Proposed changes strike a balance, say observers

Singapore

OBSERVERS have welcomed the proposals to offer higher payouts and flexible withdrawal options in Singapore's Central Provident Fund (CPF). On the whole, they said, the proposals strike a balance between maintaining the financial stability of the pension scheme and allowing for more flexibility, while making people more responsible for their choices.

However, some people interviewed by The Business Times wondered whether letting people withdraw up to 20 per cent of retirement account savings at age 65 was a good idea, especially when these savings would otherwise attract an interest rate that is commercially unbeatable.