Tharman gives assurance on CPF retirement savings

Deputy Prime Minister Tharman Shanmugaratnam on Monday reassured MPs concerned about whether people have enough retirement savings, citing figures to show the Central Provident Fund (CPF) system meets the basic retirement needs of low to lower-middle income Singaporeans.

He also clarified the role of the mandatory savings scheme, saying it is not designed to meet the needs of higher-income earners, who often have private savings outside the CPF.

The Minimum Sum that a CPF member must set aside at age 55 is now $131,000. That sum gives a monthly income of $1,100 for life from age 65 under the CPF Life annuity scheme.

It is enough to meet the typical spending needs of a two-member, lower-middle income retiree household - that is, one between the 20th and 40th percentile by income.

'Some people think the Government introduced CPF Life to hold on to their money for life. Actually, all it means is that you get paid for life.'
Manpower Minister Tharman Shanmugaratnam