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Prepare for retirement ‘by using less CPF money when young’

SINGAPORE — The best way for Singaporeans to prepare for retirement is to use less of their Central Provident Fund (CPF) money when they are young. Mr Lim Swee Say, Minister in the Prime Minister’s Office, said this will ensure the current level of CPF payout can be maintained over time and not be eroded by inflation.

SINGAPORE — The best way for Singaporeans to prepare for retirement is to use less of their Central Provident Fund (CPF) money when they are young. Mr Lim Swee Say, Minister in the Prime Minister’s Office, said this will ensure the current level of CPF payout can be maintained over time and not be eroded by inflation.

Mr Lim, who is also the labour chief, made that point when speaking to reporters on the sidelines of the closing of the Singapore Model Parliament yesterday.

At the event, Mr Lim shared his experience with students when he was a Member of Parliament (MP) debating policies at the old Parliament House. One policy that has received much attention recently is the CPF.

Mr Lim said the labour movement has been watching the debate closely and wants to ensure there is no confusion about the issue. “Everyone must remember ... First, CPF is your money, nobody can take that money away from you. You have your money, you have the account and you receive the account statement on a regular basis. So, you know how much money you have in the CPF,” he said. He added that the CPF money is 100 per cent safe and is protected against events such as the global financial crisis.

One important objective of the CPF is to cater for retirement. “Instead of thinking about whether you can spend your savings in the CPF at the age of 55, I think we should think about how we (can) help Singaporeans continue to remain employed, earn a good living, continue to have good jobs and, at the same time, continue to contribute to the CPF because the more money they have in CPF, the longer they defer the use of the CPF — this will mean they will have more for retirement.”

The Singapore Model Parliament provides students with a platform to undertake parliamentary roles and debate national issues. About 100 students have taken on different roles as MPs debating national issues over the past three days.

Said participant Kwek Jia Hao, who received the Best Ruling Party MP award in the event: “The key challenge is to persuade the Opposition on the rationale and objective of policymaking, that we want the beneficiaries of policymaking to be Singaporeans.”

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