Help seniors make informed CPF decisions

PRIME Minister Lee Hsien Loong, in his National Day Rally address on Sunday, gave what a number of Singaporeans seem to want: the ability to withdraw more money from their Central Provident Fund (CPF) accounts. As part of the move to introduce more flexibility into the system, he announced that the government would allow those aged 65 and above to take out a portion of their CPF savings in a lump sum.

He stressed that it wasn't a decision that was taken lightly, and rightly so. Those who choose to exercise this option will have to cope with less in their accounts for their retirement needs, at a time when more people are expected to live longer and the cost of living is going up.

While people should have a right to access their CPF savings, which is their own money, they should at least be given some help in making an informed decision. The CPF Board and other relevant stakeholders could perhaps ensure that members, especially those who are not financially savvy, get all the necessary information and counselling well in advance of making big withdrawals. Ultimately, of course, the final decision rests on the CPF members themselves and how they would like to utilise their money, be it to go on a vacation, fulfil some other lifelong dream or pay for a family emergency, although one hopes that they would use it wisely and not squander it away.