Category: CPF & Government Policies

CPF: The Right Balance Between Flexibility versus Sustainability

The National Day Rally addresses more flexibility in retirement.

The Singapore government has the difficult task of finding the right balance between flexibility and sustainability. CPF is a prime example of how the government is trying to allow some individual flexibility, while ensuring that the retirement scheme is sustainable for years to come. The CPF Minimum Sum scheme aims to provide Singaporeans with a monthly income to support a basic standard of living during their retirement. The portion of CPF that exceeds the Minimum Sum can be withdrawn at age 55. Compared to other countries, the CPF is actually quite flexible. Here’s why:


How You Can Feel Better About the Singapore CPF

singapore central provident fund
3 ways to feel better and more secure about your CPF account.

I’ve heard a lot of concerns and complaints recently about the Singapore CPF. It seems that there are three main camps of concerned people. Those who think their CPF is not generating enough returns (they believe CPF is cheating them from earning higher returns, and that they can do better if they invested the money themselves). Those who believe CPF is too restrictive or confusing (they do not like the rules, particularly regarding the Minimum Sum). And those who flat-out think the CPF is operating like a ponzi scheme. Regardless of which camp the concerned citizens belong to, nearly all of them have one thing in common. They want access and full control over their “hard-earned money”. And they want it now. (more…)

How the Singapore CPF compares to US Social Security

CPF may have some issues, but it's nothing like the US Social Security system, and that's a good thing!
CPF may have some issues, but it’s nothing like the US Social Security system, and that’s a good thing!

There have been many articles and blogs lately about the fairness and viability of the Singapore CPF. As a new PR to Singapore, I know that I have much more to learn and understand on this topic; in no way do I claim to be an expert in it. But I am quite familiar with the US Social Security scheme, its current status and future viability. Since one blogger in particular has compared the two retirement schemes, skewing his findings in favor of these western schemes, I would like to shed some light on some of the “heart truths” about the US Social Security system (all backed by references, of course). (more…)