Corrections and clarifications regarding false statement of fact on CPF policies in TikTok video published by “dr.ishhaq.jay” on 12 August 2023

The Ministry of Manpower would like to point out that a TikTok video published by “dr.ishhaq.jay” (“the TikTok Post”) on 12 August 2023 contains a false statement of fact on CPF members.

False Statement of Fact

The TikTok Post stated that no one among low- and middle-income CPF members who has used their CPF monies to repay their HDB loan has been able to meet either the Basic Retirement Sum (BRS) or Full Retirement Sum (FRS) in their CPF accounts.

This statement is false.

Based on CPF Board’s data, almost 7 in 10 active CPF members have set aside their cohort's BRS at age 55 in 2022. This proportion includes members earning below the median income for those aged 55 years old in 2022 who have used their CPF savings to repay housing loans. We expect the proportion of active CPF members who are able to set aside their cohort’s BRS at age 55 to increase to about 8 in 10 in 2027.

The Minister for Manpower, Dr. Tan See Leng, has instructed the Protection from Online Falsehoods and Manipulation Act (POFMA) Office to issue a Correction Direction to TikTok user “dr.ishhaq.jay” and a Targeted Correction Direction to TikTok Pte. Ltd. under the Protection from Online Falsehoods and Manipulation Act 2019, in respect of the TikTok Post.

Additional Clarifications

Government Support for Retirement Adequacy

The Government has been enhancing the CPF system over the years, especially to benefit those who require more support. For example, we provide 1% extra interest on the first $60,000 of members’ combined CPF balances, and an additional 1% on the first $30,000 of combined CPF balances for members aged 55 and above, to help boost their retirement savings.

To help seniors who wish to continue working, we have been raising senior workers’ CPF contribution rates in tandem with the raising of retirement and re-employment age. For seniors who have less for retirement, we provide targeted support through schemes such as Silver Support and ComCare. We have also introduced the Matched Retirement Savings Scheme to help seniors who have not met the prevailing BRS to save more for retirement.

To support lower-wage workers to earn more through upgrading skills and improving productivity, the Government has worked with tripartite partners to expand the Progressive Wage Model. The Government further tops up their wages and provides additional CPF contributions through the Workfare Income Supplement scheme.

Clarifications on TikTok Post

1. The TikTok Post claimed that members will have to start paying cash for their monthly HDB loan repayment from age 55 onwards, as CPF monies in their Ordinary Account would all be transferred to their Retirement Account at that point.
   
   Facts:

   1. When a CPF member turns 55, monies from the member’s Special Account is transferred to their Retirement Account, up to the Full Retirement Sum. If there is a shortfall to the Full Retirement Sum, only the Ordinary Account monies needed to make up the shortfall is transferred to the Retirement Account.

   2. CPF members can apply before age 55 to have all or part of their Ordinary Account monies retained in their Ordinary Account to pay for their housing loan. If they do so, this monies will not be transferred to the Retirement Account even if there is a shortfall to the Full Retirement Sum.

   3. Any inflows to members’ Ordinary Account after they turn 55 can also be used for housing.

   4. Please visit the CPF Board website for more details.

2. The TikTok Post claimed that members are charged interest on the CPF monies and grants used for housing.
   
   Facts:

   1. When members use their CPF savings for housing, they are tapping into savings that go towards supporting their retirement needs, Therefore, when they sell their property, they are required to refund to their own CPF Account the total amount of CPF monies (including any CPF housing grants) used for the purchase of the flat as well as the amount of interest the member would have earned if that monies were not utilised for the purchase of the flat. The full refund goes to the member’s CPF account, and nothing goes to the Government or any other party. There are no charges imposed on the member when they sell their property.

3. The TikTok Post claimed that members cannot use their CPF savings to pay for their children’s education, whereas foreigners enjoy education for free.
   
   Facts:

   1. Under the CPF Education Loan Scheme, CPF members can use their Ordinary Account savings to pay for their children’s tuition fees at full-time subsidised diploma/degree courses at Approved Educational Institutions.

   2. In general, foreigners pay higher school fees than Singaporeans, and do not get education for free in Singapore. Access to government loans is also not free for foreign students, with interest payable after graduation.

Please visit the CPF Board website at https://www.cpf.gov.sg/member for the latest information on the CPF system.