Covid-19 crisis Allow withdrawal from CPF
I support a change in policy to allow members to withdraw from their CPF savings to cover a drop of income due to unemployment or reduced working hours.

CPF should allow the member to submit a standing order for the monthly withdrawal.

This is how it can work. 

a) The member will submit a request
b) The monthly sum will be computed based on x% of the average monthly earning over the past one or two years
c) After approval, CPF will transfer each month the difference between the approved sum and the actual earning for the month
d) The transfer can be made into the bank account of the member.
e) This approval will last for 12 months. After that, a new approval has to be made.
f) If the member's saving in CPF has run out, the member is allowed to continue the withdrawal by "borrowing the money from CPF". A negative balance will be build up.

This withdrawal will deplete the member's saving that is needed for retirement. While this may cause problems to be member after reaching retirement age, it will be a future problem. 

For people with inadequate saving for retirement, they should be allowed to continue working (if they are still able bodied). 

The solution is to provide part time work (say 4 hours a day) for older people that are not strenuous and that provide an income for them to live on.

Do you like this concept?

Tan Kin Lian

 

Add Comment

---