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Singapore

CPF contributions at appropriate levels for younger S'poreans

Current CPF contribution rates and returns are broadly appropriate for most of the younger generation of Singaporeans, according to Senior Parliamentary Secretary for Manpower Hawazi Daipi.

CPF contributions at appropriate levels for younger S'poreans

Mr Hawazi Daipi.

SINGAPORE: Current CPF contribution rates and returns are broadly appropriate for most of the younger generation of Singaporeans, according to Senior Parliamentary Secretary for Manpower Hawazi Daipi.

Mr Hawazi was responding to Nominated MP Mary Liew's question on the adequacy of CPF savings of young workers, especially those in the lower and middle income groups.

Mr Hawazi said amongst those starting work today, it is projected that about 70 to 80 per cent should be able to attain the current level set for the Minimum Sum in cash, adjusted for inflation by the time they retire.

This is after the withdrawal of CPF savings to buy a home.

But Mr Hawazi said there will be a small segment which will not be able to save up enough for retirement, and the government will help them through other means beyond the CPF.

"For the minority amongst the younger generation of Singaporeans, who are unable to meet the minimum sum in cash when they retire, their CPF balances would have been boosted through the WIS, the Workfare Income Supplement, and the CPF would still have helped them own a home," Mr Hawazi said.

"They therefore have the option to monetise the value of their homes to supplement their retirement income if they find their CPF savings and other resources insufficient."

Source: CNA/wm

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