The Singapore government has announced major changes to the Central Provident Fund CPF scheme this week aimed at discouraging workers from using a large part of their retirement savings on purchasing a home. The move could in theory release more than S$37 billion $21.5 billion for investment, with fund managers the most likely winners.
Singapore's retirement system may seem complex at first glance. But from the government's point of view it is designed to look after the whole adult life of its workers, from buying a computer and a home, to providing for childrens' education and retiring in reasonable comfort.
Under the current CPF scheme, each worker owns three major accounts...
