1)      The Government has been studying possible improvements to the CPF system to better meet our needs. Following extensive review and public consultation, the CPF Advisory Panel has made the following recommendations:

2)      There will be a more flexible CPF system.

  • ·         For those turning 55 in 2016, instead of one CPF Minimum Sum, there will be three different levels of Retirement Sums to choose from.
  • ·         The amount that is set aside in the Retirement Account at 55 will determine the lifelong monthly payout received from 65.

Retirement Sum Options

Monthly payout for life

Basic Retirement sum  (with property[1]) $80,500 $650 – $700
Full retirement sum $161,000 $1.200 – $1,300
Enhanced Retirement Sum $241,500 $1,750 – $1,900
[1] Subject to a pledge/ charge


  • ·         Lump Sum Withdrawal: If you turn 55 after 2013 (members who turned 55 earlier were already able to withdraw more of their savings at 55 under the old rules), there will be the option to withdraw up to 20% of our Retirement Account saving at age 65, inclusive of the $5,000 that you can withdraw at age 55.  However, this means a lower monthly payout after you take out the lump sum.
  • ·         Put more savings in CPF LIFE: There will be the option to top up your CPF savings to the Enhanced Retirement Sum to receive a higher monthly payout.
  • ·         Start payouts later: You can choose to start receiving payouts later, up to age 70, to receive a higher monthly payout.

3)      As such, Singaporeans should consider how much we would need in retirement and ask ourselves how much monthly payout we would like to have. For example:

  • ·         If we want to receive $1,200 for life, we will need to set aside the Full Retirement Sum of $161,000.

4)      Singaporeans should also consider saving more in CPF as it allows us to enjoy a higher interest rate that is guaranteed and risk free. For example:

  • ·         If you have $80,000 at age 55 and leave it in CPF to earn interest, this amount can grow to $124,000 or so by the time you reach 65.

5)      There is also more assurance for CPF members:

  • ·         To help you plan for retirement earlier, your Basic Retirement Sum will be made known to you ahead of time.
  • ·         For members turning 55 between 2017-2020, the Basic Retirement Sum for each year will be increased by 3% from the previous year.

6)      With these enhancements, rather than a one-size-fits-all approach, Singaporeans will now have more options andgreater flexibility to decide what is needed for retirement. This will give greater assurance and peace of mind when preparing for retirement.

For more information, please visit

Promoting the extension of re-employment age till 67 and key points from PM Lee’s speech at NUSS

The following News Highlights covers the two topics:

i)                    Promoting the extension of re-employment age till 67; and

ii)                   Key points from PM Lee’s speech at NUSS



The Public Service Division has announced that from 1 January 2015, eligible public servants can be re-employed after they turn 65, up to the age of 67.  This announcement comes after the Tripartite Committee on Employability of Older Workers (Tricom) recommended promoting the extension of re-employment age to 67 by providing incentive support.


The following are the main details of the re-employment of older workers:


1.       The Government is committed to helping older workers who can and want to continue working do so.


2.       The Tripartite Committee on Employability of Older Workers’ (Tricom) has recommended providing incentives to encourage firms to re-employ their older workers beyond age 65.


a.       The incentives will be announced in Budget 2015, and backdated to 1 Jan 2015.

b.      This will give companies time to adjust before legislation kicks in, in a few years.

3.       From 1 Jan 2015, the Public Service will take the lead to offer re-employment to all eligible officers till age 67.


a.       Currently, public officers are re-employed up to age 65 when they reach the retirement age of 62.

b.      Already, some public agencies have voluntarily re-employed officers beyond age 65, if officers wish to continue working and can continue to contribute to the agency.

For more information on the Tricom recommendations and Advisory on Re-Employment:




Speaking at the National University of Singapore Society (NUSS) Lecture on Friday, 3 October 2014 , Prime Minister Lee Hsien Loong spoke about Singapore’s future as it enters a phase of transition.  The following recaps the key points of the speech by Prime Minister Lee:


1.    We have embarked on our New Way Forward. These are good-hearted and necessary shifts.


c.       More risk-sharing. For example: MediShield Life subsidies

d.      More support for the elderly. For example: Pioneer Generation Package, Silver Support

e.      Keeping pathways upwards open to all. For example: ASPIRE/ SkillsFuture

2.    However, we cannot be all Heart, and no Head. We will need to be hard-headed also.


a.       Because we have to do good-hearted things the right way

b.      Because we have to be good-hearted not only to ourselves, but to our children and grandchildren

i           For example, in CPF, it would be irresponsible to make our children fund our retirement, as some countries have done.

ii         Instead, we spend within our means.

3.    We need growth and prosperity so that we can be good-hearted.


a.       A rich society may not always be happy. But poor societies rarely are.

b.      Growth doesn’t solve all problems, but without it, we will not be able to do many important things for Singaporeans.

i           For example, if we close our doors to all foreign PMEs, companies may not want to come here, and Singaporeans will not have jobs in these companies also.

ii         Instead, we remain open, but make sure that Singaporeans can compete fairly and thrive

4.    We will address Singaporeans’ anxieties where we can, but we must also be honest and clear about what needs to be done.


5.    By striking the right balance, we can be more confident of a brighter future.


Related article on PM Lee’s Speech at NUSS: