Wednesday, January 13, 2016

Is CPF adequate for retirement?

A retired banker said that the recent CPF changes do not go far enough to address retirement needs.

I agree with this view. However, the gap should be covered by personal savings, rather than by adding more contribution to the CPF scheme.

Here is how it can be done.

The government set out the special account to make sure that about 15% of the wages are set aside for retirement. This provides a floor. It should be supplemented by an additional saving of 15% of wages outside of CPF. The additional savings can be used for emergencies, education and unemployment.

This is explained in my book on financial planning (,

It is also explained in my talk which will be held on 9 April.


Anonymous said...

To help the members CPF should start investment funds for members to enhance according to their needs and must stop allowing the insurance agents to invest the members' money in rubbish products like endowment, ILPs or UTs.
Why members cannot accumulate enough even to meet the minimum sum is becuase members' money is put in the wrong hands; insurance salesmen who are not qualified and dishonest and who are only interested in the commission. Since 2001, 15 years on, many members' accounts are still showing losses. And those that are not their accounts only equal or marginally beat the 2.5%. So , is it wise to let insurance salesmen 'invest' on behalf of members? No! CPF must start funds for those who want to take risks to grow their money and not leave in the hands of wolves or snakes as keepers.
For consumers, it serves you well not to trust these insurance salesmen. I am not biased. They are really NOT qualified and competent and worse many are dishonest.

Anonymous said...

I agree. CPF should stop allowing insurance salesmen to invest CPF members' money.
They are a bunch of useless , incompetent and dishonest salesmen.
As mentioned above, have these salesmen who go by fancy financial titles added value to CPF members. I suggest that those members who were conned into investing should come forward to seek financial experts to see if they can take legal action against their insurance agents for losses.
Consumers, remember this your hard earned retirement fund. It is your right to get justice.

Anonymous said...

If Singaporeans cannot retire or have not enough fund for retirement blame it on themselves. They are kiasu and because of this they become prey to insurance agents who sell them toxic rotten endowment and whole life insurance . Especially the aunties and uncles they like to hear the word 'guarantee' and they will fall for it. The insurance agents know it and always the word 'guarantee' is at the heart of their con presentation, sure close one. The truth is, if aunties and uncles fall for this trick they are the ones who will not be able to retire but the insurance agents who retire with lots of money , car and a condo to boot.
Wake up, lest your retirement fund go in smoke . The insurance endowment and whole life products are toxic to your retirement.

Anonymous said...

The public is very far from savvy and therefore need protection from the regulator.
In whatever transactions the sellers/advisers/insurance agents must bear the full responsibility if things go sour.

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