The common man’s Top 10 CPF wishes…

The CPF Advisory Panel will be making their recommendations to the Government in a couple of days. But before they do, here’s 10 things we hope to see:

  1. Do away with minimum sum, or at least a more comfortable level of minimum sum.

Singaporeans have different needs and priorities. Having a comfortable level of minimum sum or none at all will help Singaporeans, especially lower-income groups.

  1. Have incentives to encourage people to want to keep money in CPF rather than strict enforcement.

To incentivise people to keep their money with CPF, perhaps the Government can introduce more grants and subsidies to help with buying a house, planning for families, etc.

  1. Allow options to borrow against CPF for life events (eg. Weddings, funeral, job losses etc).

To encourage Singaporeans to get married and have children, Singaporeans should be allowed to borrow against CPF for life events in view of the huge expenses required.

  1. Allow options for unlimited CPF topup (because of the interest).

The CPF Ordinary Account pays 2.5% yearly while the Special Account pays 4%. These interest rates are far better than any banks in Singapore. Hence, to allow Singaporeans to better plan for retirement and reap benefits from the CPF interest rates, Singaporeans should be allowed to topup into their own CPF accounts.

What’s more, making annual top ups into your parents’ or grandparents’ CPF accounts gives you the benefit of enjoying tax relief.

old workers

  1. Raise older worker’s CPF contribution so that it is on par with younger workers.

CPF contribution rates decrease as the worker’s age band increases. In order to help workers have more for retirement, older workers’ CPF contribution rates should be raised to be on par with younger workers.

  1. Simplification of CPF rules. (Today you need a diploma in CPF to understand how it works).

Go figure…


  1.  National Service and interns should enjoy CPF contributions too.

Aren’t they also in a way exchanging their time for money? And on that note, shouldn’t they be subject to the Progressive Wage too?

  1. Allow for options to contribution rate (whether or not you want 20%, 15% or 10%).]

Workers could be given the option to choose various contribution rates in order to suit the different life stages that they are in.

  1. Broaden Medisave usage: for example medical tests, outpatient and more diseases.

If you go for medical tests today, some of it is not covered by Medisave. Why can’t some of the limit for use to be broadened to include these tests and outpatient treatment?

  1. Have better projection on the minimum sum, instead of increasing it every year. 

They said that the increases to minimum sum would end next year…but would it really?





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