I AM worried about calls to do away with the Central Provident Fund (CPF) Minimum Sum and for Singaporeans to do what they like with their CPF monies.
If there was no compulsory savings system, how many Singaporeans would have the discipline to set aside funds monthly for their retirement?
In fact, even with CPF, there is a case for Singaporeans to save more, as the CPF Minimum Sum, which is now $161,000, assures Singaporeans of only $1,200 to $1,300 monthly after they turn 65.
That is not enough for many Singaporeans to maintain the lifestyle that they want after retirement, particularly if they are in pursuit of the five Cs.
Moreover, CPF savings are often reduced by housing loans, medical expenses, education, private integrated health plans and losses in investments.
There are also those who do not work owing to illnesses or disabilities, or who are stay-at-home parents, who thus have fewer opportunities to accumulate CPF savings.
There have been reports of Singaporeans who squander their money and CPF savings which they have withdrawn, showing a need for the CPF Minimum Sum.
There has been talk about helping retirees lead a basic but dignified lifestyle ("Ho Kwon Ping proposes 'CPF-Plus' "; March 5).
But Singaporeans should not develop the mindset that they have the Government to lean on, should mishaps befall them.
David Poon Soon Cheong
If there was no compulsory savings system, how many Singaporeans would have the discipline to set aside funds monthly for their retirement?
In fact, even with CPF, there is a case for Singaporeans to save more, as the CPF Minimum Sum, which is now $161,000, assures Singaporeans of only $1,200 to $1,300 monthly after they turn 65.
That is not enough for many Singaporeans to maintain the lifestyle that they want after retirement, particularly if they are in pursuit of the five Cs.
Moreover, CPF savings are often reduced by housing loans, medical expenses, education, private integrated health plans and losses in investments.
There are also those who do not work owing to illnesses or disabilities, or who are stay-at-home parents, who thus have fewer opportunities to accumulate CPF savings.
There have been reports of Singaporeans who squander their money and CPF savings which they have withdrawn, showing a need for the CPF Minimum Sum.
There has been talk about helping retirees lead a basic but dignified lifestyle ("Ho Kwon Ping proposes 'CPF-Plus' "; March 5).
But Singaporeans should not develop the mindset that they have the Government to lean on, should mishaps befall them.
David Poon Soon Cheong
