Reposted from Redwire Times
Singapore
Many people have expressed in the social media that they are not
happy that the CPF savings cannot be withdrawn at 55 or even 65.
They felt strongly that the government did not have the right to
delay payment and are doing so, as they do not have the funds to
pay back the CPF.
It is quite easy for the government to print money to pay back
the CPF, so this “lack of funds” is not the reason.
The stated reason of the government is that it is better for the
savings to be withdrawn in monthly installments over the lifetime.
This is why the CPF Life was being introduced.
While I understand the genuine intent of the government, I
believe that they are following the wrong policy and are not aware
of the problem faced by the ordinary people.
Here are the underlying problems:
1. Many citizens do not have any savings besides CPF. Some of
them have accumulated debts (e.g. due to unemployment or education
of their children) and need the CPF savings to pay off these
debts.
2. The high cost of HDB flats have wiped out most of their
personal savings and CPF savings, leaving them with with no spare
funds to withdraw, after setting aside the minimum sum.
3. For people who are short of funds, their immediate need is to
have access to the money now, rather than to keep it for the
future.
It is important for the government to recognize the real
financial issues facing many people, and to review their current
policy of continuing to increase the minimum sum.
