I tuned in to PM Lee’s speech around the time he was sharing about the #fishballstick incident and I found that case study pretty amusing. I thought he must really be rocking the speech if it’s so engaging and funny. So I scrolled all the way to the start of the speech…
And learnt about the CPF. Unlike the rest of the people (hurhur) at the ITECC venue, I truly did not know this much about the CPF before I heard the PM speak.
The gist of it: The Minimum Sum (MS) is going up to $161,000 next year. But the property you own can (still) go towards making up half of the MS, or $80,500.
Assuming the CPF payouts are insufficient for your retirement needs, you can continue working, your children might support you, you could draw on personal savings, or get some money out of your house.
For the last option, you can get money out of your house by renting out 1 room, moving in with your children and renting out your whole flat, selling your flat and buying a studio apartment with the Silver Housing Bonus (PM calls this Right Sizing instead of downsizing which is probably not very PC).
*Significant changes: The Lease Buyback Scheme will also be made available to owners of 4-room flats! 🙂 The CPF will be made more flexible with the possibility of a controlled lump-sum withdrawal in one’s retirement years – 65 and beyond – with members taking out a maximum of 20% lump-sum.
To conclude, I think it was an interesting speech. Our PM did try his best to be engaging. And I guess #fishballstick will be trending for a bit. 😉