Source: Google map screengrab.

The Manpower Ministry (MOM) defended itself in mainstream media this week (‘Different method used to calculate CPF payout sums: MOM‘, 8 Jul) saying that it uses a different method to calculate the CPF payouts under the national CPF Life Scheme.
MOM’s comments came in light of a recent study conducted by a team of researchers from the Lee Kuan Yew School of Public Policy (LKYPP) at NUS two months ago. The team led by Assistant Professor Ng Kok Hoe found that an elderly Singaporean above 65 years old would need $1,379 a month in order to meet his or her basic needs.
In particular, the team found that the household budgets necessary to meet basic needs were $1,379 per month for single elderly households, $2,351 per month for elderly couples, and $1,721 per month for a person aged 55 to 64 years old. Note that the amounts assume the elderly senior is in good health.
The sums were derived from focus group discussions involving more than 100 participants from diverse backgrounds, and using a consensus-based methodology known as Minimum Income Standards (MIS). Participants generated lists of items and services that were deemed a basic need through a common consensus. Each item or service was only included if participants agreed that it was a basic need, and could explain why it should be included.
These included personal care items as well as leisure and cultural activities, as participants agreed that basic needs go beyond subsistence. Household budgets were then determined from these lists.
Prof Ng said, “Such income standards can help by translating societal values and real experiences into unambiguous and substantive benchmarks that policy can aim for.”
MOM behaves defensively
Instead of welcoming the study done by the LKYPP’s team in order to help chart future policy changes, MOM defended itself explaining that it uses a “different” method in arriving the CPF payout sums – monthly income for those above 65 to survive in Singapore.
Mr Shaun Goh, Director for Retirement Systems at MOM, commented that the study was “useful for personal goal-setting and retirement planning”. However, the methodology used by LKYPP is fundamentally different from the Government’s method of arriving at payout sums under the CPF Life Scheme, he said.
Goh did not say if MOM agrees with the proposed $1,379 as a baseline figure for old age requirement. He said CPF retirement sums and corresponding payouts have been established by examining actual expenditure patterns reflected in the Household Expenditure Survey (HES), which is conducted once every five years.
This was done at the advice of experts from the CPF Advisory Panel, Goh noted. “Individuals’ needs vary, and members should plan for their retirement based on their estimated monthly income required,” he added.
Those who expect to spend more in retirement may also set aside more savings in their CPF, and Singaporeans can supplement their CPF payouts with other income sources such as private savings, and family, community and government support, he said.
Of course, Goh forgot to mention that another income source is for elderly Singaporeans with insufficient CPF payouts to continue to work till they drop dead. Already, Senior Minister of State for Health Amy Khor wants more elderly Singaporeans to continue working in the name of “offsetting” the low birth rates in Singapore.
“This brings opportunities for greater labour force participation at older ages, and is important for a country like Singapore where birth rates are relatively low,” she said at an international conference recently.
CPF BRS’ monthly payout less than $800
Currently, the monthly payout under the Basic Retirement Sum (BRS) corresponds to the average expenditure of retiree households per household member for the 21st to 40th percentile.
For BRS, CPF members would need to pledge their property to CPF Board. For those turning 55 this year, the BRS is $88,000 and the monthly payout from 65 is a mere $700+.

Many elderly can’t even meet the BRS. For example, Lim Koh Leong, 60, whose plight was highlighted on social media recently only has $70,000 in his CPF. He wanted to take $15,000 out to fund his daughter’s education but was rejected by CPF Board. In the end, he sought help from his family members.
So, in Mr Lim’s case, in 5 years’ time when he hit 65, his monthly payout would likely to be less than $700, since he couldn’t even meet the BRS.
Obviously, those who can’t work or are drawing only few hundred dollars of measly CPF payout every month would be forced to lower their monthly expenses considerably.
For example, it was reported in the media last year that housewife Chuang Pek Yah, 62, who lives in a condo in Bukit Timah, resorted to dimming the ceiling lamp to save utility expenses. She was even considering doing laundry every other day instead of daily. Similarly, 46-year-old taxi driver Kent Chia was “extra mindful” of his household expenditure and his family tried hard to “save where [they] can”.
Perhaps Director Goh expects elderly Singaporeans to use public toilets in coffee shops and hawker centers to save on water, soap and toilet paper for their call of nature. For food, perhaps he expects our seniors to eat grass everyday, helping NPark to save on manpower to cut grass at the same time.
 

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
You May Also Like

Statement of condolence from Pink Dot Sg

The Pink Dot Sg Organising Committee has issued a condolence letter to…

LTA to secure short-term accommodation for M’sian public transport workers in SG amid M’sia’s travel restrictions

The authority has worked closely with the public transport operators and the…

李嘉诚:黄台之瓜 何堪再摘

香港陷入长期抗争仍未消停,也引起香港首富李嘉诚关注,并以“一个香港市民”身份,在多家报章刊登广告,呼吁停止暴力。 据当地媒体报导,李嘉诚供刊登两则全版广告,其中一则中间写有被框住的“暴力”,象征反对暴力,而左右两边则写上:爱自由.爱包容.爱法治”,和“爱中国.爱香港.爱自己”。上头写着“最好的因可成最坏的果”,以及下方:“以爱之义,止息怒愤”。 至于另一则广告,则引用唐章怀太子李贤的名作黄台瓜辞,劝谕:“黄台之瓜,何堪再摘”,但未表明是呼吁任何人或组织不要再摘黄瓜。 “年轻人声音震耳欲聋” 李嘉诚发言人表示,刊登广告主要因为他认为香港长期繁荣稳定,系于“一国两制”行稳致远,今日香港要停止暴力,坚守法治,又指时间的长河看不到尽头,人生的路走不回头。 至于为何刊登两则不同广告,发言人则解释基于目前香港局势复杂,难以以单一语言或沟通方法回应,“应以何身得度者,即现何身而为之说法”,但是发言人声明也写道“现时年轻人给政府的声音和讯息震耳欲聋,政府已在绞尽脑汁。” 发言人也指投资青年就是投资未来,所以不会后悔把资源投放在青年身上,但又告诫不要让今天激情成为明天的遗憾。 《黄台瓜辞》全文为“种瓜黄台下,瓜熟子离离。一摘使瓜少,再摘使瓜稀。三摘犹自可,摘绝抱蔓归。” 李贤是武则天的二儿子,曾在兄长死后担任太子,但被武后废为庶人,黄台瓜辞便是感叹母子亲情在权力斗争下的变质,用黄台之瓜比喻唐代宗室,已不堪一再采摘,劝武后不要再对子女赶尽杀绝。但李贤最终仍被逼自杀。 回溯2016年,李嘉诚也同样曾以“黄台之瓜,何堪再摘”回应旺角警民冲突,但当时他未回应谁是损害香港的“摘瓜人”,仅呼吁港人以香港利益为重。 很快有网民诠释,李嘉诚的广告似乎“暗藏玄机”,揣测可能是“藏尾文”,若取每句尾字拼凑,成了“因果由国,容港治己”,以及“义愤民诚”。不过广告要表达的真实意义,恐怕只有李嘉诚本人最清楚。 李嘉诚今年已91岁,今年三月《福布斯》杂志公布全球富豪排名,李嘉诚净资产总值高达317亿美元,全球排名第28位。…

Solutions in the works to address IT control lapses identified in Auditor-General’s report, says Indranee Rajah

“The senior leadership of the public service is accountable and committed to…