Claiming that Singaporeans are living beyond 90 years old, Manpower Minister Josephine Teo yesterday (Jul 29) told state media Straits Times in an interview that she will be raising the CPF payment rate and Retirement Age. The current Retirement Age is 62, raised from 55, while the current payment rate is 37%.
According to the newly-appointed “4G” Minister, Singaporeans will need to pay more CPF because they live longer:
“With Singaporeans living longer and standards of living improving, there is a need to relook the issue of whether they have enough to retire on. one in two Singaporeans aged 65 today is expected to live beyond 85, and one in three will live beyond 90. This means people will spend longer in retirement and so will need to save more during their working years. People’s expectations have also changed, and they may need more money to maintain their standard of living in retirement.”
A new Retirement Age will effect a change in the CPF Withdrawal Age, which is currently at 65 years old. The Singapore government are currently making plans to delay the Withdrawal Age to 67.
The increasing delays to CPF is a result of Prime Minister Lee Hsien Loong making undisclosed overseas investment losses with his sovereign wealth fund company GIC. The corrupted PM, since he inherited his premiership from his father in 2004, has been depressing CPF interest rates at 2.5% and changing existing CPF laws to get his hands on cheap funds. GIC need only pay the coupon rate of a special government bond called SSGS, that is pegged to the prevailing CPF interest rate.