Here's the cold, hard reality about the CPF scheme:
As a 65-year-old retiree, is S$500 a month enough to live on?
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
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?
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?
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.
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.
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
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