Good Hands is redesigning CPF to allow Poor Peasant to Huat even Bigger in near future….dun miss the boat and opt in?

[k1976]

Singapore still mulling design of possible CPF retirement investment scheme: PM Wong​

He also addresses other issues in a wide-ranging interview on retirement adequacy

Elysia Tan​

Published Fri, Feb 7, 2025 · 12:13 PM
CPF

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• The government is working with insurance companies and hospitals to manage the gradient of healthcare cost increases. PHOTO: CHERYL ONG, BT
• The government is working with insurance companies and hospitals to manage the gradient of healthcare cost increases. PHOTO: CHERYL ONG, BT
• The government is working with insurance companies and hospitals to manage the gradient of healthcare cost increases. PHOTO: CHERYL ONG, BT
• The government is working with insurance companies and hospitals to manage the gradient of healthcare cost increases. PHOTO: CHERYL ONG, BT
• The government is working with insurance companies and hospitals to manage the gradient of healthcare cost increases. PHOTO: CHERYL ONG, BT

SINGAPORE is still studying the idea of a Central Provident Fund (CPF) retirement investment scheme, to see if such a scheme can be designed to provide certainty of greater returns while minimising risk, said Prime Minister Lawrence Wong.

Any such scheme, which would be opt-in, must allow Singaporeans to not just choose stocks, but also invest in a “properly managed” fund, he said in an interview with Chinese daily Lianhe Zaobao. A transcript was released to the media on Friday (Feb 7).

Said PM Wong: “The challenge is, can such a fund produce returns that are better than the very generous, risk-free, guaranteed returns that the government already provides?

 

[k1976]

And will it still have some volatility, which will expose CPF members to financial market risk, especially when they retire?”

The government considered such a scheme “some years back” and is still studying whether there are design features that could allow for such a low-risk, high-return product, said PM Wong, who is also minister for finance.

In the wide-ranging interview on retirement adequacy, he also addressed issues such as support for vulnerable groups; how to balance the use of CPF to finance housing and retirement savings; and Singaporeans’ wish for more control over CPF monies.

 

[k1976]

Living longer​

One major challenge is that people are living longer, raising concerns about insufficient retirement funds.

Singapore tackles this on two fronts, said PM Wong. First, Singaporeans must be prepared to work for longer. Second, retirement savings must be made to last throughout one’s lifetime, no matter how long this is – which is why the CPF Life annuity was implemented, he added.

Greater longevity was raised in separate interviews that Zaobao had with Manpower Minister Tan See Leng and CPF Advisory Panel chairman Tan Chorh Chuan.

 

[k1976]

As Singaporeans live “much longer lives compared to any other period before”, mindsets must shift with the times, said Dr Tan See Leng.

“If you look at the broad overview of what we are doing in the Forward Singapore construct, our assurance to every one of our Singaporeans is that as long as you work and contribute consistently to CPF, we will do our best to ensure that your finances in retirement will be adequate,” he said.

CPF contribution rates have been tweaked over the years in response to economic conditions, the minister noted. But what remains consistent is the objective of continuing to raise contribution rates for senior workers, while being “very conscious and mindful of the sustainability of the business”.

The issue of raising contribution rates is “a constant dialogue” with tripartite partners, the minister added.

Also constantly under review are the healthcare-related aspects of CPF, with healthcare costs expected to rise as society ages.

Said Dr Tan: “I think that is why the MediSave claim limits, MediShield Life premiums and so on will continue to be updated (and) will continue to be reviewed.”

With advances in medicine, it is impossible to say for sure that costs will rise, he noted. But the government is working with players such as insurance companies and hospitals to manage “the gradient of the rise”.

 

[Chase]

shifting the goal post, again

 

[k1976]

Underestimating life expectancy​

Another issue, flagged by the CPF Advisory Panel chairman Tan Chorh Chuan, is that people tend to underestimate their life expectancy.

This is the case not just internationally, but also in focus group discussions held by the CPF Advisory Panel, he said. Many participants did not plan much financially for retirement – and if they did, most “significantly underestimated” their life expectancy.

“If you don’t provide for the length of time you’re going to be in retirement, which is getting longer because all of us are living longer, then you will not have enough savings,” he cautioned. “So this whole idea of understanding of our longer lifespan – it’s very critical for retirement planning.”

The question of how much needs to be set aside is addressed by the concepts of the Basic Retirement Sum (BRS), Full Retirement Sum and Enhanced Retirement Sum.

Asked if these would be reviewed in view of high inflation in recent years, Prof Tan noted that one recommendation by the CPF Advisory Panel, in 2015, was for the BRS to rise by 3 per cent every year for five years.

But he added: “I expect that there would have to be periodic reviews to adjust what the rate of increase of BRS would be.”

 

[k1976]

shifting the goal post, again

Maybe …. Is now time for Sinki to own a piece of Tamasicck Fund - world best fund?

 

[Hypocrite-The]

Living longer​

One major challenge is that people are living longer, raising concerns about insufficient retirement funds.

Singapore tackles this on two fronts, said PM Wong. First, Singaporeans must be prepared to work for longer. Second, retirement savings must be made to last throughout one’s lifetime, no matter how long this is – which is why the CPF Life annuity was implemented, he added.

Greater longevity was raised in separate interviews that Zaobao had with Manpower Minister Tan See Leng and CPF Advisory Panel chairman Tan Chorh Chuan.

Living longer is a big issue to gahmena sue to the high cost n the globalist elites not paying their fair share of taxes..as such..why can't the gahmen just implement Free Soylent Green. Solve the problem easily.

 

[k1976]

Living longer is a big issue to gahmena sue to the high cost n the globalist elites not paying their fair share of taxes..as such..why can't the gahmen just implement Free Soylent Green. Solve the problem easily.

Head thy win, Tail we lost

Kym Boss Hypocrite?

 

[Hypocrite-The]

Head thy win, Tail we lost

Kym Boss Hypocrite?

Just make it voluntary...heaps of old n sick n infirmed will queue up for it...



Soylent Green..
It's For People

 

[k1976]

Just make it voluntary...heaps of old n sick n infirmed will queue up for it...



Soylent Green..
It's For People

No need lah
Good hands will take care of us

 

[Loofydralb]

Let's remind ourselves on how medishield had scammed all of us with their paltry payouts, way below international industry standards, while they pocket the rest as profits.

Sinkies never learn.

 

[NanoSpeed]

In the wide-ranging interview on retirement, he also addressed issues such as support for vulnerable groups;

Referring to me.

 

[spinn]

lol d biggest scam after gst

as dey say d test of d pudding is in d eating

make cpf wholly valuntary see how many opt in

 

[winnipegjets]

Norwegian sovereign fund is worth more than US$1 trillion. Why not just learn from them? They have 5 million in population too, except not many Indians there.