SINGAPORE: Dr Tan See Leng, Singapore’s Minister of Manpower, revealed that in 2022, approximately half of all active CPF members at age 55, totalling 19,700 individuals, successfully met the Full Retirement Sum (FRS) requirement by saving in cash.
In contrast, roughly three out of every ten members were unable to do so.
In comparison, seven in 10 active CPF members who turned age 55 last year set aside the CPF Basic Retirement Sum (BRS) or more.
The BRS for CPF members turning age 55 in 2022 is S$96,000, while the FRS is S$192,000, according to the factsheet provided by the Ministry of Manpower (MOM).
In response to a Parliamentary Question posed by Workers’ Party MP Louis Chua Kheng Wee on Wednesday (4 Oct), Dr Tan shared data concerning the number of Singaporeans capable of satisfying the CPF Full Retirement Sum (FRS) criteria.
Mr Chua asked the Minister that in each year over the last five years, what is the number of Singaporeans who are able to set aside their CPF Full Retirement Sum (FRS) fully in cash and in a mixture of property and cash respectively; and what is the number of Singaporeans who are unable to set aside their FRS.
In response, Dr Tan confirmed that the percentage of active CPF members reaching the age of 55 who managed to set aside their FRS in cash increased from around 40% in 2018 to approximately 50% in 2022.
The specific numbers for these members were as follows:
|Active CPF members reaching the age of 55 who managed to set aside their FRS in cash
Additionally, between 2018 and 2022, roughly 20% of active CPF members reaching age 55 each year opted to allocate their FRS in a combination of property and cash instead of entirely in cash.
|Active CPF members turning age 55 have set aside their FRS in a mixture of property and cash
Significantly, in 2022, about 30% of active CPF members who turned 55 were unable to meet the FRS criteria either in cash or through a combination of cash and property, amounting to approximately 13,400 members.
Only 65% of active CPF members aged 55 achieved the BRS and owned property
Notably, the report “Minimum Income Standard 2023: Household Budgets in a Time of Rising Costs,” conducted by NTU and LKYSPP, highlighted that only 65% of active CPF members who turned 55 in 2021 have either saved enough for the CPF Basic Retirement Sum (BRS) and owned a property, or had saved the Full Retirement Sum.
The report noted that Within the Central Provident Fund (CPF), modest hikes to the BRS and FRS didn’t have a significant impact on the adequacy of retirement income.
Zhulkarnain Abdul Rahim, MP for Chua Chu Kang GRC also filed a separate PQ to ask the Manpower Minister what steps will the Ministry take, together with employers, to increase the awareness of adequate retirement planning amongst employees, especially older workers.
In response, Dr Tan stressed that ensuring basic retirement adequacy begins with maintaining a competitive economy that generates quality employment opportunities.
“We uplift lower-wage workers through Workfare and Progressive Wage moves. Singaporeans can be assured that they will be able to meet their basic retirement needs as long as they work and contribute consistently to CPF.”
Dr Tan also disclosed that approximately seven out of every ten active CPF members who turned 55 in 2022 successfully set aside the CPF Basic Retirement Sum or more.
He expressed optimism that this figure would improve to around eight out of ten for CPF members reaching the age of 55 in 2027.
Dr Tan says the government support Singaporean senior to work longer to further strengthen their retirement adequacy
In response to the increasing life expectancy of Singapore’s seniors who desire to remain engaged in the workforce, Dr Tan said the PAP government are committed to providing support.
“We will support them by increasing the statutory retirement and re-employment ages to 65 and 70 respectively by 2030, up from 63 and 68 today.”
“This will enable our seniors to work longer if they wish to and further strengthen their retirement adequacy.”
Retirement planning is ultimately a personal responsibility. To help Singaporeans in this journey, Dr Tan highlighted that the CPF Board, MoneySense as well as MoneySense’s ground outreach arm, the Institute of Financial Literacy (IFL), conduct outreach and provide resources on retirement planning.
“For example, CPF members reaching the age of 55 will be invited to a one-to-one CPF Retirement Planning Service, which offers personalised guidance, so that they can make informed decisions on how best to prepare for retirement with their CPF savings.”
CPF Board also regularly engages and educates members on retirement planning through its social media platforms, electronic direct mailers, and face-to-face community events/talks.
“There is also an annual CPF Board Retirement Planning Campaign to inspire Singaporeans to start planning for their retirement.”
The IFL extends its support through free one-on-one financial health clinics and retirement planning workshops, covering various topics such as money management, CPF savings management, and estate planning.
“To reach employees, IFL has been partnering employers to deliver workplace financial literacy programmes.”
Hamas extends condolences for tragic self-immolation of US Airman Aaron Bushnell
Dennis Tan: Advocating senior support, disabilities, and green transition in Budget 2024
South Africa faces escalating rhino poaching despite conservation efforts
Halimah Yacob speaks out on Gaza crisis: ‘Degradation of the human soul’
Love Aid Singapore donates US$20,000 to support Gaza orphans
WP MPs challenge Murali Pillai on government transparency regarding reserves
ICA to maintain dedicated lanes for Singaporeans and permanent residents
South Korea gives protesting doctors 29 Feb return deadline
Maid probed over alleged fatal abuse of employer’s dog; SPCA deems actions “brutal” and “appalling”
Sylvia Lim advocates for recognition of older workers amidst ageism concerns
Redditors urge MOE for balanced, bias-free teaching on Gaza conflict in CCE lesson
Shanmugam: Singaporeans involved in foreign politics must declare under FICA
Politics5 days ago
Leong Mun Wai steps down as PSP Secretary-General over POFMA directive received
Singapore4 days ago
Gilbert Goh challenges MOE on Israel-Hamas classroom narrative
Featured2 weeks ago
PA surveys community & govt confidence amid pending general election
Comments2 weeks ago
PAP Marcus Loh accuses WP’s MP of alleged dishonesty on debate about reserves
Civil Society2 weeks ago
Singaporeans stand firm in support for Palestine amidst police scrutiny
Singapore1 week ago
Kenneth Jeyaretnam issued 6th POFMA direction over Ridout Road saga
Civil Society2 weeks ago
At least 9 individuals summoned by police over Palestine solidarity activities on 2 Feb
Politics1 week ago
Lim Tean mocks DPM Wong’s 2024 Budget as “band-aid”, hints election coming