Young S'poreans 'will have adequate CPF savings' Independent study, however, highlights need to keep an eye on the needs of older generation
04:45 AM Sep 20, 2012
Compared to the previous generation, young Singaporeans today have to work longer as life expectancy increases. Coupled with the rising cost of living, there are concerns that "work till you drop" could become the motto for the working class here.
But the findings of an independent study commissioned by the Ministry of Manpower could go some way to allay those worries.
However, at the same time, the study highlighted the need for policymakers to "keep our eyes on" the needs of the older generation today - in the words of Deputy Prime Minister Tharman Shanmugaratnam - given that their wages were much lower in the past and they were required to set aside less money in their CPF Retirement Account.
The study, which was conducted by National University of Singapore economics professors Chia Ngee Choon and Albert Tsui, found that young Singaporeans in the workforce today will have adequate savings in their Central Provident Fund (CPF) accounts by the time they retire.
Mainstream media is spinning again.
2009 49% were able to meet minimum sum
2011 45% were able to meet minimum sum
The number of people who CANNOT meet minimum sum INCREASED.
Another issue for the government involves the CPF minimum sum requirement, where S$123,000 must be set aside for retirement.In 2009, only 49 per cent of workers were able to meet the requirement upon reaching 55 years old.
This raises concerns over the ability of the elderly to depend on themselves in retirement, and the potential need for more support from the government.
Prof Yeung said: "Older people rely a lot on their children to support them. And now a large proportion of people don't even get married or have children. So that means they are going to need to accumulate enough on their own, or the government will have to increase their support to the elderly population."
The report looked at six broad areas, including sustainable economic growth and building a cohesive society.
There are plans to publish the report every two years.
Title : Percentage of CPF members meeting Minimum Sum on the rise: Tharman
Date : 05 March 2012 1703 hrs (SST)
SINGAPORE: The percentage of active CPF members who meet their Minimum Sum at age 55 has been improving over the years, from 36 per cent in 2007 to 45 per cent in 2011.
Speaking in Parliament, Deputy Prime Minister and Manpower Minister, Tharman Shanmugaratnam said this will improve with each successive cohort, as educational profiles improve and lifetime incomes rise.