November 20, 2012

In order to respond to the questions raised recently on whether CPF funds can meet retirement needs, NUS professors of economics Chia Ngee Choon and Albert Tsui proposed a simulation model using ministry wage growth data from the past ten years and listed three conditions for young Singaporeans to build an adequate nest. They stressed that Singaporeans must choose homes based on their income bands to guarantee enough retirement funds. Furthermore, they also claimed that some CPF policies ought to be improved to provide more than basic standard of living amount. However, different people hold divergent opinions about their assumptions. For example, Mr. Seng Han Thong argued that the model paid more attention to new workers instead of present workers.