Housewives and contract workers have little savings

CHANGES to the Central Provident Fund will help CPF members retire with more money - but what about those with little or no CPF savings?

Several MPs raised the plight of this group when debating impending changes to the CPF.

For example, housewives, the self-employed, contract workers and odd-job labourers have little or no CPF funds. These groups need extra help from the Government in their old age, said MPs.

Dr Lim Wee Kiak (Sembawang GRC) said some in this group would not be able to afford longevity insurance, which the Government intends to implement.

The plan is for CPF members to set aside a small sum to buy an annuity plan that pays a modest amount when they reach 85, when their CPF savings are likely to have run out.

Dr Lim suggested the Government help co-fund the premiums of people with little or no CPF savings.

Older odd-job workers who did not make regular CPF contributions are another group to be concerned about, said Mr Inderjit Singh (Ang Mo Kio GRC).

Labour MP Halimah Yacob (Jurong GRC) suggested the Government top up housewives' CPF accounts so they can pay for the scheme. 'There are many without the Minimum Sum and women, as we know, live longer than men,' she said. However, she added, she hoped women would not be charged higher premiums.

Dr Ahmad Magad (Pasir Ris-Punggol GRC) suggested giving bonuses to mothers who work part time, so they can top up their CPF.