MY WIFE and I are in our late 40s and live in a paid-up five-room HDB flat.

We are still working and have a few hundred thousands dollars in our Central Provident Fund (CPF) Ordinary and Special accounts.

We will also have a six-figure insurance payout on maturity when we reach 65 years of age.

With the guaranteed amount from the compulsory insurance taken via the CPF when we are older, we have enough set aside for our retirement.

However, the issue that worries us is taking place now, not when we reach 55.

Whatever take-home pay we earn now is barely enough to meet family expenses for ourselves and our two children.

Needless to say, we have little or no savings at all.

I believe that there are many more people like us, at the lower end of the typically squeezed middle-income group.

We do not qualify for many government handouts. Our salary increments, whenever we have them, do not keep up with the pace of inflation.

We need more money now, and not when we are 55.

The irony is that when we withdraw our CPF savings at age 55, we may not have urgent need for the payout as our children will probably have finished their education and joined the workforce.

It is time for the CPF Board to consider allowing eligible members who have healthy balances, and who are currently not using their CPF savings, to withdraw a small part of their savings before the age of 55.

The CPF Board can regulate this policy with certain conditions, for example, allowing members to withdraw a certain percentage of CPF savings before then.

Members should also have more than enough funds to meet the mandatory Minimum Sum, or must not have to service heavy loans using their CPF savings.

The CPF Board can also consider allowing members to withdraw their savings in the form of a loan with principal sum and interests paid into their own accounts.

The Government tells us regularly to make adjustments and changes to adapt to current conditions or to keep up with the times.

To my best knowledge, the CPF Board has not made as many changes to its policies.

If the current economic situation is not the right time, then when is?

Gary Chua

This article was first published in The Straits Times.