Budget 2015 could see tweaks to CPF system

SMU Vice President (Business Development) and Associate Professor of Finance Annie Koh gave her views on the boosting of Central Provident Fund (CPF) savings and retirement payouts for older workers, as announced in Budget 2015. She said that “the individual may actually be quite happy to come back as an advisor, in a mentor role, leveraging the experience in their previous jobs to help a group of younger workers, so they are quite comfortable looking at renegotiating a different package”. She added that “if you bring up the employer contribution on that lower package, I don’t think that is going to set them back on cost totally”.