CPF system is fair and sustainable

THE strength of the Central Provident Fund (CPF) system lies in the fact that it is both financially sustainable and progressive, a "rarity" in the world when it comes to a country's retirement savings scheme.

While admitting that Singapore's social security system may not be perfect, Finance Minister Tharman Shanmugaratnam hailed it as one that is fair and sustainable to its members.

"It takes risk away from individuals who cannot bear that risk. It's not a perfect system, but it is working quite well and is internationally recognised by experts as one of the better systems around," he told parliament on Thursday, the third and final day of the Budget debate.