In addressing people who do not have the required CPF minimum sum, the government has to consider this question about how much they can be allowed to withdraw from the minimum sum from age 65:
a) Should the monthly withdrawal be reduced according to the available minimum sum and the payment be continued for 20 years or for life?
b) Should the monthly withdrawal be allowed at the level that is needed for their current needs, say $800 a month, although the minimum sum may run out earlier?
The government has chosen method (a).
I think a better decision is method (b). The retiree needs a minimum sum to survive from month to month. Their immediate needs are greater than their longer term needs.
They have to face a separate problem when their minimum sum is exhausted, but at least they can live adequately for the immediate future.
Tan Kin Lian
a) Should the monthly withdrawal be reduced according to the available minimum sum and the payment be continued for 20 years or for life?
b) Should the monthly withdrawal be allowed at the level that is needed for their current needs, say $800 a month, although the minimum sum may run out earlier?
The government has chosen method (a).
I think a better decision is method (b). The retiree needs a minimum sum to survive from month to month. Their immediate needs are greater than their longer term needs.
They have to face a separate problem when their minimum sum is exhausted, but at least they can live adequately for the immediate future.
Tan Kin Lian
No comments:
Post a Comment