Public education crucial to success of CPF revisions, says DBS

Minimum sums and withdrawal options have been tweaked.

Public education is crucial to ensuring the success of recent revisions to the Central Provident Fund (CPF), DBS said in a report today.

According to DBS, emphasis must be placed to ensure that Singaporeans fully appreciate the implications of their decisions in retirement planning, which could be an inter-generation trade-off.

The CPF Advisory Board yesterday published its recommendations on enhancements to the CPF system. The key recommendations of the CPF Advisory Panel are for 3 retirement sums corresponding to 3 lifelong monthly payouts, a 3% increase in the basic retirement sum from 2017-2020 to counter inflation, a choice to withdraw up to 20% from RA at age 65, deferred payout of up to age 70, and top-ups to spouse’s CPF.

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