Several MPs also spoke on senior employability during the Budget 2023 debate. Read more at straitstimes.com.
SINGAPORE - Retirement adequacy was a topic of concern among MPs on Wednesday as they debated Budget 2023, which included the move to raise the monthly Central Provident Fund salary ceiling from $6,000 now to $8,000 in 2026 to keep pace with rising salaries.
This could mean higher contributions for some workers while also possibly benefiting a wider group of workers. Ms Jessica Tan also raised the same point, citing a resident who was concerned about his lower take-home pay. “One would expect this group to be capable of going out and investing in their own endowment insurance or other instruments for the longer term. Is it therefore necessary to mandate that such workers contribute a greater proportion of their wages into the CPF, considering the opportunity cost to these workers?” he said.
With aggressive rate hikes by the US Federal Reserve and increasing interest rates across central banks, Mr Saktiandi said that the CPF Ordinary Account’s interest rate of 2.5 per cent and the Special and MediSave accounts’ interest rate of 4 per cent are “relatively unattractive compared to other investment options like fixed deposits”.Singapore’s core inflation is projected to average 3.5 to 4.5 per cent in 2023, and headline inflation to average 5.5 to 6.5 per cent.
She added that with the training and reskilling of seniors for suitable jobs being a challenge, it was heartening to know that the pilot for the Jobs-Skills Integrators would be in sectors that have higher concentration of mature workers.
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