THE TEMASEK TIMES

News and views from an unique perspective

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.

 

16 Responses to “Expert suggests raising CPF rates to 4 to 5 percent to ensure adequate retirement incomes”

  1. Jardel said

    LOL experts leh……….

  2. Jardel said

    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.

    LOL well said TT. Drop dead and die…..If can’t die how?😀 WHAT DO YOU THINK!!!!

    • Seraphim said

      As the saying goes…. ‘You can afford to die, but you cannot afford to get sick.’ (Applicable to a few countries) Medical expenses are ridiculous if you are not prepared for it…

  3. Instead of making our CPF contribution to be higher than 20%, why not get the employers to increase their payment for the service of their workers??

    Singaporeans are suffering with the deduction of 20% as CPF contribution, and all of us knows that there is no way we can touch the amount of compounding 20% contribution over 10+ years.
    Now if 20% becomes any higher, soon you will see no more Singaporean. You will see FT everywhere, walking shopping, eating, enjoying life. While the rest of Singaporean is either working hard to get a few more dollars or stay home and rot their life away as they do not have the money to perk the economic up.

    No money on hand, go out for what? Might as well stay home and rot. Nothing to do, more sex, more baby?
    With all the taxes and higher CPF contribution rate, no one can really raise a child well at all.

  4. Jack said

    we need to raise to at least 7% to off set the GST. Temasek Holding is able to use our CPF monery to generate a return of 17% year after year. Thus, we must ask for 7%, Temasek will still retain 10% of earning.

    This is a real inclusive society! if you agree, Kee Chui now

  5. wmulew said

    “First World” Country use High taxes to fund social safety net on top of which those pple still need to fork out cash to buy house. In SG, we have almost no income tax, low GST(compared to “first world countries”) and can use CPF to fund housing. Why do you think we have so little social safety net? Someone has to pay for it, you either pay first or pay later. In Europe, they pay up first. In SG, the government leave U with most of your own money for U to manage. Not happy they can increase the tax and manage it for you. Which do U prefer

  6. Julie Ong said

    The Central Provident Fund (CPF) has been used by the government as a source of cheap funds for them to indulge in speculative investments. The government must come clean on this as they have ‘shifted the goal post’ as regards CPF savings. It is no longer just savings for retirement at a measly fixed interest rate on the compulsory savings but we have to set aside some money for the ‘exotics’ that the government deemed necessary. Also the agreed age of 55 years old for full withdrawal has been changed. Whatever spin/explanation the PAP gives regarding amendments to the CPF is nothing but further exploitation of same for their own plans and purposes for use of these cheap and easy funds.
    To be fair the CPF money should be returned to the member in full at 55 years of age. I hope that the government will not come up with any further nonsense to justify change/s to the CPF as ultimately we will again be short changed.

    In the name of fairness I’d like the government to rebut my statements and also come forward with a better deal for CPF members.

  7. RU YI Gee said

    I think the best solution for now is to raise wages more then the current pay by 10% for all private & CPF raise for another 7% is all a good move.
    Pay back suffering time to all local citizen only.

  8. Fox said

    Well, laymen suggest GIC stop investing….
    Especially when they totally have no clue and keep losing.

  9. native s'porean said

    CPF rate should peg against inflation rate so that PAP govt will make good effort to control inflation rate so that their CPF rate can be kept to as low as they hope for.

  10. pooi said

    what kind of a stupid statement is that. a study to also ask you to buy more insurance, from an insurance company. what a load of BS.

  11. I beg to differ, this is all calling a bluff. what is enough and what is not enough. Earn 1.8 million a year and earning 18,000 a year who is enough and who is not enough. All I want to say is just to live within your means.

  12. Shan Shan said

    I DONT THINK IS EXPERT!!!WE CAN SAVE IN BANK…WANT TO HOLD OUR $$$ LONG LONG!!!DONT THINK WE STUPID!!!

  13. lolkey said

    If saving 20% + 20% matching for your entire working life is not enough to live the last 20 years of your lives, then I say just take the pill when the time comes.

    Yes, this is a self serving report, or quoted out of context (where’s the source?)

  14. ... said

    CPF is a joke!

    • Jack said

      CPF is actually a loan that we extend to a bad lender, and this lender continuously delaying paying you back your money by giving lots of excuses.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: