THE recommendations by the Central Provident Fund (CPF) advisory panel to give members more control are laudable ("Proposed CPF changes give members more control"; yesterday).
However, more can be done.
First, allow CPF members to join the CPF Life scheme after the age of 55 (but before 65).
CPF members may not have accumulated enough funds at age 55 to join CPF Life. Yet, many of them will still be working after 55 and will be accumulating savings in their CPF. Their children may also top up their parents' CPF accounts, enjoying tax relief at the same time.
Thus, some CPF members may have enough funds to join CPF Life only after age 55.
Second, the new Enhanced Retirement Sum will be welcomed by those who have higher savings in their CPF. However, capping the sum at $241,500 with a monthly payout of between $1,750 and $1,900 may not go far enough.
Many CPF members may still need other private annuity schemes to ensure that they have sufficient income for their retirement needs.
Perhaps it could be left to individual members to decide the sum they wish to set aside in CPF Life for retirement. The CPF Board may provide advice on the estimated payout based on the sum the member wishes to set aside for the scheme.
Tan Hong Choon
However, more can be done.
First, allow CPF members to join the CPF Life scheme after the age of 55 (but before 65).
CPF members may not have accumulated enough funds at age 55 to join CPF Life. Yet, many of them will still be working after 55 and will be accumulating savings in their CPF. Their children may also top up their parents' CPF accounts, enjoying tax relief at the same time.
Thus, some CPF members may have enough funds to join CPF Life only after age 55.
Second, the new Enhanced Retirement Sum will be welcomed by those who have higher savings in their CPF. However, capping the sum at $241,500 with a monthly payout of between $1,750 and $1,900 may not go far enough.
Many CPF members may still need other private annuity schemes to ensure that they have sufficient income for their retirement needs.
Perhaps it could be left to individual members to decide the sum they wish to set aside in CPF Life for retirement. The CPF Board may provide advice on the estimated payout based on the sum the member wishes to set aside for the scheme.
Tan Hong Choon
