Home News Featured News CPF: Moving forward

CPF: Moving forward




- Advertisement -

Excerpt from a commentary by NMP Laurence Lien in the Straits Times on the CPF controversy where he argued for more transparency and an improvement in the perceived lack of public accountability. Transparency breeds trust, he wrote:

“Apart from more transparency, I believe the Government should commit to being revenue neutral over the long term on the investments of CPF funds. Based on GIC’s current asset allocation, the Government should be able to accumulate excess returns on invested CPF funds over the long term and pay out bonus returns periodically.

“The Government can also provide an option for CPF members to take on some risks willingly to invest in a fund that has a higher expected return than the Special Account, but whose price will be subject to market risk.

“Some Singaporeans argue for the return of CPF funds to members at age 55. A number of well-regarded pension funds around the world, for example, the Chilean pension fund, require members to use the balance in their individual accounts to purchase an annuity and/or set up programme withdrawals over a retiree’s expected life span. Annuities help to prevent either overspending or underspending.

- Advertisement -

“The majority of CPF members should not be so focused on the minimum sum or on wresting control of it. They should instead look at total retirement planning in order to answer questions such as: How much money do they require for retirement? What is the potential shortfall? How much must come from personal savings? How much longer do they need to work?

“Higher-income CPF members must realise sooner, rather than later, that the CPF was not focused on them and that CPF savings alone are likely to be inadequate.

“The Government needs to work with those who are self-employed, or who have been outside the workforce for many years, to systematically shore up their retirement adequacy.

“Income security in old age presents dilemmas and hard choices for policymakers everywhere, not just in Singapore. The sooner everybody – government and people – starts working together, with openness and cool heads, to address it today, the better off everyone will be in the future.”Follow us on Social Media

Send in your scoops to news@theindependent.sg 

- Advertisement -

KF Seetoh on errant cyclists: “You need rules la, that’s common sense”

Singapore -- Recent reports of reckless cyclists on the road have prompted  street food guru KF Seetoh to come up with his own recipe for road safety. "Implement road safety for cyclist too, just like how (bike) riders (and) drivers are strictly...

Unpopular opinion: Libel damages should be increased for those who crowdfund, says Calvin Cheng

Singapore -- Courts should take into consideration that libel damages can be crowdfunded and the amounts should be increased accordingly, says Mr Calvin Cheng. In a Facebook post on Saturday (Apr 17), the former Nominated Member of Parliament (NMP) contended that courts...

Migrant worker helps visually impaired senior cross the street at AMK

Singapore—In today’s jaded world, it’s easy to find news that angers or upsets us, and therefore good news of people’s kind acts never fails to bring joy. One such recent act of kindness was shown by a migrant worker who took the...
Follow us on Social Media

Send in your scoops to news@theindependent.sg