THE National Trades Union Congress' call for higher Central Provident Fund (CPF) contribution rates for workers aged 50 to 55 is long overdue ("Employees cheer ideas, but some firms alarmed"; Thursday).
During the economic downturn in the 1980s, when the retirement age was 55, workers aged 50 and older were deemed slow and less agile.
To give employers an incentive to retain them, the employer contribution rate was cut.
With the retirement age now at 62, and with calls to raise it further, workers aged 50 to 55 should no longer be considered old.
Unfortunately, many employers still prefer to hire young or foreign workers.
Also, HDB flat prices have surged over the years, and many CPF members would
have depleted their retirement funds to service their mortgages. So we need to help them build up their retirement savings.
It is time to remove the difference in CPF contribution rates between workers aged 50 to 55, and younger workers.
Chin Kee Thou
During the economic downturn in the 1980s, when the retirement age was 55, workers aged 50 and older were deemed slow and less agile.
To give employers an incentive to retain them, the employer contribution rate was cut.
With the retirement age now at 62, and with calls to raise it further, workers aged 50 to 55 should no longer be considered old.
Unfortunately, many employers still prefer to hire young or foreign workers.
Also, HDB flat prices have surged over the years, and many CPF members would
have depleted their retirement funds to service their mortgages. So we need to help them build up their retirement savings.
It is time to remove the difference in CPF contribution rates between workers aged 50 to 55, and younger workers.
Chin Kee Thou
