PAP to introduce more meaningless CPF changes, still trying to mask failure of CPF scheme

The PAP government has refused to revamp the failed CPF scheme although it has indirectly acknowledged its failure in “Number of 55-year-olds with Basic Retirement Sum to go up”.

However, the BT article requires some propaganda deconstruction to reveal the shocking state of PAP-created retirement shortfall.

1 40% of CPF members don’t even have $83,000 at 55

Instead of stating the fact that 40% of CPF members don’t even have $83,500 at 55, PAP prefers to tell us that 60% of retirees have only $83,500. Considering the high cost of living in Singapore, having only $83,000 = undignified retirement.

With this amount set aside at 55, the estimated monthly payout from age 65 is about $725. Assuming an annual 2% inflation rate, the monthly payout will be less than $600 in today’s dollar in 10 years’ time. What if they live to 75 or 85 and beyond? Are retirees expected to burden our children, live on rainwater and ‘eat wind’?

BRS/FRS/ERS payout table


After taking into account increases in water prices + public transport fares or healthcare costs + GST + education costs akan datang, many retirees will be needing some workout as cardboard collectors.

PAP must have been too pai seh to disclose this hard truth: 40% of CPF members will have less than $600 monthly CPF payout (in today’s dollar) at 65.

2 How many CPF members don’t have the Full Retirement Sum (FRS)?

The current FRS is $166,000 and the monthly payout is about $1330. Since 40% of CPF members already do not have the BRS, the number with the FRS must be much higher, probable more than 70% of CPF members.

Is PAP so embarrassed by its failure that such statistics are better kept state secret?

Why are ordinary Singaporeans unable to retire in a dignified manner despite PAP tweaking the CPF scheme for 5 decades?

3 Still playing with words to resolve issue?

Instead of taking this issue seriously, PAP has been using the MSM to disseminate propaganda, mostly half-truths. PAP seems pleased with the way CPF scheme has been managed, ie more than 50% of members do not have sufficient savings for retirement.

4 PAP still wayang in Parliament on issue of retirement shortfall

PAP has continued to wayang in Parliament, further compounding the issue. The root cause is a disproportionate amount of RETIREMENT savings – more than 60% of CPF – has been channeled into housing. In addition, about 20% of CPF has to be set aside to fund our personal/family members’ healthcare costs which has made it possible for PAP to shirk its responsibility.

With only about 20% of CPF contributions set aside for retirement during the first 25 years of one’s career, it would take more than a miracle for the CPF scheme to succeed.

5 CPF enhancements = Bullshit

PAP claims CPF scheme has been enhanced but this is all bullshit.

Examples of PAP enhancements are:
1 – Higher CPF ceiling.
2 – Improve ease of transfer of CPF savings to one’s spouse.

How do these so-called enhancements help a member who has little/no CPF balance after purchasing a HDB flat and contributing to Medisave?

3 – Enhanced Retirement Sum.

Doesn’t the Enhanced Retirement Sum only help those who are better off? Doesn’t this channel additional billions into GIC, ie helping GIC? How does it in any way help a majority of CPF members who do not have the BRS/FRS in the first place?

6 More meaningless CPF changes akan datang?

Manpower Minister Lim says MOM will be introducing more changes to the CPFIS. However, CPFIS is only remotely related to the retirement shortfall issue.


PAP is not taking the retirement shortfall issue seriously. If it did, it would have ceased introducing meaningless CPF changes to mask its failure.

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1 Response to PAP to introduce more meaningless CPF changes, still trying to mask failure of CPF scheme

  1. sinkie says:

    This is just more BULLSHIT from PAPies. They think that by calling it Basic Retirement Sum, all sinkies will forget that it is actually just HALF of the old Minimum Sum. What used to be called the Minimum Sum is now called Full Retirement Sum.

    Previously even PAPies and Straits Times had to admit year after year that more than 50% of sinkies cannot meet the Minimum Sum. They must have gotten tired of slapping their own faces. Now they turn around and say more than 50% can meet BRS. Why not pull another Bullshit and come up with Standard Retirement Sum of $100 only??? Like that PAPies can boast 99% of sinkies can meet the SRS and CPF is so damn successful.

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