Introduce percentage withdrawal for CPF retirement account balances: NTUC

SINGAPORE — The labour movement is calling on the Government to allow Central Provident Fund (CPF) members to withdraw a lump sum - of at least 20 per cent of the balances - from their retirement accounts, even if they do not meet the Minimum Sum.

Thi is to cater to members with varying balances, said the National Trades Union Congress (NTUC), and should be coupled with financial counselling so they can understand the impact of withdrawing the lump sum, and the trade-off between this withdrawal and the CPF Life monthly payout.

This was one of 15 proposals on improving the CPF system submitted by the NTUC to the CPF Advisory Panel yesterday (Jan 20), following two months of focus group discussions with more than 250 people, including union leaders, rank-and-file workers, freelancers and the self-employed.

Other suggestions included giving members the option of receiving an escalating payout stream. The NTUC also suggested that the Government offer incentives for those who opt for lower initial monthly payouts or draw the monthly payouts at a later age.

The NTUC also reiterated its call for the alignment of total CPF contribution rates between workers aged 50 and above to 55, with workers aged 50 and below. While the gap was narrowed to 2 per cent last year, the NTUC wants it to be fully dissolved. It added that total contribution rates for workers above the age of 55 should be levelled up.