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26 Feb 2019  (760 Views) 
Central Provident Fund

CPF policies should be simple and logical
I totally agree with Dr Ho Ting Fei's suggestions (Make full CPF payout by age 70, Feb 23).

The Central Provident Fund's (CPF) rules and policies should be simple and logical, instead of being complicated, confusing and potentially contentious.

If savings can be withdrawn from the Ordinary Account at the age of 55, then the same spirit should apply for the Retirement Sum, in that members should be able to withdraw it at the retirement age of 62.

What is the rationale for starting payouts at the ages of 65 to 70, when the minimum retirement age is 62?

And even if we were to accept that payouts must be made monthly even after the age of 70, we cannot assume that everyone will live beyond 90. Those that do are outliers, even with improved medical technology.

Instead, look at the average lifespan, and compute monthly payouts up to that age, with the balance able to be withdrawn at the age of 70.

Those who prefer to keep their savings in their CPF due to the interest rate can do so by opting in.

Ultimately, CPF savings belong to the members, and they should have more say in how they can be used.

Lawrence Loh Kiah Muan


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