Study: Low-income more reliant on CPF to cover daily expenditures at 55

A group of researchers at NUS conducted a study to understand how the policy of allowing withdrawal of part of the CPF funds at age 55 influences Singaporeans’ savings and consumption patterns. Assoc Prof Qian Wenlan from the Dept of Finance at NUS Business School, who was involved in the study, noted that those with low income and low savings withdraw the money for daily expenditures, spending them on necessities rather than luxuries.Prof Sumit Agarwal, also from NUS Business School, highlighted that the policy to allow the withdrawal of a portion of the CPF funds could lead to over-exuberance among the lower-income and impact retirement adequacy.