Blue collar workers got more than 200K in their CPF meh?

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An honorable member of the Coffee Shop Has Just Posted the Following:

With the Min Sum, like that they owe the Garmen monies because they need to top up their CPF!

The Poor Suffers Man!! Million dollars Salarymen all go crazy leow! Got warped Minds!!

CPF TWEAKS: MINIMUM SUM UP TO $161,000 NEXT YEAR, OPTION FOR SMALL LUMP SUM WITHDRAWAL


Post date:
18 Aug 2014 - 8:09pm


The CPF minimum sum will be raised to $161,000 for those who turn 55 after the 1st of July next year, a jump of $6000 from the current $155,000. However, after next year, the rate of increase in Minimum sum is likely to be slower.

This is one of the announcements that PM Lee made during his National Day Rally speech yesterday evening. He also said that they would be making some other tweaks including introducing a bit more flexibility in the withdrawal of CPF after reaching 65.

PM Lee said that the Ministry of Manpower (MOM) is forming a review panel to look into making changes to the CPF system but he also explained some brief details about some tweaks at the Rally.

In terms of allowing more flexibility in CPF withdrawals, PM Lee indicated that they may allow small lump sum withdrawals of CPF to allow retirees to access funds for one-off, immediate costs.

He said that the lump sum would need to be limited to say, 20% of the total savings and CPF members would have to be made aware that such withdrawals will affect their monthly payments in the future.

Currently, CPF members can only get access to monthly payouts from their CPF savings once reaching the drawdown age set for their cohort. However, this system may not be suitable for cash-strapped elderly who may be facing large immediate medical costs or those who may want to go on a long holiday while their bodies are still healthy.

PM Lee said that this would be one of the tweaks that the MOM review panel will look into and release details for in the future.


Another major tweak announced by PM Lee was that the government will introduce a new yearly bonus scheme for poor retirees. The scheme, called the Silver Support Scheme, will see poor elderly receiving government payouts each year to help them with their daily expenses.

PM Lee acknowledged that low-income Singaporeans are unlikely to have enough savings in their CPF to be able to support themselves in their retirement and he said that sometimes, these seniors do not even have family to support them. For them, the "Good" CPPF system is not sufficient and so he wanted to help with out with the new scheme

Mr Lee explained that more details about these payouts will be announced in next year's budget.

Also in his National Day Rally speech, PM Lee highlighted some of the current policies that not everyone knows about such as the fact that only half the Minimum sum needs to be saved in cash. Residents can pledge their properties to satisfy the other half.

He also explained the various ways in which residents can monetize their flats such as through lease buy back for smaller flats, through renting out rooms or down-sizing. Giving such examples, PM Lee explained how retirees can be self sufficient, emphasising that the government shouldn't need to help most Singaporeans retire.


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