Dr Tan shared that among existing options to plan for higher retirement payouts, members can choose to defer the start of their payouts till age 70, when it comes to the CPF Life scheme.
Singaporeans are already presented with many options to plan for higher retirement payouts, in and out of the CPF system, Minister for Manpower Dr Tan See Leng has clarified.
"Within the CPF system, members who wish to have higher CPF LIFE payouts can set aside an Enhanced Retirement Sum, which is triple of the Basic Retirement Sum. The prevailing Enhanced Retirement Sum is currently $279,000. The Enhanced Retirement Sum is revised annually, together with the Basic and Full Retirement Sums," he said.
The minister was responding to a question by Member of Parliament (MP) Foo Mee Har on Wednesday (28 July), who asked if CPF Life will be updated to allow the option for for more voluntary savings under the CPF scheme, to provide for retirement payouts closer to PMETs' pre-retirement income.
Dr Tan added that members who wish to boost their retirement income further, can choose to defer the start of their payouts till age 70, which could then increase their retirement income by up to 35%.
Apart from the CPF system, Dr Tan shared that Singaporeans can also save more during their working years, by making voluntary contributions to the Supplementary Retirement Scheme (SRS).
"The savings in the SRS plus any investment gains can be used to purchase private annuity plans, which can further supplement CPF LIFE payouts."
In a separate, written response, Dr Tan also tackled a question by MP Gan Thiam Poh on whether the Manpower Ministry will the current policy and introduce the CPF contribution scheme to Employment Pass (EP) and EntrePass holders.
He explained that since 2003, all foreigners working in Singapore have not been allowed to contribute to CPF or receive CPF contributions from employers. The CPF system, he added, is designed to support Singapore Citizens and Permanent Residents in their retirement, housing, and healthcare needs.
"As foreign PMEs are not working in Singapore on a permanent basis. We are not responsible for their retirement adequacy or home ownership needs. CPF coverage and benefits are not extended to them. Foreign PMEs should make their own financial plans for retirement and can leverage on available financial products.
"The idea that this disadvantages Singaporeans is misconceived. We set a qualifying salary for EP holders in order to maintain a level playing field. The minimum qualifying salary is currently S$4,500 for the youngest EP applicants. The qualifying salaries for older and more experienced EP candidates increase such that those in their 40s will need to earn around double the minimum qualifying salary for the youngest applicants."
The setting of this qualifying salary takes into account CPF contributions as part of the cost to employers, he concluded.
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