Review the CPF minimum sum scheme

27 July 2012 (not published)

Editor, Forum Page
Straits Times

A REVIEW OF THE MINIMUM SUM SCHEME

When the CPF Minimum Sum Scheme was introduced about 25 years ago,  it was kept at a 

modest level. Many members were able to take out a meaningful portion of their CPF savings on 

reaching age 55, sum after setting aside the required sum for the future.

Over the years, the minimum sum had increased significantly. Many members are not able to 

take out any CPF savings on reaching age 55. The lower income members looked forward to getting 

some of the savings for a long awaited vacation or to pay off some debts.

When told that the minimum sum is needed to provide for their future, they argued that

their immediate cash needs are more pressing. After all, it is their own 

money and they should be allowed to decide on their priorities.

I suggest that the strong views of these people be considered. Perhaps they should be allowed

to withdraw up to 30% of their accumulated savings on the recommendation of an approved 

financial planner  who  has gone through a financial needs analysis with the applicant.

Tan Kin Lian