Larger CPF nest egg comes with sacrifice
I am sure many welcomed National Trades Union Congress secretary-general Lim Swee Say’s clarification on the statements he had made about the use of one’s Central Provident Fund (CPF) savings (“Quotes taken out of context, says Lim Swee Say”; June 24).
I am sure many welcomed National Trades Union Congress secretary-general Lim Swee Say’s clarification on the statements he had made about the use of one’s Central Provident Fund (CPF) savings (“Quotes taken out of context, says Lim Swee Say”; June 24).
Although well-intentioned, his suggestion to defer the use of CPF savings as much as possible may not be realistic or practical. Singaporeans appreciate that their CPF savings can be used for purposes other than funding retirement. These needs are often fulfilled before we retire. Most of us dip into our CPF savings when we buy a home. Often, this happens in our mid-30s after we have accumulated a decade’s worth of CPF contributions. Without our CPF savings, we would not be able to afford a home.
We would then have to start contributing to our CPF savings from scratch, and this is harder for those whose housing loan instalments nullify monthly contributions. High home prices are not helping the situation.
Given the current policies, a larger CPF nest egg at retirement will come only with sacrifice and at the expense of other priorities in life.