CPF Minimum
Sum – Making it Meaningful
As had been pointed out before, the issue with CPF is not
the increasing CPF Minimum Sum, it is inadequate retirement savings.
The CPF Minimum Sum is an estimation of the amount an
average person would need to meet basic needs after retirement. This amount is revised regularly to take into
account inflation, and maybe changes to life expectancy as well. All very sound.
Instead of just being the amount that the Government will
not allow you to withdraw out of your CPF account at age 55, it should be the
amount that the Government will top up to, for CPF members who fall short. Only then will it be truly meaningful.
With power comes responsibility. Or it should.
The Government is given powers in order for it to carry out
its responsibilities. Those of improving
the lives of the people; of ensuring equal opportunities regardless of
background, wealth or any other personal factors; of righting wrongs; of
moderating market excesses, inefficiencies and downright failures via
regulations; and of income redistribution, amongst others.
In the same manner, in return for implementing a compulsory
saving scheme where control of the funds lies in the hands of the government
rather than the individual, it must be accompanied with the responsibility to
ensure a retirement with dignity for those who put in a reasonable effort to
provide for himself and his family throughout his working life. Power and responsibility must come together
in a package.
A scheme that seeks only to control but gives nothing back earns
you compliance at best, and resentment at worst, never respect.
Singaporeans are not unreasonable. We do not expect the Government to commit
itself to amounts it cannot afford or that is unsustainable over the longer
run. But let the fundamentals be set
right to reflect our values and our commitment to each other, as fellow
Singaporeans, as a nation. We can adjust
numbers when circumstances change, but we cannot adjust trust, respect and bond
as quickly.
