The Singapore government hit out at a recent study finding, saying that Singaporeans do not need S$1,379 a month to retire. The CPF Board said the figure is excessive.
A director at the Ministry of Manpower said Singaporeans actually need a lot lower – at around S$800 a month – based on the CPF calculation:
“MOM had established the CPF retirement sums and corresponding payouts by examining actual expenditure patterns reflected in the Household Expenditure Survey (HES). For instance, the monthly payout under the Basic Retirement Sum (BRS) corresponds to the average expenditure of retiree households per household member for the 21st to 40th percentile. This payout is what CPF members get if they can meet half the Full Retirement Sum (FRS), combined with a sufficient property pledge or charge to make up the rest of the full sum. For those turning 55 this year, the BRS is $88,000, and the FRS is $176,000. Those who achieve the FRS will get a monthly payout of $1,350 to $1,450 (while those with BRS is halved at S$675 to S$725).”
The MOM director added that Singaporean elderly should rely on the government and their family to retire: