Data on CPF Members Who Are Unable to Set Aside CPF Full Retirement Sum in Retirement Account

Mr Leong Mun Wai asked the Minister for Manpower (a) what is the current number and percentage of male and female CPF members respectively who are unable to set aside the CPF Full Retirement Sum (FRS) in their Retirement Accounts; and (b) what is the forecast on the number and percentage of CPF members who will not be able to set aside the CPF FRS over the next five years.

Dr Tan See Leng: The Basic Retirement Sum (BRS) provides members with lifelong payouts that cover a basic level of retirement expenses. Thus, attainment of the BRS is the relevant indicator for basic retirement adequacy. Those who prefer a higher payout can choose to set aside more CPF savings to the amount of the Full Retirement Sum (FRS) instead of maintaining only the BRS in their Retirement Account if they own property.

About 33% of active CPF members who turned 55 in 2022 had not set aside the Full Retirement Sum in cash, or in cash and property 1 . Of these members, about 45% (6,100) are male and about 55% (7,300) are female.

Older cohorts of female members tend to have less CPF savings than male members as the labour force participation rate and median income for females were lower historically. As employment outcomes for both males and females have improved over time, members are earning and saving more. Hence, over the next five years, we estimate that the proportion of active CPF members who do not set aside the FRS would reduce from about 33% (13,400) to about 24% (11,500).

Note(s) to Question No(s) 21:

1 From age 55, members can withdraw their CPF savings in excess of half the FRS (i.e. the Basic Retirement Sum) if they own a property.