The PAP Seniors Group, led by chairman Tan Chuan-Jin, is proposing the raising of CPF contribution rates for seniors who are above the age of 55.
In its 21-page position paper, which will be submitted to the government, the group said that self-reliance can be achieved through a “combination of mandatory and voluntary CPF contributions as well as sound financial planning”.
Said the group at a press conference today:
“With longer life expectancy and a smaller base of family support, Singaporeans need to be even more self-reliant in securing a stream of lifelong income for retirement.”
A motion on the matters raised in the PAP’s paper will be tabled at the next parliament sitting on 11 Feb.
Currently, the CPF contribution rate for those age 55 and below is 37 percent.
Out of this, 17 percent comes from employers and 20 percent from members.
The contribution rate for workers above 50 years old to 60 is 26 percent – with employers contributing 13 percent and members contributing 13 percent.
The contribution rate for workers above 60 years old to 65 is 16.5 percent – with employers contributing 9 percent and members contributing 7.5 percent.
Those above the age of 65 see a contribution rate of 12.5 percent – with employers contributing 7.5 percent and members contributing 5 percent.