Prime Minister outlines CPF options for retirement
More support for elderly poor, more flexibility for withdrawals by retirees
Published on Aug 18, 2014 7:11 AM
Singapore's fast-rising number of elderly people can look forward to several changes aimed at ensuring they will have enough to live on during their retirement years.
Addressing the nation at his 11th National Day Rally last night, Prime Minister Lee Hsien Loong announced that a new scheme, called Silver Support, will be set up to give lower-income Singaporeans with little or no Central Provident Fund (CPF) savings an annual bonus from the Government. The details will be announced later.
Another change: CPF members who are retired, that is 65 and over, will be allowed to withdraw a lump sum from their Minimum Sum savings if they need. But there will be a limit, perhaps 20 per cent, to ensure they receive monthly payments throughout their later years.
Mr Lee also disclosed that the Housing Board's Lease Buyback Scheme, which allows owners of three-room flats and smaller units to sell a part of their 99-year lease to the Government in return for a regular income, will be extended to four-room flat owners as well.
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KEY CPF CHANGES
- More flexibility for Central Provident Fund (CPF) members, as they will be allowed to take out a part of their savings as a lump sum during retirement.
- Annual bonus payments for the elderly poor who have insufficient CPF savings, no HDB flat or family support.
- Advisory panel to be set up by Ministry of Manpower to study CPF changes.
- CPF Minimum Sum to go up from $155,000 to $161,000 for the cohort that turns 55 next July, but no need for more major increases.