Expert suggests raising CPF rates to 4 to 5 percent to ensure adequate retirement incomes
Posted by temasektimes on July 11, 2012
Despite slogging hard day in and out like a dog for their entire life, most Singaporeans will not have sufficient savings for their retirement, according to a report on retirement attitudes and trends published by US-based Center for Strategic and International Studies and Prudential
Workers here are not saving “nearly enough to maintain an adequate standard of living in retirement” although Singapore had the highest rate of receipt from a national pension system at 78 per cent, it had the lowest replacement rate of about 25 per cent.
Speaking to queries from the media, one of its author Dr Richard Jackson said:
“Singapore raise the return on worker contributions to the Central Provident Fund, which “historically has been well beneath the market rate”, to about 4 to 5 per cent to ensure adequate retirement incomes.”
Dr Jackson added that Singaporeans should not count too much on family support in the future because of plummeting birth rates and shrinking family size.
About 8,000 people aged between 20 and 60 and above were involved in the study, including 931 from Singapore.
Unlike other First World countries, Singapore does not have a comprehensive social safety net to care for its elderly who are expected to work for as long as possible till they drop dead and die so that they do not become a financial burden to the state.