The minimum sum to be kept by the CPF will increase from $123k to $131k this July. This is based on a person reaching the age of 55 and a retirement income when he hits 65 for life?
1. At 55, the person only has his CPF minimum sum to live on.
2. He has no family support or filial children to give him pocket money.
3. He stops work at 55.
4. He needs a certain amount to live on as prescribed by the minimum sum.
5. He lives to 80 or 90.
How many of the assumptions are true? What about those with their own savings, flats and children to look after them? What about those who continue to work to 65, 70 or older? Do they still need the magical $131k that will balloon every few years? Do they need $100k or more when they are already in their 70s or 80s? How much do they really need when all they want to do is to stay at home and watch TV? How many of them will live past 60 or 70?
Should not the minimum sum be graduated downwards when a person is economically active, with family support, with savings and properties to live on? Why is this straight jacket sum be imposed unilaterally on everyone? How many people who live past 70 need public assistance and can the govt afford to give them 3 meals in a public nursing home?