Only one in five Singapore investors think CPF is enough for retirement
Published on Aug 13, 2014 11:45 AM
SINGAPORE - Merely one in five Singapore investors are confident that the Central Provident Fund (CPF) system will meet their retirement needs, according to the findings of a new Manulife survey released on Wednesday.
Nearly half the investors polled feel their CPF savings will not be sufficient to cover their retirement expenses, and over four in 10 believe the returns are too small.
Only a quarter of investors say they make additional voluntary contributions to their CPF accounts.
The survey also found that many do not top up their CPF accounts because they say they do not have enough money to make additional payments.
Those who do top up contribute an average of 17 per cent of their monthly personal income, in addition to their mandatory contribution.
Almost two-thirds of CPF members said there should be greater flexibility in withdrawing funds in order to improve the CPF system.
Six in 10 also want more education on retirement planning, while more than half want government or employer contributions to be raised.
Mr Naveed Irshad, Manulife Singapore chief executive, said: "CPF is an important element of every Singaporean's retirement plan, but it's not the only one. People should consider developing a diversified portfolio that includes other financial solutions to help meet their retirement needs.
"While changes to the CPF are expected, investors have many options available to improve the way they balance their portfolios, including many access points to improve their knowledge."