... enable Singaporeans to have a secure retirement, through lifelong income, healthcare financing and home financing. (CPF Mission statement)
But those in the lowest 10th percentile cannot rely on the CPF alone to provide for their retirement. The current rates are too low and if the contribution rates were raised, they would have little to take home for daily expenses.
So... the recent brilliant idea to have different minimum sums for different groups of people, was... kinda silly, really.
To be fair, I think the idea is just an idea. But then again, this is a government that doesn't broach ideas unless they are reasonably enamoured by the idea. So...
This idea is still paternalistic, and prescriptive. It would require categorising people according perceived needs and it would not be able to make fine distinctions, or address special considerations or circumstances.
The net effect is that there will still be complains and resentment.
My issue with the Minimum Sum is that it is mandatory, prescriptive, and paternalistic. And that it takes away personal responsibility from those who have it least (which may be a pretty good definition of paternalism.)
The best thing to do with the minimum sum is to do away with it.