CPF: Low retirement adequacy?

CPF payouts insufficient for retirement?

I refer to the article “CPF payouts ‘fall short for higher-income earners'” (Sunday Times, Dec 6).

Lower income better off?

It states that “Men at the 30th income percentile, however, could achieve a gross replacement rate of 71.3 per cent by annuitising the full amounts in their CPF accounts, Ms Miksa noted.

This suggests that lower-income earners could rely on CPF payouts for retirement income.”

Lower income may be worse off?

As only an estimated 1 in 6 Singaporeans at age 55 were able to meet the full CPF Minimum Sum (currently $161,000) without pledging property – the lower income may be even more financially stretched in retirement.

Low retirement adequacy due low %?

As to “Singapore scored lowly on retirement income adequacy due to “the lack of a social safety net” and having “one of the highest out-of-pocket healthcare costs in the world”” – to what extent has our very low CPF interest rates (the lowest real returns amongst all national pension funds in the world?) contributed to our low retirement adequacy?

Leong Sze Hian


About the Author

Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.