Oral Answer by Minister for Manpower Mr Tan See Leng to PQ on CPF Life
NOTICE PAPER NO. 513 OF 2021 FOR THE SITTING ON OR AFTER 8 JULY 2021 QUESTION NO. 1356 FOR ORAL ANSWER
MP: Ms Foo Mee Har
To ask the Minister for Manpower with increasing number of Singaporeans in PMET jobs, whether CPF Life will be updated to allow the option for more voluntary savings under the CPF scheme to provide for retirement payouts closer to PMETs' pre-retirement income.
1. Singaporeans already have many options to plan for higher retirement payouts. Within the CPF system, members who wish to have higher CPF LIFE payouts can set aside an Enhanced Retirement Sum, which is triple of the Basic Retirement Sum. The prevailing Enhanced Retirement Sum is currently $279,000. The Enhanced Retirement Sum is revised annually, together with the Basic and Full Retirement Sums.
2. Members who wish to boost their retirement income further can choose to defer the start of their payouts till age 70. A member who does not start payouts at age 65, but defers to age 70 can increase their retirement income by up to 35%.
3. Apart from the CPF system, Singaporeans can also save more during their working years, by making voluntary contributions to the Supplementary Retirement Scheme or SRS. The savings in the SRS plus any investment gains can be used to purchase private annuity plans, which can further supplement CPF LIFE payouts.