DPM Tharman: Young Singaporeans will have ‘enough’ CPF savings by ‘retirement’
Posted by temasektimes on September 19, 2012
Singaporeans need not fret over their golden years because they will have ‘adequate’ savings in their Central Provident Fund (CPF) accounts by the time they ‘retire’, if they are able to, declared Deputy Prime Minister Tharman Shanmugaratnam.
DPM Tharman reached his conclusion after reading an ‘independent’ study done by the Singapore Manpower Ministry which estimates a worker’s income replacement rate (IRR) using the accumulated CPF.
The study found that the median male earner who enters workforce today will be able to achieve an IRR of over 70 per cent through his CPF savings.
For the female median earner, the equivalent IRR is 63 per cent.
However, DPM Tharman conveniently omitted the fact that the bulk of Singaporeans’ CPF savings will be tied up in mortgage loans for their over-priced HDB flats.
Furthermore, their CPF savings are ‘untouchable’ – they will not be allowed to withdraw their entire CPF savings and need to keep a Minimum Sum of $140,000 or more in the ordinary account.
Though Singapore is now the richest country in the world by GDP per capita income and Singaporeans have the highest saving rates, most Singaporeans have to slog day in and out like dogs till they drop dead and die like the 80 year old dishwasher who was found dead in the toilet of a coffeeshop where she is working lately.