Business Times SPECIAL: Government considering CPF Retirement Investment Scheme design

[Old C]

>>> One major challenge is that people are living longer, raising concerns about insufficient retirement funds. Singapore tackles this on two fronts, said PM Wong. First, Singaporeans must be prepared to work for longer. Second, retirement savings must be made to last throughout one’s lifetime, no matter how long this is <<<

>>> As Singaporeans live “much longer lives compared to any other period before”, mindsets must shift with the times, said Dr Tan See Leng. “If you look at the broad overview of what we are doing in the Forward Singapore construct, our assurance to every one of our Singaporeans is that as long as you work and contribute consistently to CPF, we will do our best to ensure that your finances in retirement will be adequate,” he said. <<<

https://www.businesstimes.com.sg/si...ible-cpf-retirement-investment-scheme-pm-wong

 

[testerjp]

Live expectancy dropped since covid leh. Live smlj longer?

Drop already retirement age increase instead.

https://tablebuilder.singstat.gov.sg/table/TS/M810501

 

[enimen]

Gov should give cpf higher interest returns, like 8% do we can retire without worry

 

[BusyBeeWorker]

****... sounds like lost too much money.....need to lock up our money for longer and make us contribute more....

 

[HWZ1973]

Go and learn from the Norway's sovereign wealth fund la...

 

[1 Ghz]

Maybe CPF should just allow participants to invest in Irish domiciled ETFs, with a warning that those investments are subject to currency fluctuations ...

 

[LocalRider]

>>> One major challenge is that people are living longer, raising concerns about insufficient retirement funds. Singapore tackles this on two fronts, said PM Wong. First, Singaporeans must be prepared to work for longer. Second, retirement savings must be made to last throughout one’s lifetime, no matter how long this is <<<

>>> As Singaporeans live “much longer lives compared to any other period before”, mindsets must shift with the times, said Dr Tan See Leng. “If you look at the broad overview of what we are doing in the Forward Singapore construct, our assurance to every one of our Singaporeans is that as long as you work and contribute consistently to CPF, we will do our best to ensure that your finances in retirement will be adequate,” he said. <<<

https://www.businesstimes.com.sg/si...ible-cpf-retirement-investment-scheme-pm-wong

can we split and compare the average life expectancy of local born to imported ones, see whether this cpf life is they jiak us or we jiak them?

 

[ToonBlue]

Gov should give cpf higher interest returns, like 8% do we can retire without worry

U wait long long...

 

[bigrooster]

""to see if such a scheme can be designed to provide certainty of greater returns while minimising risk, said Prime Minister Lawrence Wong."

Said the one who gave surprise and insufficient notice to close off CPF-SA for 55+, which provided what was bolded above.

 

[Old C]

>>> But what remains consistent is the objective of continuing to raise contribution rates for senior workers, while being “very conscious and mindful of the sustainability of the business”. The issue of raising contribution rates is “a constant dialogue” with tripartite partners, the minister added. <<<

 

[leonaheidern]

Gov should give cpf higher interest returns, like 8% do we can retire without worry

the gambling hole since COVID too much to cover liao. more like they reduce returns instead or keep your money in some hole somewhere


Read HWZ Forum Rules!

 

[ckt1978]

Design for 80 then can take issit.

 

[artncraft]

Aren't GIC and Temasek supposed to do that?

This sounds like a scam.

We have many forum members here thinking of putting in ERS and wait for stable 4% return.

 

[Senfai]

Stopped reading at low risk high return.

 

[enimen]

What will happen if they dump the entire sg cpf into SPY etf?

 

[1 Ghz]

What will happen if they dump the entire sg cpf into SPY etf?

It will likely be very superior to SA + bonus interest at the end of 30 yrs ...

 

[Old C]

AI analysis of Business Times report:

The implications for individuals regarding the potential CPF retirement investment scheme and other policies discussed by PM Wong are significant:

1. Opt-in Investment Scheme: If a retirement investment scheme is introduced, individuals would have the opportunity to opt-in and invest in managed funds, which could offer higher returns than the current risk-free government returns. However, this also means that individuals could face some level of financial market risk, especially during retirement, if the market experiences volatility. Those opting for this scheme would need to carefully assess their risk tolerance and financial goals.
2. Retirement Planning in the Face of Longer Life Expectancy: As people live longer, they will need to plan for retirement savings that last through potentially longer retirements. Individuals may need to contribute more to their CPF and consider working for a longer period to ensure they have enough funds for a sustainable retirement. This requires shifting mindsets and better planning, especially since many tend to underestimate how long they might live.
3. Work and Contribution Adjustments: The government’s focus on increasing CPF contribution rates for senior workers means that older individuals may see higher contributions over time. However, the balance must be maintained with business sustainability, and individuals will need to keep track of how changes in CPF rates impact their retirement savings.
4. Increased Focus on Healthcare Costs: As the government continues to review CPF healthcare aspects, individuals should expect that healthcare-related savings (such as MediSave) and insurance premiums may change over time. With rising medical costs, individuals will need to consider these rising expenses as part of their retirement planning and ensure their CPF accounts are well-prepared for future healthcare needs.
5. Review of Retirement Sums: The potential periodic review of the Basic Retirement Sum (BRS) and other CPF sums means individuals may need to adjust their retirement plans based on any changes. Higher inflation or adjustments to the BRS could require individuals to save more for retirement or reassess their financial goals.

 

[lalalalalala]

Knn might as well just let me bet when i die with the cpf money and payout everything.

Lock here lock there extend this and that. By the time i reach whatever age the whole system also change already

 

[kuti-kuti]

ok, he said 'opt in', don't force..

OPT-IN..... REMEMBER, OPT-IN

 

[Medicated Oil]

Are they not investing now and making some HUGE success over the years ?
Hitting the jackpot with every single shot.