CPF payouts insufficient for retirement?

I refer to the article ”CPF payouts ‘fall short for higher-income earners’” (Sunday Times, Dec 6).

Lower income better off?

It states that ”Men at the 30th income percentile, however, could achieve a gross replacement rate of 71.3 per cent by annuitising the full amounts in their CPF accounts, Ms Miksa noted.

This suggests that lower-income earners could rely on CPF payouts for retirement income.”

Lower income may be worse off?

As only an estimated 1 in 6 Singaporeans at age 55 were able to meet the full CPF Minimum Sum (currently $161,000) without pledging property – the lower income may be even more financially stretched in retirement.

Low retirement adequacy due low %?

As to ”Singapore scored lowly on retirement income adequacy due to “the lack of a social safety net” and having “one of the highest out-of-pocket healthcare costs in the world”" – to what extent has our very low CPF interest rates (the lowest real returns amongst all national pension funds in the world?) contributed to our low retirement adequacy?

Leong Sze Hian

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