Review CPF contribution rates for older workers, policymakers urged

To help would-be seniors save better for retirement.

The CPF contribution rates for workers older than 55 years old should be reviewed in the upcoming budget, according to the National Trades Union Congress (NTUC).

In its recommendations for Budget 2016, the Labour Movement noted that a review of contribution rates will allow older workers to save better for retirement, particularly as more workers are staying employed longer.

“In the long term, we hope the Government will regularly review the parity of CPF contributions across the different age bands,” NTUC said.

NTUC also recommended a review of the single retirement age which is currently in place. It said that workers and employers will both benefit from varied retirement ages beyond 62, as it will meet the diversity in capabilities of workers and industry.

“This is to allow workers who are able to stay in employment to do so, should they desire to. In so doing, it will allow workers to better take care of their retirement needs,” NTUC said.

NTUC's recommendations are focused on four key themes, including strengthening the Singaporean core, improving productivity, enhancing training and skills upgrading, and improving retirement adequacy.