The Government has called for a review of the CPF Minimum Sum Scheme and says that it is willing to be more flexible on the matter including allowing a different Minimum Sum for different groups of people.$CUT$
This is the clearest sign yet that the PAP is worried about the backlash that has developed to its move to withhold the people’s hard-earned savings.
To be absolutely clear, however, such a measure will only confuse and complicate the CPF issue. In the end, the Government will still withhold the much-needed savings and leave retirees insufficient income to live on.
The SDP stands firm and unambiguous on this matter as we have for the last 20 years: Abolish, not amend, the Minimum Sum Scheme and return to retirees all their money.
The Government is under pressure to keep its promise and return Singaporeans their CPF savings. It is now trying to bargain with the people how much it can retain with this latest announcement to make the Minimum Sum more “flexible”.
The PAP says that the Minimum Sum Scheme is needed to prevent retirees from squandering their savings. Such an argument is dubious at best. There will always be the few who do not know how to spend their money wisely. The vast majority are, however, financially prudent, and they should not be penalised by having their retirement savings withheld.
Such a policy is not only unfair and unintelligent but also immoral. Retirees need their retirement savings for various purposes like investing in a business, helping to pay for their children’s education or simply to survive on in expensive Singapore.
Singaporeans have taken to the Internet to clearly and loudly indicate their rejection of the Minimum Sum Scheme and the PAP, with one eye on the next general elections, is beginning to wobble. Hence, its recent announcement to introduce “flexibility” into the scheme.
The SDP reiterates our stand on this issue: The Government must return the CPF money to the people in full after retirement.
We will keep up the pressure on the PAP to honour it’s obligation and we will not stop until the Government heeds the people’s voice.