According to the Central Provident Fund (CPF) advisory panel, if Singaporeans are worried about losing their fixed monthly retirement payout to yearly inflation, they should lower their CPF payout to enjoy a 2% yearly increase or delay their withdrawal to 69 years old. The CPF advisory panel refuse to increase the mandated 2.5% interest rates or lower Withdrawal Age and Minimum Sum, despite demands from the public.
Also in the highlight, the CPF Investment Scheme proved to be a disaster with only 16% of the members having returns higher than 2.5%. 38%, or 484,120 members, lost money in CPF Investment Scheme. However, despite so, the CPF advisory panel said that CPF members should further increase their risk appetite to get higher returns.
There is no mention of a mandated pension-like minimum payout for those who have little or no CPF contributions during their earlier years like housewives and odd job labourers.
Singapore’s troubled retirement system CPF has jeopardized retirement and created a generation of silver-haired workers working past their 65 year old. Most low income and poor are elderly Singaporeans who cannot afford to retire.
CPF funds are indirectly managed by the country’s two sovereign wealth fund companies headed by Prime Minister Lee Hsien Loong and his wife Ho Ching. Criticizing the relationship between CPF funds, Lee Hsien Loong and his wife will warrant a defamation lawsuit. Earlier this year, online blogger Roy Ngerng was sentenced by court to pay S$150,000 in defamation damages to the dictator Prime Minister.