Singapore's CPF System: Self-Reliance Principle Still Relevant, Says SM Lee

As Singaporeans live longer, the Central Provident Fund’s (CPF) philosophy of self-reliance remains important, said Senior Minister Lee Hsien Loong. He mentioned that while the CPF system is not perfect, Singaporeans are generally in a good state. With changing needs and longer life expectancies, the government will update the CPF scheme to stay relevant for new generations. This continuous evolution is necessary for many public policy issues, including CPF, housing, healthcare, education, and security.

SM Lee spoke at the launch of a book by CPF to celebrate its 70th anniversary at Our Tampines Hub. The event also included the introduction of a new financial guidance platform called Plan Life Ahead, Now! (PLAN), offering personalized financial planners for members.

In Singapore, each generation funds its own retirement needs. While self-reliance works for most, the government supports lower-income workers and non-working individuals through schemes like Workfare Income Supplement, Silver Support, and tax incentives for voluntary CPF contributions. The government ensures intergenerational equity through packages for different generations and periodic top-ups.

Reflecting on the past 70 years of CPF, SM Lee highlighted tough decisions made to adjust CPF rules and schemes. The total contribution rate was reduced to 37% in 2015 after various adjustments due to economic challenges. SM Lee emphasized the importance of saving more, spending less, or working longer for retirement adequacy.

He mentioned that the CPF system changes must be carefully considered to maintain public trust. Today, there is high trust in CPF, with members faithfully making contributions and voluntarily topping up accounts. The CPF system's stability and benefits are crucial for Singaporeans.

The new book, Save & Sound: 70 Years of CPF, documents CPF's evolution and can be downloaded from CPF’s website. The launch of PLAN aims to provide members with financial guidance through a personalized dashboard and educational resources.

CPF will host CPF70 and Life’s Supermarket exhibitions at Our Tampines Hub until Jul 10, featuring PLAN demonstrations and CPF Talk series covering housing, healthcare, and retirement.