Other points to note
HIGHER CONTRIBUTION FOR OLDER WORKERS
The panel said it supported the Government's commitment to raise the CPF contribution rates for older workers.
HIGHER CONTRIBUTION SALARY CEILING
The panel said it would be timely for the government to consider raising the cpf contribution salary ceiling, to keep pace with wage growth and to allow cpf members to accumulate more savings for retirement.
MONEY NO ENOUGH?
By 2020, it is estimated that seven in 10 of the active CPF members turning 55 will have enough CPF savings to meet the Basic Retirement Sum of $80,500.
But don't worry if your CPF balance is below the Basic Retirement Sum when you hit 55, because:
- No need to top up the shortfall in cash.
- No need to sell your property to meet shortfall.
- You will still receive monthly payouts from the amount that you set aside, although it will be correspondingly less than the basic payout of $650-$700.
- The panel also proposes mechanisms outside the CPF system, such as the Silver Support Scheme, which will provide low-income elderly with a cash bonus to supplement their payouts from their own CPF savings.