CPF review looking at more flexible options
Central Provident Fund (CPF) members may get more options in deciding on how much they want to save, instead of a one-size fits all approach to retirement funding.
Focusing on how much each individual needs is an approach that the CPF review will consider.
Manpower Minister Tan Chuan-Jin said: "When you are looking at different levels of payouts, there are different amounts that they need to save and they need to keep in their CPF."
Speaking to the media in a wide-ranging interview on manpower issues, he said the advisory panel set up by the Government in September to review the CPF should have its first set of recommendations ready early next year.
Mr Tan indicated a shift from the current approach, where the Government stipulates one Minimum Sum for all members.
"I think we are looking at perhaps various options available and then tied to those options, the differing amounts that you need to accumulate," The Straits Times quoted him as saying.
"We realised that that's the thing because actually people do have different needs and people are looking at different requirements."
But he also cautioned that having too many options could mean over-complicating the CPF, which is already a complaint among many people.
The panel has to deal with varying demands on CPF, with many people wanting more flexibility in using their own savings.
"There are individuals who feel that this is my money and therefore why should I not be allowed to take it out," Mr Tan said.
"But I think the idea really is to help provide every individual with at least a basic savings plan of sorts... for the long term."
In the interview, he also covered issues such as rehiring workers beyond the age of 65 and raising productivity.
The Government will use the law to compel firms to rehire workers until age 67 in "two to three years time", he said, urging firms to use the incentives that the Government is planning to announce early next year to make the transition.