The New Paper
Friday, Aug 15, 2014
Investor Survey
SINGAPORE - Just one in five Singapore investors is confident that the Central Provident Fund (CPF) system will meet their retirement needs, according to the findings of a new Manulife survey.
Nearly half (47 per cent) the investors polled feel their CPF savings will not be sufficient to cover their retirement expenses and more than four in 10 believe the returns are too small, said the financial services group in a release yesterday.
Only a quarter of investors said they make additional voluntary contributions to their CPF accounts.
Insufficient Money
The survey also found that many do not top up their CPF accounts because they say they do not have enough money to make additional payments.
Those who do top up contribute an average of 17 per cent of their monthly personal income, in addition to their mandatory contribution.
Almost two-thirds (63 per cent) of pension plan owners surveyed said there should be greater flexibility in withdrawing funds in order to improve the CPF system.
Nearly six in 10 (59 per cent) also want more education on retirement planning, while more than half (56 per cent) want government or employer contributions to be raised.
Mr Naveed Irshad, president and chief executive officer of Manulife Singapore, said: "CPF is an important element of every Singaporean's retirement plan, but it's not the only one. People should consider developing a diversified portfolio that includes other financial solutions to help meet their retirement needs.
"While changes to the CPF are expected, investors have many options available to improve the way they balance their portfolios, including many access points to improve their knowledge."
The research was conducted as part of the Manulife Investor Sentiment Index survey for the second quarter of this year. Manulife will release the Singapore investment sentiment findings later this month.
- See more at: http://business.asiaone.com/news/1-5-sure-cpf-meets-retirement-needs#sthash.o8LsXfRM.dpuf
Friday, Aug 15, 2014
Investor Survey
SINGAPORE - Just one in five Singapore investors is confident that the Central Provident Fund (CPF) system will meet their retirement needs, according to the findings of a new Manulife survey.
Nearly half (47 per cent) the investors polled feel their CPF savings will not be sufficient to cover their retirement expenses and more than four in 10 believe the returns are too small, said the financial services group in a release yesterday.
Only a quarter of investors said they make additional voluntary contributions to their CPF accounts.
Insufficient Money
The survey also found that many do not top up their CPF accounts because they say they do not have enough money to make additional payments.
Those who do top up contribute an average of 17 per cent of their monthly personal income, in addition to their mandatory contribution.
Almost two-thirds (63 per cent) of pension plan owners surveyed said there should be greater flexibility in withdrawing funds in order to improve the CPF system.
Nearly six in 10 (59 per cent) also want more education on retirement planning, while more than half (56 per cent) want government or employer contributions to be raised.
Mr Naveed Irshad, president and chief executive officer of Manulife Singapore, said: "CPF is an important element of every Singaporean's retirement plan, but it's not the only one. People should consider developing a diversified portfolio that includes other financial solutions to help meet their retirement needs.
"While changes to the CPF are expected, investors have many options available to improve the way they balance their portfolios, including many access points to improve their knowledge."
The research was conducted as part of the Manulife Investor Sentiment Index survey for the second quarter of this year. Manulife will release the Singapore investment sentiment findings later this month.
- See more at: http://business.asiaone.com/news/1-5-sure-cpf-meets-retirement-needs#sthash.o8LsXfRM.dpuf
