1. Different retirement sums for different needs
a. Basic retirement sum for property owners: $80,500, half the minimum sum of $161,000. Allows basic payout of $650 to $700 every month after retiring at 65.
b. Full retirement sum for those who do not own home or do not want to pledge their property: $161,100. Savings above $161,000 can be withdrawn when CPF members are 55.
c. Enhanced retirement sum for those who want to top up CPF savings and get higher payouts: $241,500, three times the Basic Retirement Sum.
2. New option to withdraw up to 20 per cent of savings at 65
Currently, members who do not meet their minimum sum can withdraw only $5,000 after turning 55. The proposed withdrawal of 20 per cent of savings will include this $5,000 sum.
3. Higher monthly payouts for CPF members, if they opt to receive them later
These members should get 6 to 7 per cent more in monthly payouts for every year they are deferred, up to the age of 70.
4. Increase basic retirement sums and basic payouts for future cohorts
Basic retirement sum for Singaporeans turning 55 from 2017 to 2020 to be increased by 3 per cent for each cohort. This is to account for inflation and increased cost of living.
5. Higher CPF contribution rates for older workers
The panel strongly supports the Government's commitment to raise the CPF contribution rates for older workers.
6. Raise CPF contribution salary ceiling
The panel says it would be timely for the Government to consider raising the CPF contribution salary ceiling, to keep pace with wage growth and allow CPF members to accumulate higher levels of savings for retirement.
Using those who turn 55 in 2016 as example:
|Sum required at 55||Monthly payouts at 65|
|Own property||Basic Retirement Sum: $80,500||$650-$700|
|Own property but choose not to pledge||Full Retirement Sum: $161,000||$1,200-$1,300|
|No property||Full Retirement Sum: $161,000||$1,200-$1,300|
|Want higher monthly payouts||Enhanced Retirement Sum: $241,500||$1,750-$1,900|
Source: CPF Advisory Panel