According to the Future on Retirement survey done by HSBC bank,
most Singaporeans will have less than the current minimum sum of
$131,000 in savings including their monies in their CPF accounts on
retirement:
[Source: HSBC]
CPF board recently announced the raising of the minimum sum (MS)
to a shocking $131,000 to prevent Singaporeans from withdrawing
their hard-earned savings for their twilight years. The new MS will
apply to unfortunate Singaporeans who turn 55 from July 1 2011 to
June 30 2012.
Upon reaching 55 years of age, the ordinary and special accounts
of CPF holders will be merged to form a retirement account (RA).
Singaporeans are required to have a MS of $131,000 (now) in their
RA before they can withdraw their ‘excess’ savings not exceeding
$5,000 at 55 years of age without which they can only withdraw them
in the form of monthly payouts starting at 65 years old.
If they pass away prematurely, their life-long savings in the RA
will be passed on to their spouse, children or nominees. Otherwise,
they will be ‘eaten up’ by the PAP regime under the Intestate
Succession Act. This means that the PAP regime will always hold a
certain percentage of Singaporeans’ savings in the CPF coffers.
Based on the HSBC survey, the average Singaporean have only
$120,000 in savings for retirements and this amount include non-CPF
savings and investments. The result is not surprising as the CPF
savings of most Singaporeans are tied up with mortgages to finance
their over-priced HDB flats.
It is little wonder that though Singaporeans have one of the
highest saving rates in the world, few have enough savings for
retirement with many having to work for as long as they can till
they drop dead and die, as exhorted by PAP supreme leader Lee Kuan
Yew who is still ’serving’ Singapore as a MP at 88 years of
age.
