Around 20% Singaporeans don’t have enough CPF for retirement: PM Lee

A new scheme is underway for the underprivileged.

In his National Day Rally speech, Prime Minister Lee Hsien Loong unveiled a significant CPF policy shift to help underprivileged Singaporeans.

According to PM Lee, a minority of 10 to 20 per cent of Singaporeans may not have accumulated enough CPF during their working lives and do not have a HDB flat or family support to fall back on. For these cases, the Government and society must do more to help them in retirement.

The government’s REACH portal highlighted that this group of Singaporeans can look forward to a new scheme for low income elderly resideents called Silver Support where the Government will pay a yearly bonus to Singaporeans starting from 65 years old.

This Silver Support is on top of other Government and community support that they already receive. In terms of flexibility, PM Lee announced that CPF members will have the option to take out part of their CPF savings in a lump sum.

The amount cannot be excessive, for example, up to 20 per cent. It can only be withdrawn during retirement, such as when they are 65 years old and above. However, PM Lee cautioned that members must understand that as a lump sum is taken out, they will have less left in the CPF and their monthly payments will be smaller too.