Committee of Supply 2023 debate, Day 4: Saktiandi Supaat on retirement adequacy
Rising prices threaten retirees’ ability to meet growing expenses when they no longer have rising wages to count on. Making the point in Parliament on Wednesday (Mar 1), MP Saktiandi Supaat asked if the CPF minimum retirement sum should build in a buffer for future unexpected events such as dramatic price increases. Is it time to adjust the allocation ratio, he asked, to put more into the Special Account instead of the Ordinary and MediSave accounts? As market interest rates cross four per cent this year, he asked if interest rates on CPF accounts will be revised. The CPF Life Escalating Plan, which increases payouts by two per cent annually, may also need to be tweaked given the changing longer-term equilibrium inflation outlook, he said. Mr Saktiandi expressed concern for self-employed individuals and homemakers who do not have the minimum retirement sum. He asked if the number of retiree households with limited ability to cope with expenditure shocks or who never accumulated much savings has been on the rise.
Rising prices threaten retirees’ ability to meet growing expenses when they no longer have rising wages to count on. Making the point in Parliament on Wednesday (Mar 1), MP Saktiandi Supaat asked if the CPF minimum retirement sum should build in a buffer for future unexpected events such as dramatic price increases. Is it time to adjust the allocation ratio, he asked, to put more into the Special Account instead of the Ordinary and MediSave accounts? As market interest rates cross four per cent this year, he asked if interest rates on CPF accounts will be revised. The CPF Life Escalating Plan, which increases payouts by two per cent annually, may also need to be tweaked given the changing longer-term equilibrium inflation outlook, he said. Mr Saktiandi expressed concern for self-employed individuals and homemakers who do not have the minimum retirement sum. He asked if the number of retiree households with limited ability to cope with expenditure shocks or who never accumulated much savings has been on the rise.
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