Singapore still mulling design of possible CPF retirement investment scheme: PM Wong

businesstimes02-06

SINGAPORE is still studying the idea of a Central Provident Fund (CPF) retirement investment scheme, to see if such a scheme can be designed to provide certainty of greater returns while minimising ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2509275724?lang=en_US&edition=full_marsco","thumbnail":"","is_english":true,"pubTime":"2025-02-07 04:13","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2509275724","market":"sg","top_or_hot":-1,"title":"Singapore still mulling design of possible CPF retirement investment scheme: PM Wong","media":"businesstimes","content":"<div>\n<p>SINGAPORE is still studying the idea of a Central Provident Fund (CPF) retirement investment scheme, to see if such a scheme can be designed to provide certainty of greater returns while minimising ...</p>\n\n<a href=\"https://www.businesstimes.com.sg/singapore/singapore-still-mulling-design-possible-cpf-retirement-investment-scheme-pm-wong\">Source Link</a>\n\n</div>\n","source":"bustime_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Singapore still mulling design of possible CPF retirement investment scheme: PM Wong</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSingapore still mulling design of possible CPF retirement investment scheme: PM Wong\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-02-07 04:13 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.businesstimes.com.sg/singapore/singapore-still-mulling-design-possible-cpf-retirement-investment-scheme-pm-wong><strong>businesstimes</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SINGAPORE is still studying the idea of a Central Provident Fund (CPF) retirement investment scheme, to see if such a scheme can be designed to provide certainty of greater returns while minimising ...</p>\n\n<a href=\"https://www.businesstimes.com.sg/singapore/singapore-still-mulling-design-possible-cpf-retirement-investment-scheme-pm-wong\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CPF","symbol_name":"中央太平洋银行","start_time":0,"source_url":"https://www.businesstimes.com.sg/singapore/singapore-still-mulling-design-possible-cpf-retirement-investment-scheme-pm-wong","article_id":"2509275724","we_media_id":null,"thumbnails":[],"rights":{"source":"bustime_highlight","url":"https://www.businesstimes.com.sg/singapore/singapore-still-mulling-design-possible-cpf-retirement-investment-scheme-pm-wong","rn_cache_url":null,"customStyle":"","selectors":"body","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2509275724","pubTimestamp":1738872808,"columns":[],"sourceInfo":{"source_id":"bustime_highlight","name":"The Business Times"},"weMediaInfo":null,"summary":"He addressed this and other issues in a wide-ranging interview on retirement adequacy","collect":0,"end_time":0,"defaultTopTitle":"businesstimes.com.sg","property":[],"viewcount":null,"language":"en","relate_stocks":{"CPF":"中央太平洋银行","BK4211":"区域性银行"},"translate_title":"黄总理：新加坡仍在考虑可能的中央公积金退休投资计划的设计","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CPF":1},"content_text":"SINGAPORE is still studying the idea of a Central Provident Fund (CPF) retirement investment scheme, to see if such a scheme can be designed to provide certainty of greater returns while minimising risk, said Prime Minister Lawrence Wong.\rAny such scheme, which would be opt-in, must allow Singaporeans to not just choose stocks, but also invest in a “properly managed” fund, he said in an interview released on Feb 7.Said PM Wong: “The challenge is – can such a fund produce returns that are better than the very generous, risk-free, guaranteed returns that the government already provides?”“And will it still have some volatility, which will expose CPF members to financial market risk, especially when they retire?”The government considered such a scheme “some years back” and is still studying whether there are design features that could allow for such a low risk, high return product, said PM Wong, who is also Minister for Finance.In a wide-ranging interview on retirement adequacy with Chinese daily Lianhe Zaobao, PM Wong also addressed issues such as support for vulnerable groups; how to balance the use of CPF to finance housing and retirement savings; and Singaporeans’ wish for more control over CPF monies.Start and end each day with the latest news stories and analyses delivered straight to your inbox.One major challenge is that people are living longer, raising concerns about insufficient retirement funds.Singapore tackles this on two fronts, said PM Wong. First, Singapoeans must be prepared to work for longer. Second, retirement savings must be made to last throughout one’s lifetime, no matter how long this is – which is why the CPF Life annuity was implemented, he added.Greater longevity was also raised in separate interviews that Zaobao had with Minister for Manpower Tan See Leng and Tan Chorh Chuan, permanent secretary of the National Research Foundation and chairman of the CPF Advisory Panel.As Singaporeans live “much longer lives compared to any other period before”, mindsets must shift with the times, said Dr Tan.“If you look at the broad overview of what we are doing in the Forward Singapore construct, our assurance to every one of our Singaporeans is that as long as you work and you contribute consistently to CPF, we will do our best to ensure that your finances in retirement will be adequate.”CPF contribution rates have been tweaked over the years in response to economic conditions, he noted. But what remains consistent is the aiming of continuing to raise contribution rates for senior workers, while being “very conscious and mindful of the sustainability of the business”.The issue of raising contribution rates is “a constant dialogue” with tripartite partners, he added.Also constantly under review are the healthcare-related aspects of CPF, with healthcare costs being expected to rise as society ages.Said Dr Tan: “I think that is why the MediSave claim limits, MediShield Life premiums and so on will continue to be updated, will continue to be reviewed.”With advances in medicine, it is impossible to say for sure that costs will rise, he noted. But the government is working with players such as insurance companies and hospitals to manage “the gradient of rise”.Another issue, flagged by the permanent secretary, is that people tend to underestimate their life expectancy.This is the case not just internationally, but also in focus groups discussions held by the CPF Advisory Panel, said Prof Tan. Many participants did not plan much financially for retirement – and if they did, most “significantly underestimated” their life expectancy.“If you don’t provide for the length of time you’re going to be in retirement, which is getting longer because all of us are living longer, then you will not have enough savings,” he cautioned. “So this whole idea of understanding of our longer lifespan, it’s very critical for retirement planning.”The question of how much needs to be set aside is addressed by the concepts of the Basic Retirement Sum (BRS), Full Retirement Sum and Enhanced Retirement Sum.Asked if these would be reviewed, in view of high inflation in recent years, Prof Tan noted that one recommendation in a 2015 review was for the BRS to rise by 3 per cent every year, for five years.But he added: “I expect that there would have to be periodic reviews to adjust what the rate of increase of BRS would be.”","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.32.1","shortVersion":"4.32.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2509275724"}