SINGAPORE: Singapore’s Minister of Manpower Dr Tan See Leng has announced that by 2022, around half of active CPF members aged 55, or a total of 19,700 people, will meet their Full Retirement Benefits (FRS) requirements by saving cash. revealed.
In contrast, approximately 3 in 10 members were unable to do so.
In contrast, seven out of 10 active CPF members who turned 55 last year had accumulated at least the CPF basic retirement benefit (BRS).
A CPF member who turns 55 in 2022 has a BRS of S$96,000, but a FRS of S$96,000. S$192,000according to a fact sheet provided by the Ministry of Manpower (MOM).
In response to a parliamentary question by Labor MP Louis Chua Keng Wee on Wednesday (October 4), Dr Tan shared data on the number of Singaporeans who can meet the CPF’s Full Retirement Benefit (FRS) criteria. .
Mr Chua asked the Minister how many Singaporeans were able to accumulate their CPF Full Retirement Benefits (FRS) fully in cash and in a mix of property and cash in each of the past five years. And how many Singaporeans cannot put FRS aside?
In response, Dr Tan confirmed that the proportion of active CPF members reaching the age of 55 who have accumulated FRS in cash has increased from about 40% in 2018 to about 50% in 2022.
The specific numbers for these members are as follows:
| Year | Active CPF members who have reached the age of 55 and have accumulated FRS in cash. |
| 2018 | 17,000 |
| 2019 | 18,000 |
| 2020 | 18,500 |
| 2021 | 19,100 |
| 2022 | 19,700 |
Furthermore, from 2018 to 2022, approximately 20% of active CPF members reaching age 55 each year chose to allocate their FRS in a combination of property and cash rather than outright cash.
| Year | An active CPF member who is 55 years old accumulates FRS using a combination of property and cash. |
| 2018 | 6,900 |
| 2019 | 6,800 |
| 2020 | 6,900 |
| 2021 | 7,100 |
| 2022 | 7,000 |
Importantly, approximately 30% of active CPF members who turned 55 in 2022 were unable to meet the FRS criteria with cash or a combination of cash and property, amounting to approximately 13,400 members.
Only 65% of active CPF members aged 55 years achieved BRS and property ownership
Of note is the report “Minimum income standard in 2023: Household budget in an era of rising pricesA survey conducted by NTU and LKYSPP found that among active CPF members who will turn 55 in 2021, whether they have saved enough for their CPF Basic Retirement Benefit (BRS) and own property, or have saved their entire retirement benefit. It became clear that only 65% of people were.
The report notes that within the Central Provident Fund (CPF), modest increases in BRS and FRS did not have a significant impact on retirement income adequacy.
Zhulkarnain Abdul Rahim, Member of Parliament for Chua Chu Kang GRC, also submitted a separate PQ asking what steps the Ministry of Manpower could take in collaboration with employers to raise awareness of proper retirement planning among workers, especially older workers. I asked the Minister of Labor if he would take action.
In response, Dr Tan emphasized that ensuring the adequacy of basic retirement benefits starts with maintaining a competitive economy that generates quality employment opportunities.
“We uplift low-wage workers through workfare and progressive wage movements. Singaporeans can meet their basic needs in retirement as long as they work and continue to contribute to the CPF. I can be sure of that.”
Dr Tan also revealed that around 7 out of 10 active CPF members who will turn 55 in 2022 were able to save more than their CPF basic retirement allowance.
He expressed optimism that this number would improve to around 8 in 10 for CPF members who reach the age of 55 by 2027.
Dr Tan said the government is supporting older Singaporeans to work longer to further strengthen their retirement suitability.
Dr Tan said the PAP government is committed to providing support as the life expectancy of older Singaporeans who wish to continue working is increasing.
“We will support them by raising the statutory retirement and re-employment ages from the current ages of 63 and 68 to 65 and 70 respectively by 2030.”
“This will enable older people to work longer if they wish, further strengthening their retirement suitability.”
Retirement planning is ultimately an individual’s responsibility. Dr Tan said that to support Singaporeans on this journey, the CPF Board, MoneySense and the Institute for Financial Literacy (IFL), MoneySense’s ground support arm, will carry out outreach efforts and provide resources on retirement planning. I emphasized that
“For example, CPF members who reach age 55 can benefit from one-on-one CPF retirement planning services that provide personalized guidance to help them make informed decisions about how best to use their CPF savings to prepare for retirement. You are invited.”
The CPF Board also regularly engages and educates members about retirement planning through social media platforms, electronic direct mail, and in-person community events/talks.
“The CPF Board Retirement Planning Campaign is also held annually to encourage Singaporeans to plan for their retirement.”
IFL is expanding its support through free one-on-one financial health clinics and retirement planning workshops covering a variety of topics including money management, CPF savings management, and estate planning.
“To reach employees, IFL has partnered with employers to offer workplace financial literacy programs.”
