The Central Provident Fund (CPF) started seven decades ago as a compulsory savings scheme for salaried workers to save for retirement at age 55. It was a simple and good scheme.

Over the years, the CPF changed in many ways. It expanded its roles and became a vehicle to encourage home ownership, to pay hospital expenses and to provide a lifetime and disability income.

The financial arrangements are messy and confusing.

The employment structure also changed significantly. A larger proportion of workers now have a temporary out part time job. They are not able to make regular contributions to meet their mortgage and other commitments. They cannot earn a good return on their CPF savings.

We need a total revamp of the CPF scheme. It should be converted into a voluntary saving scheme that can provide an attractive return for the members and can be used flexibly.

The motto is - don't make it compulsory, instead, make it attractive.

Tan Kin Lian