LAST Thursday's article ("More needs to be done for low-wage workers") highlighted the most fundamental reason that retirement adequacy is seemingly unattainable, especially for the low-wage workers.
If one has accumulated a tidy retirement nest egg in the form of cash, Central Provident Fund savings and other investments, the impact following the upcoming tweak in the CPF system is minimal on him. But this is not so for a low-wage worker.
The Workfare Income Supplement targeting mainly low-wage workers can be enhanced further, to help them accumulate some funds in their CPF accounts for retirement.
Companies which have a large pool of low-wage workers can do their part by offering training opportunities to upgrade the skills and knowledge of their workers, so that they can take on more challenging roles to earn a higher pay.
The authorities could explore offering incentives in the form of a CPF top-up for workers attending approved workforce-related training activities after work.
Low-wage workers must recognise that while efforts from their companies and the Government are made to assist them to save sufficient funds for retirement, funding retirement is purely the responsibility of each individual. To do so, reducing spending on non-essential items is a must and this has to be practised with much self-discipline.
The above suggestions could assist low-wage workers to accumulate some funds for retirement.
Lim Lih Mei (Ms)
If one has accumulated a tidy retirement nest egg in the form of cash, Central Provident Fund savings and other investments, the impact following the upcoming tweak in the CPF system is minimal on him. But this is not so for a low-wage worker.
The Workfare Income Supplement targeting mainly low-wage workers can be enhanced further, to help them accumulate some funds in their CPF accounts for retirement.
Companies which have a large pool of low-wage workers can do their part by offering training opportunities to upgrade the skills and knowledge of their workers, so that they can take on more challenging roles to earn a higher pay.
The authorities could explore offering incentives in the form of a CPF top-up for workers attending approved workforce-related training activities after work.
Low-wage workers must recognise that while efforts from their companies and the Government are made to assist them to save sufficient funds for retirement, funding retirement is purely the responsibility of each individual. To do so, reducing spending on non-essential items is a must and this has to be practised with much self-discipline.
The above suggestions could assist low-wage workers to accumulate some funds for retirement.
Lim Lih Mei (Ms)
