investment climate
By Goh Chin Lian
Each year, about 50,000 people turn 55 and can withdraw their CPF savings. -- ST PHOTO: MALCOLM MCLEOD
MORE people are leaving their Central Provident Fund (CPF) savings untouched instead of making a withdrawal on turning 55.
Last year, there were 28,481 of them, comprising 56 per cent of the 50,435 eligible to take out their money.
The group who left their savings alone made up 46 per cent of 55-year-olds in 2007 and 50 per cent in 2006, according to the CPF Board.
The trend is likely to continue this year. In the first five months, 56 per cent of those who could have withdrawn their savings did not do so.
Each year, about 50,000 people turn 55 and can withdraw their CPF savings.
Those who prefer to leave their money with the CPF Board cite the higher interest they can earn, and the poor investment climate.
Since Jan 1 last year, CPF savings have earned an extra 1 per cent interest on the first $60,000 saved in all accounts - with up to $20,000 of this sum coming from the Ordinary Account.
All in, CPF savings can earn interest of up to 5 per cent a year, and are guaranteed by law to earn a minimum interest of 2.5 per cent.
This is more than the 0.125 per cent interest banks pay on savings, noted CPF deputy chief executive officer (services group) Soh Chin Heng.
Mr Goh Soon Lee, who turned 55 on April 19, agrees. He is among those who believe it is wiser to let their nest egg grow in the CPF. Said the senior operations assistant: 'Unless you are a good investor, it's better not to use your hard-earned money to go and play around.'
Read the full story in Wednesday's edition of The Straits Times.
Fewer take out CPF savings
Reasons are the higher interest earned and poor investment climate
By Goh Chin Lian
Each year, about 50,000 people turn 55 and can withdraw their CPF savings. -- ST PHOTO: MALCOLM MCLEOD
MORE people are leaving their Central Provident Fund (CPF) savings untouched instead of making a withdrawal on turning 55.
Last year, there were 28,481 of them, comprising 56 per cent of the 50,435 eligible to take out their money.
The group who left their savings alone made up 46 per cent of 55-year-olds in 2007 and 50 per cent in 2006, according to the CPF Board.
The trend is likely to continue this year. In the first five months, 56 per cent of those who could have withdrawn their savings did not do so.
Each year, about 50,000 people turn 55 and can withdraw their CPF savings.
Those who prefer to leave their money with the CPF Board cite the higher interest they can earn, and the poor investment climate.
Since Jan 1 last year, CPF savings have earned an extra 1 per cent interest on the first $60,000 saved in all accounts - with up to $20,000 of this sum coming from the Ordinary Account.
All in, CPF savings can earn interest of up to 5 per cent a year, and are guaranteed by law to earn a minimum interest of 2.5 per cent.
This is more than the 0.125 per cent interest banks pay on savings, noted CPF deputy chief executive officer (services group) Soh Chin Heng.
Mr Goh Soon Lee, who turned 55 on April 19, agrees. He is among those who believe it is wiser to let their nest egg grow in the CPF. Said the senior operations assistant: 'Unless you are a good investor, it's better not to use your hard-earned money to go and play around.'
Read the full story in Wednesday's edition of The Straits Times.
