Giving a speech proposing to change the Constitution, Deputy Prime Minister Tharman Shanmugaratnam said that Singapore government have 3 “thrusts” to help Singaporeans retire:
1) Selling or renting out your home when you are old
2) Earn higher returns from CPF by investing
3) Work as long as you can
Minister Tharman said that these 3 “thrusts” can ensure Singaporeans to have enough money to live on well into retirement. However, the Minister did not explain the contradiction between working past retirement age and having a retirement. Also, over 85% of the CPF Investment Scheme did not return the mandated Ordinary Account return of 2.5% over the past 10 years. It is unclear how is Minister Tharman delivering the “higher return” without CPF investment.
Making a sales pitch explaining why the Constitution needs to be changed to 500 economists and guests at the annual dinner of the Economic Society of Singapore, the former Finance Minister claimed that CPF returns are “guaranteed” and that Singapore is a “triple-A rated” government, made possible only because of “sound governance”. Minister Tharman then claimed that the Constitution needs to be re-written according to Prime Minister Lee Hsien Loong’s wishes.
Prime Minister Lee Hsien Loong is scrambling to change the Presidential requirements ahead of the upcoming election as he is worried that a non-PAP endorsed President will expose the amount of national reserves and CPF money.