SINGAPORE - Central Provident Fund (CPF) members will soon have the option of making lump sum withdrawals from their CPF accounts after they retire, said Prime Minister Lee Hsien Loong in his National Day Rally speech on Sunday.
Get the full story from The Straits Times.
On what purpose CPF funds should take, Mr Lee said its core purpose should still be providing a steady stream of income in old age.
In addition to monthly payouts, he acknowledged that some members may want to make lump sum withdrawals as they may need money to do things that they have long wanted to, such as go on a journey or a haj, fulfil a lifetime dream, or attend to family emergencies.
Mr Lee said the government will give people the option to make lump sum withdrawals from their CPF when they need to, but subject to limits. A possible cap could be 20 per cent of total CPF savings. Members can also only make such withdrawals during their retirement, that is at age 65 and beyond.
But he also warned that making lump sum withdrawals will mean less in the CPF account, and monthly payouts will be accordingly smaller.
He added that the Ministry of Manpower (MOM) has worked out some possibilities, with an advisory panel to study how to work flexibility into the CPF scheme. MOM will announce details of the panel soon.
A new Silver Support scheme will be introduced for low-income Singaporeans. It will give basic payout each year, from 65. #ndrsg— Lee Hsien Loong (@leehsienloong) August 17, 2014
PM: Panel will study how CPF can be more flexible, to allow option to take out part of CPF savings in lump sum, subject to limits. #ndrsg— Lee Hsien Loong (@leehsienloong) August 17, 2014
About 10-20 per cent of Singaporeans may not accumulate enough CPF during their working lives. #ndrsg— The Straits Times (@STcom) August 17, 2014
CPF members 65 and older will be allowed to take out part of their CPF savings in a lump sum, but amount cannot be excessive. #ndrsg— The Straits Times (@STcom) August 17, 2014
CPF scheme – better support for low-income elderly & more flexible use of Min Sum. All welcome moves.But devil may be in the details. #ndrsg— Zuraidah Ibrahim (@zuibrahim) August 17, 2014
PM: Minimum Sum will be $161k for pple turning 55 from 1/7/15. $80.5k with property pledge. #ndrsg— Lee Hsien Loong (@leehsienloong) August 17, 2014
CPF Miniumum Sum to be raised one more time next year to $161,000. There should be no need for major increases after, says PM Lee. #ndrsg— The Straits Times (@STcom) August 17, 2014
Advisory panel to study how to build more flexibility into CPF system, such as giving people more flexibility in investing. #ndrsg— The Straits Times (@STcom) August 17, 2014
PM announces panel to advise on other CPF improvements. Glad that Govt is moving on this front #ndrsg— Zuraidah Ibrahim (@zuibrahim) August 17, 2014