A call was made in Parliament yesterday to get higher returns on Central Provident Fund (CPF) savings so that it is not too difficult for Singaporeans to reach the Minimum Sum they need to set aside for retirement.
Mr Zaqy Mohamed, MP for Chua Chu Kang GRC, proposed a government-backed investment plan that would offer higher interest rates and account for inflation.
This is one way the Government can improve on returns on CPF savings, and thereby reduce citizens' unhappiness with the Minimum Sum's "changing goal-posts", he said, referring to the increases in the Minimum Sum requirement to meet rising living costs and longer life spans.
Mr Zaqy kicked off the debate on the President's address, flagging retirement adequacy, jobs and business competitiveness, and policy execution as key areas the Government will have to work hard on.
"Residents I speak to are often concerned about whether they can retire comfortably in Singapore. Most are also concerned whether their CPF savings can meet the Minimum Sum, pay for their homes, afford their children's education or support the medical fees if they have a family member that needs constant medical care.
"Our cost of living is high by many international standards, and one major illness can set back your savings by a lot - especially if one is still supporting parents or children with a medical condition," he said.
People need to feel more reassured that they can retire comfortably in Singapore, he said, welcoming the review of CPF policies as timely.
This article was first published on May 27, 2014.
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