Fixing the broken CPF retirement scheme
The elderly are losing their dignity and struggling to live
fulfilling lives. The youth of today will soon follow.
Unless we fix things NOW
Touch your heart and ask yourself - Why?
Here's the cold, hard reality about the CPF scheme:
- 47% of CPF members who turn 55 years old cannot meet their full retirement sum
- Between 55 to 64 years old, CPF members
cannot touch the cash that is in their CPF account - 74% receive monthly payouts of
under S$500 a month once they turn 65 years old
As a 65-year-old retiree, is S$500 a month enough to live on?
Money no enough? Enough is enough!
Take a look at the chart.
S$500 a month is barely enough for even the most basic of goods and services.
And we've not even counted other basic necessities such as clothing, healthcare and medicine, communication devices and personal mobility-assistance devices.
Also, elderly people don’t like to go shopping ah?
Wondering why elderly Singaporeans cannot afford to retire?
Because of a broken retirement scheme, elderly Singaporeans must continue working in their twilight years.
They do not have the money or time to pursue their passion and hobbies, or spend time with their grandchildren passing on valuable life lessons.
So how much is enough for retirement?
This is what researchers from the Lee Kuan Yew School of Public Policy say.
Stripped of dignity
The CPF scheme started out as a pension scheme so that people had enough savings to live on when they retire.
Today, more than 7 in 10 CPF members do not receive enough in a month to cover even the cost of basic necessities.
Is the CPF scheme not broken then?
Elderly suicide rates have been at their highest recent years, since suicide tracking began in 1991.
One key reason, according to the Samaritans of Singapore, is the fear of burdening their family members.
It's time to
make THEM pay
It’s time to give our elderly Singaporeans back their dignity.
Instead of feeling that life is empty and meaningless, they should be enjoying their golden years.
They should be imparting value knowledge and life skills to young Singaporeans, and not struggling with low-paying menial jobs just to make ends meet.
Young people who think this is a problem for the old, don’t forget, you will grow old too one day.
Today’s retirement scenario will replay itself in the future if nothing is done to change it.
The SDA wants to make the change.
We want to help our elderly, and make sure the young today do not suffer the same fate, or worse!
Read about the SDA's stance on these issues
References
Joanna Seow. Straits Times. 2020. Employment growth for S’pore residents slowed slightly in 2019, unemployment edged up: MOM. https://www.straitstimes.com/singapore/manpower/employment-growth-for-residents-slowed-slightly-in-2019-unemployment-edged-up-mom
Ministry of Manpower. 2019. Report: Labour Market 2019. https://stats.mom.gov.sg/Pages/Labour-Market-Report-3Q-2019.aspx
Kok Xinghui. South China Morning Post. 2019. From the Indian community to Chinese to Filipinos, Singapore feels the strain of immigration. https://www.scmp.com/week-asia/politics/article/3039999/indian-community-chinese-filipinos-singapore-feels-strain
Jeraldine Yap. 2019. More than 6 in 10 feel immigrants not doing enough to integrate into Singapore: Survey. https://www.channelnewsasia.com/news/singapore/more-than-6-in-10-feel-immigrants-not-doing-enough-to-integrate-11778888
Joanna Seow. Straits Times. 2019. PMETs make up rising share of retrenched locals. https://www.straitstimes.com/business/pmets-make-up-rising-share-of-retrenched-locals
Toh Ee Ming. Today. 2017. Singapore must ‘steal other people’s lunches’ to stay ahead of competition. https://www.todayonline.com/singapore/singapore-must-steal-other-peoples-lunches-stay-ahead-competition
Population SG. 2016. Foreign workforce: Good or bad?. https://www.population.sg/articles/foreign-workforce-good-or-bad
Prime Minister’s Office. 2013. Population White Paper: A Sustainable Population for a Dynamic Singapore. https://www.strategygroup.gov.sg/media-centre/population-white-paper-a-sustainable-population-for-a-dynamic-singapore
Be part of the change. For good.
Fixing the broken CPF retirement Scheme
A Singapore where only the rich prosper - is this the Singapore we want?
Unless we fix things NOW
Touch your heart and ask yourself - Why?
Here’s the cold, hard reality about the CPF scheme:
47% of CPF members who turn 55 years old cannot meet their full retirement sum
Between 55 to 64 years old, CPF members cannot touch the cash that is in their CPF account
74% receive monthly payouts of under S$500 a month once they turn 65 years old
As a 65-year-old retiree, is S$500 a month enough to live on?
Money no enough? Enough is enough!
Take a look at the chart.
S$500 a month is barely enough for even the most basic of goods and services.
And we’ve not even counted other basic necessities such as clothing, healthcare and medicine, communication devices and personal mobility-assistance devices.
Also, elderly people don’t like to go shopping ah?
Wondering why our elderly can't afford to retire?
Because of a broken retirement scheme, elderly Singaporeans must continue working in their twilight years.
They do not have the money or time to pursue their passion and hobbies, or spend time with their grandchildren passing on valuable life lessons.
So how much is enough for retirement?
This is what researchers from the Lee Kuan Yew School of Public Policy say.
It's time to make them pay!
The SDA proposes a tweak of the CPF system so that senior citizens receive their CPF savings in full upon hitting the retirement age – currently at the age of 62.
We propose that a component be reserved for MediSave and MediShield Life, so that the elderly have resources in reserve to fund emergency healthcare costs.
In addition, with the government serving as a custodian of the people by offering financial assistance to the elderly who fall between the cracks – this is only right, seeing that Singapore’s wealth is built on the collective contributions of each generation.
In this way, our elderly Singaporeans will be able to retire with dignity, with the benefit of social safety nets in place.
References
Joanna Seow. Straits Times. 2020. Employment growth for S’pore residents slowed slightly in 2019, unemployment edged up: MOM. https://www.straitstimes.com/singapore/manpower/employment-growth-for-residents-slowed-slightly-in-2019-unemployment-edged-up-mom
Ministry of Manpower. 2019. Report: Labour Market 2019. https://stats.mom.gov.sg/Pages/Labour-Market-Report-3Q-2019.aspx
Kok Xinghui. South China Morning Post. 2019. From the Indian community to Chinese to Filipinos, Singapore feels the strain of immigration. https://www.scmp.com/week-asia/politics/article/3039999/indian-community-chinese-filipinos-singapore-feels-strain
Jeraldine Yap. 2019. More than 6 in 10 feel immigrants not doing enough to integrate into Singapore: Survey. https://www.channelnewsasia.com/news/singapore/more-than-6-in-10-feel-immigrants-not-doing-enough-to-integrate-11778888
Joanna Seow. Straits Times. 2019. PMETs make up rising share of retrenched locals. https://www.straitstimes.com/business/pmets-make-up-rising-share-of-retrenched-locals
Toh Ee Ming. Today. 2017. Singapore must ‘steal other people’s lunches’ to stay ahead of competition. https://www.todayonline.com/singapore/singapore-must-steal-other-peoples-lunches-stay-ahead-competition
Population SG. 2016. Foreign workforce: Good or bad?. https://www.population.sg/articles/foreign-workforce-good-or-bad
Prime Minister’s Office. 2013. Population White Paper: A Sustainable Population for a Dynamic Singapore. https://www.strategygroup.gov.sg/media-centre/population-white-paper-a-sustainable-population-for-a-dynamic-singapore
Our Stance
Be part of the change. For good.
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