CPF members to enjoy 12% savings on HPS premiums

SINGAPORE: From January 2012, HDB homeowners will be paying lower premiums for the Home Protection Scheme (HPS).

Announcing this on his Facebook Page, Minister of State for Manpower and National Development Tan Chuan-Jin said the move will benefit 80 per cent of CPF (Central Provident Fund) members who are currently paying these annual premiums.

They will enjoy an average discount of about 12 per cent.

For example, a male member, aged 36 years old, who is servicing a S$150,000-housing loan from the Housing and Development Board for 25 years will pay a premium of S$195.30, instead of S$223.05 when he joins the scheme from 1 January.

That is a discount of 12 per cent.

Members who join the HPS scheme on or after 1 January will get to enjoy the new rates. Existing members paying annual HPS premiums will pay the lower premiums when they renew or adjust their HPS coverage on or after 1 January.

The HPS is a mortgage-reducing insurance scheme and has been around since 1981.

It protects CPF members and their families from losing their homes, should the CPF member become permanently incapacitated or pass away before their home loans are paid up. The key objective of HPS is to provide home protection to as many CPF members as possible.

Premiums can be paid from a member's CPF Ordinary Account savings.

The CPF Act was also recently amended to allow for the portability of HPS cover to a newly acquired property, meaning that CPF Board will waive the requirement of good health if the member's previous property was under HPS.

Mr Tan said he was glad this adjustment had been made.

He added: "It is important to keep HPS sustainable and affordable to members for the long term. While I hope that we will never ever need to file a claim from HPS, it is assuring to know that our family members are protected against losing their homes, should anything unfortunate happens to us."

BG Tan urges Singaporeans to plan for retirement early

Instead of sipping coffee at their favourite breakfast joints, more than 500 Singaporeans spent their Sunday morning getting tips on how to plan for retirement.

The audience, many of whom were reaching 55 years of age, were attending talks organised by the Central Provident Fund (CPF). Topics covered included managing healthcare and housing costs.

Minister of State for Manpower and National Development Tan Chuan-Jin was the guest of honour at the event, which was held at the NTUC auditorium at Marina Boulevard.

Many among the audience nodded and listened intently as BG (NS) Tan urged them not to overstretch their finances and to prepare for uncertainties such as changes in income levels.

The minister also launched two initiatives: The 'Are You Ready' website (www.areyouready.com.sg) to help people assess their readiness to retire; and the Minimum Sum Topping-Up campaign, where Singaporeans who top up their or their loved ones' CPF accounts before December 15 stand to win prizes worth up to $4,000.

"Are You Ready" to retire?

SINGAPORE: The Central Provident Fund (CPF) Board has launched a campaign "Are You Ready" to help Singaporeans kickstart their retirement planning.

It will help to educate them on financial literacy with a checklist of four themes - cash flow, heath care, housing and retirement.

Speaking at the launch of the campaign on Sunday, Minister of State for Manpower and National Development Tan Chuan-Jin noted that some Singaporeans are already ensuring that they have enough savings.

He said records from the CPF Board showed that about 60 per cent of members do not make withdrawals when they reach the age of 55.

Brigadier-General Tan also said that many CPF members have been voluntarily making top-ups for their loved ones through the Minimum Sum Topping-up Scheme.

Over the past five years, the number of these transactions has gone up by 36 per cent while the top-up amount has grown by 33 per cent.

Last year, there were about 30,000 minimum sum top-up transactions, amounting to S$250 million.