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Janice Heng
Friday, May 30, 2014

Singapore

Govt looking at ways to boost retirement funding

The Straits Times | Janice Heng | Friday, May 30, 2014

Senior Minister of State for Health and Manpower Amy Khor

SINGAPORE - Improvements to the Central Provident Fund (CPF) scheme could include raising older worker contribution rates further, linking payouts to inflation and finding better ways for the elderly to unlock the value of their flats.

Senior Minister of State for Manpower Amy Khor said these ideas, which have been raised by MPs, will be included.

The assurance came on the second day of debate on the President's Address, amid calls from backbenchers to improve retirement adequacy.

"I acknowledge that it is not a perfect system, and I assure (MPs) that we will continue to review how else we can improve it, taking into account feedback and suggestions," Dr Khor said yesterday.

Earlier, Ms Tin Pei Ling (Marine Parade GRC) had urged "a higher rate of return on our CPF monies", continuing a theme which was raised on Monday by other legislators.

She also wanted more flexibility for the use of CPF money, to let those "in dire straits" address pressing needs, such as their children's education.

This might mean "a higher risk that some Singaporeans will not have enough in their old age", she acknowledged. But those cases are likely to be in the minority, she added.

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