CPF's Focus on Self-Reliance Emphasized by SM Lee

Senior Minister Lee Hsien Loong delivered a speech at the launch of the CPF’s 70th anniversary commemorative book, Save & Sound: 70 Years Of CPF. The CPF’s core philosophy of self-reliance remains crucial, focusing on each generation funding its own retirement needs through individual savings. This approach prevents imposing older generations' retirement needs on younger ones, promoting fairness and personal responsibility.

Unlike countries with tax-based pension systems, Singapore's system encourages later retirement by linking retirement benefits to individual contributions. While self-reliance is effective for most, Singapore provides targeted state support for lower-income workers and non-working individuals. This support includes schemes like the Workfare Income Supplement and the Silver Support Scheme.

The CPF system has evolved over the years, with adjustments to contribution rates, withdrawal age, and the introduction of CPF Life annuities. The Government's goal is to ensure retirement adequacy for all Singaporeans, balancing tough choices and the need for system adaptability.

Public trust in the CPF is high, with many members voluntarily topping up their accounts. The CPF's success lies in its soundness and the benefits it offers to members. While the system is currently in good shape, continuous updates are necessary to cater to new generations of Singaporeans.

Senior Minister Lee emphasized the importance of CPF's role in promoting self-reliance, adaptability, and innovation. Singapore's CPF system is internationally acclaimed for its effectiveness in ensuring retirement security.

According to the source: The Straits Times.