Idea to up CPF minimum sum withdrawal age gets backing

Idea to up CPF minimum sum withdrawal age gets backing

LABOUR chief Lim Swee Say on Thursday backed the idea of raising the age at which Singaporeans can draw down their Central Provident Fund (CPF) minimum sum.But he also made clear that any such change should be done cautiously to ensure workers are not left in a lurch - without a job as well as the monthly cash payout from their CPF retirement savings.

‘We should be prepared for the possibility of raising the withdrawal age of the CPF minimum sum,’ he told reporters at a community event.

But, he added, ‘we need to proceed cautiously’ and make sure a system is put in place for workers to be re-employed beyond the retirement age of 62.

Mr Lim’s response came a day after Mr Lim Boon Heng, the minister who oversees ageing issues, raised the possibility of increasing the CPF minimum sum draw down age from 62 to 65.

Currently, Singaporeans can withdraw a portion of their CPF at age 55.

But they must leave a minimum amount in the CPF from which they will receive a monthly payout from age 62.

The idea of raising the draw down age is linked to the Government’s aim to get Singaporeans to work longer so that they have enough retirement savings.

‘If we’re not able to do so…we’re going to see more and more Singaporeans either run out of money or run out of purpose in life, which is undesirable,’ said Mr Lim Swee Say, who is also Minister in the Prime Minister’s Office.

With a rapidly ageing population, Singapore’s target is to have an employment rate of 65 per cent for people in the 55 to 64 age group. It was 53.7 per cent last year.

To achieve the goal, Mr Lim called for a ‘re-tuning’ of mindsets and attitudes.

‘We must not think about retiring,’ he said.

At the same time, Singapore ‘must be prepared to innovate, to try new ideas to make re-employment of mature workers work’.

Source: The Straits Times, 21 June 2007

Research house upbeat on property stocks »« Should Temasek’s thoughts turn closer to home?