Another poll on CPF. This time it was done by Manulife. 500 online interviews were conducted and I believe that all 500 interviewees were Investors.
|Screenshot from the article published on 14 Aug 2014.|
Findings from the survey:
1. Only 21% of those polled were confident that their CPF savings would sufficiently fund their retirement.
2. 47% felt that their savings would not be enough.
3. 44% felt that the returns were too small.
4. 26% of investors made additional voluntary contributions to their CPF account.
5. 63% of CPF members called for greater flexibility in withdrawing funds.
6. 59% called for more education on retirement planning.
7. 56% wanted government or employer contributions to be raised.
8. 32% actively managed their CPF.
9. 45% of investors would prefer to take a lump sum after leaving the required minimum balance in the CPF Retirement Account once they reach 55.
10. Only 22% choose to buy an additional retirement or pension plan once they free up some of their CPF cash.
CPF 'Enough' or CPF 'Not Enough'?
The result from the poll is from an investor's perspective. There are no details on the level of expertise of these investors interviewed. Nevertheless, it is not surprising the interviewees wanted more flexibility in withdrawing their funds. Everyone wants flexibility.
This poll does not represent the larger population. But I strongly agree that more education on retirement planning is necessary. People must be more proactive, instead of waiting for information to be fed to them. If retirement planning has always been on your mind, what is stopping you from gaining more knowledge and taking the first step? Nothing.
I am not in the stage to know if our current generation (born in the 80s) will have enough savings in our CPF. But I do foresee that we will have a tough time. CPF, at least for me now, is for my mortgage payments. Mortgage payment stretches up to 25 years. If I started paying for my house at 30 years old, I will be 55 years old when I have fully paid for the house. You can only imagine how much savings will there be in the CPF Special Account because, for sure, you would not have much savings in the CPF Ordinary Account.
I will lean towards CPF is not enough to ensure that I will plan for another retirement account that is not restricted by anyone or institute. Planning for a backup. Why not?
Anyway, PM Lee Hsien Loong, in this year's National Day Message, mentioned that the CPF Scheme has been successful for many in ensuring a stable retirement but it can be improved. In the coming National Day Rally, we can expect some of the CPF issues and changes to be addressed. Stay tuned.