Fact: CPF scheme is a complete failure because the majority of Singaporean members are unable to meet the FRS sum in cash at age 55.
In the written answer by MOM Minister Teo on 10 July, she disclosed that only “about 53% of active members met their Full Retirement Sum in cash and pledge at age 55 in 2016″.
Josephine did not disclose the number of Singaporean CPF members because she wasn’t asked to; PAP MP Gan Thiam Poh had started the wayang by asking “how many Singaporeans and PRs*” instead.
Nevertheless, one is still able to conclude that the CPF scheme has failed by simply scrutinizing the ‘irrelevant’ statistics.
The percentage of Singaporean members who meet the FRS sum in cash at 55 can be estimated.
Active members comprise PRs and Singaporeans. Excluding PRs who form more than 10% of the population in the 50 to 54 age group, ‘53%’ is likely shaved to 43%.
Taking into account low-waged older workers/majority who have used CPF to fund housing, Singaporeans who did not meet the FRS sum in cash in 2016 must have fallen way below 40% of active members.
But that’s not all because this does not take into account inactive members who form about 48% of total members.
With thousands of inactive members, eg housewives who had left the workforce, the percentage of all Singaporean CPF members who met the FRS sum at age 55 is likely to have fallen below 30%!
Whether it’s 30% or 40% does not really matter because this would have confirmed CPF scheme’s failure.
Understandably, PAP will not shoot itself in the foot by disclosing such embarrassing statistics.
* Why should Gan be concerned about PRs when about 14,000 of them leave Singapore permanently every year since 2010?