The government increased the CPF Minimum Sum by 4.7% and claimed that they wanted to maintain its real value of the CPF Minimum Sum. However, inflation had only grown by 2.4% last year. In addition, since 1997, our real median wages had grown by only 1.9% and the real returns on our CPF is only 0.7%. However, the CPF Minimum Sum had grown by a massive 5.2%, in real terms. This means that not only were Singaporeans able to set aside lesser into the CPF and our CPF monies also grew slower than the growth of CPF Minimum Sum, this means that more and more Singaporeans would not be able to meet the CPF Minimum Sum. The government claimed that 48.7% of CPF members were able to meet the CPF Minimum Sum. However, this is only for active CPF members who were able to meet the Minimum Sum either fully in cash, or partly in cash and partly via a property pledge. Thus, it is estimated that if we include all CPF members who are able to meet the Minimum Sum fully in cash, nearly 90% of Singaporeans wouldnt be able to do so. cc. Roy Ngerng Yi Ling
Posted on: Sat, 07 Jun 2014 13:03:18 +0000