PALANIAPPAN MUTHUKUMAR: CPF BOARD IS INFLEXIBLE

Leeway in funding Retirement Account

WHEN a Central Provident Fund (CPF) member turns 55, a Retirement Account will be set up for him using funds from his Ordinary and Special accounts, to make up the minimum sum.

Funds from the Special Account will be used first, and if these are not sufficient, then the Ordinary Account will be tapped.

The CPF Board should allow more flexibility and options in funding the Retirement Account.

For instance, if the member is able to fund the Retirement Account fully using his Ordinary Account or with a cash top-up, he should be allowed to continue earning higher interest on his Special Account.

The extra savings can further grow his retirement nest egg.

Palaniappan Muthukumar

Check Also

Netizens: Do not let vaccination status divide us!

There is a new petition going around asking that the government does not divide us …