SINGAPORE — The Government can study ways on providing better options for Central Provident Fund (CPF) members who are able to take higher risks, so that they may earn higher returns compared to the CPF Investment Scheme system, said Deputy Prime Minister Tharman Shanmugaratnam today (July 22).
One option that remains on the table is allowing members to use CPF monies to invest in private pension plans, he added.
However, Mr Tharman, who is also the Minister for Finance, cautioned against such options, saying that it has to be studied carefully and that people have to understand the risks involved.
While higher risk plans should be expected to garner a higher return over the long term, he noted that this could come at a price of waiting long periods without seeing those returns.
Mr Tharman also said the Government will be looking at how to help the older generation of Singaporeans — who are asset rich and cash poor — in getting cash out of their homes.
He was speaking at the closing dialogue session at the Institute of Policy Studies forum on CPF and Retirement Adequacy.