SINGAPORE: Just one in five Singaporeans are confident
their Central Provident Fund (CPF) savings will meet their retirement
needs, according to a survey released by Manulife on Wednesday (Aug 13).
According to the quarterly survey, conducted online with 500 respondents, 47 per cent thought their CPF savings would not be enough to cover their retirement expenses, and 44 per cent felt the returns were too low.
Nearly two-thirds (63 per cent) of respondents felt there should be greater flexibility in the withdrawal of their CPF savings, while 56 per cent said CPF contributions from employers and the Government should be raised.
Just 32 per cent of respondents said they actively managed their CPF – meaning that they review and, if needed, rebalance their portfolio at least once every six months – and only 18 per cent were satisfied with the range of investment choices currently available for CPF funds. A total of 59 per cent felt there should be more education on retirement planning.
About 45 per cent of respondents said they would withdraw a lump sum from their CPF savings at age 55 after leaving the required Minimum Sum. Averaged out, those that preferred to withdraw a lump sum would deposit 30 per cent into a bank account, use 18 per cent to invest in stocks, bonds or mutual funds, set aside 11 per cent for travelling and 10 per cent to buy property. The remainder would be used for other purposes, such as to pass on to their children or buy an annuity.
According to the quarterly survey, conducted online with 500 respondents, 47 per cent thought their CPF savings would not be enough to cover their retirement expenses, and 44 per cent felt the returns were too low.
Nearly two-thirds (63 per cent) of respondents felt there should be greater flexibility in the withdrawal of their CPF savings, while 56 per cent said CPF contributions from employers and the Government should be raised.
Just 32 per cent of respondents said they actively managed their CPF – meaning that they review and, if needed, rebalance their portfolio at least once every six months – and only 18 per cent were satisfied with the range of investment choices currently available for CPF funds. A total of 59 per cent felt there should be more education on retirement planning.
About 45 per cent of respondents said they would withdraw a lump sum from their CPF savings at age 55 after leaving the required Minimum Sum. Averaged out, those that preferred to withdraw a lump sum would deposit 30 per cent into a bank account, use 18 per cent to invest in stocks, bonds or mutual funds, set aside 11 per cent for travelling and 10 per cent to buy property. The remainder would be used for other purposes, such as to pass on to their children or buy an annuity.
- CNA/cy
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I just wonder: If a person can set aside the Minimum Sum, and still can use 10 percent of the withdrawn sum to buy property, they must be having very, very high amount of CPF savings.
ReplyDeletePresent class of uncles and aunties who didn't take the home upgrading path should have enough in their CPF account as they should have bought their first home less than 6 digit number.
DeleteBetter way is to downgrade from 5-room all the way to eventually a studio. This is one way to use your asset for cash flow. Of course this means you do not have to leave a house behind for anyone.
ReplyDeleteNvm lah....don't leave anything for anyone. Ppl wld not work hard if they know they wld get something for free.
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ReplyDeleteIt may be true for some people but not all of us are born equal.
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