Debated in Parliament on 16 Feb 2021.
Mr Chua Kheng Wee Louis asked the Minister for Manpower in the last three years, what is the number and percentage of active and inactive CPF members who have met the Basic Retirement Sum (BRS), the Full Retirement Sum (FRS) and Enhanced Retirement Sum (ERS) for those who turned 55 years of age.
Every cohort’s Basic Retirement Sum (BRS) is determined taking into consideration inflation and rising standards of living. Each successive cohort has seen a higher proportion able to set aside their BRS. The proportion of active CPF members turning age 55 who have set aside their BRS continued to improve from 62% in 2018, or about 24,900 members, to 66% in 2020, or about 26,500 members. This reflects higher labour force participation rates and rising incomes of successive cohorts of members.
Of the active members who are able to set aside the BRS, about seven in 10 can choose to set aside the Full Retirement Sum (FRS) and half, the Enhanced Retirement Sum (ERS).
It is not meaningful to draw conclusions from the CPF balances of inactive members. They are likely to have other means of provision which CPF Board has no sight of. Instead, our focus is to help all members with lower balances and lesser means boost their retirement income. Through the Silver Support scheme, we provide tax-funded payments to seniors who had low incomes during their working years and have less family support in their retirement. Last year, I announced enhancements to Silver Support, which expanded coverage from 150,000 to 250,000 seniors aged 65 and above. Seniors who continue to work and are eligible for Workfare Income Supplement get higher payouts compared to younger recipient. We also incentivise CPF cash top-ups, including through the Matched Retirement Savings Scheme that was launched in 2021.
The Government will continue to review its policies to improve the retirement adequacy of Singaporeans.
PAPERCUTS