Sensible to have more than one key to unlock CPF savings

I refer to last week’s Talking Point, “CPF: More choice, better security?”

A taxi driver once complained to me that he could not withdraw his Central Provident Fund savings despite being above 60 years old. “The money’s mine,” he said. “Why doesn’t the Government allow me to use my own money?”

For many of those who need money for their daily life, the issue has become an emotional one. To explain the whys and wherefores of CPF policies is not easy, even for a CPF officer.

There are three keys in the CPF logo, which represent “the unity of the tripartite relationship among employees, employers and the Government” and which could perhaps explain why withdrawing one’s CPF savings has become complicated.

A CPF member holds the first key, but cannot unlock his savings without the key held by the CPF Board, for buying a home and for investments, medical expenses, insurance schemes or children’s education.

When he reaches 55 years old, he must fulfil the Minimum Sum requirements before he can withdraw any excess savings.

Perhaps, those who top up the CPF accounts of their loved ones should also be empowered as stakeholders and a key holder, to ensure the savings of their loved ones are not withdrawn prematurely.

It is sensible to have this multiple-keys mechanism. As members have diverse needs and financial situations, striking a good balance between self-determination and government interference in the CPF system is a delicate task.

More flexibility could be installed, but there are limits to it, beyond which the objective and integrity of the CPF scheme would be compromised.