Entrepreneurs At 55: How CPF ‘Loans’ Can Help

Source : TODAY, Friday, September 21, 2007

Letter from ONG LIP HUA

THE proposal to delay the CPF withdrawal age is a rational decision taken on the assumption that Singaporeans are job-seekers.

Some Singaporeans do indeed squander away their “newly-found” riches after withdrawing their CPF monies.

However, there is also a group of Singaporeans who start a business using their CPF funds.

With Singapore rapidly becoming a global city, together with the advances in learning technologies, the next generation of Singaporeans is more likely and more well-placed — with their social networks — to become entrepreneurs at 55.

We should conduct studies on Singaporeans who have started businesses after withdrawing their CPF and encourage more to do the same.

Generating income through entrepreneurship will reduce the stress on the Government to provide social assistance to our greying population, while helping to contribute to our economic growth.

Income earned from these businesses will help finance our longer life expectancy.

In addition, the rigours of business management will keep us active throughout our “retirement” years.

Admittedly, not all of us are entrepreneurial.

However, that should not stop the CPF board from considering schemes like interest-free “loans” from our own CPF funds if we are keen on undertaking such entrepreneurial endeavours, when we hit the age of 55.

Successful businessmen can contribute the “borrowed” amount towards their CPF after reporting profit, if CPF wishes to be more conservative.