Hike To Bost CPF Savings

A good new for all employees, it has been announced on May Day rally for the partial restoration of employer CPF contribution. Although it may not be a great amount, but it will definitely be a significant impact on our retirement.



The partial restoration of employers' Central Provident Fund (CPF) contributions will be channelled into the Medisave and Special Accounts to provide for Singaporeans' retirement and medical needs.

This is in the light of rising health-care costs and an ageing population profile.

Explaining the move at the May Day Rally yesterday, Prime Minister Lee Hsien Loong said such challenges made it important to build up the two portions of CPF savings, rather than the Ordinary Account.

'Health-care costs are rising over time, and we are living longer. Many of us will be old for longer, and our medical costs will go up, our expenses will rise and we need to provide not just for elder care but for long-term disability. These are all heavy burdens,' Mr Lee said.

Also, the Government believes the Ordinary Account - 23 per cent of a member's monthly wages if he is 35 years and below - is currently sufficient to meet the housing needs of Singaporeans.

So there was no need to tweak it. National Development Minister Mah Bow Tan had illustrated this, Mr Lee noted.

Article - courtesy of straittimes