CPF - Can See, Cannot Touch
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A SNA video feature:
http://www.youtube.com/watch?v=3T8kInEYNYY
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why complain when it has been so for donkey years?
would not the people have said something if they cannot tolerate this thing?
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learn from lim swee say. everyday think about how much money you have inside your cpf account, and you'll be very happy.
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Can see and can touch lah but only restricted to those thunderstrike members
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Originally posted by sir_peanuts:
learn from lim swee say. everyday think about how much money you have inside your cpf account, and you'll be very happy.
Yes, in the characteristic Lim Swee Say ways of trying to be less stupid:"everyday think about how much money you have inside your cpf account, and you'll be very happy"
is similar to Madoff and Stanford telling their US contributors - think how much they have contributed, and they should be very happy too.
Do not worry about being "Conned, Peeled, Fooled" - just be happy thinking about how much money you have given.
When CPF was first started by the British Colonial Government - it was meant to be an optional and voluntary retirement savings in addition to the pension scheme.
LKY, Toh Chin Chye and Goh Keng Swee developed the CPF further as a cheap source of funding for the Government plan to develop the infrastructure, which at the same time was made compulsory to enlarged the net to capture a wider section of the population.
The attraction was that it was a guaranteed retirement savings plan with interest of 2.5% per annum compounded annually, with the minimum sum draw down age tied to retirement at 55.
This withdrawal age of 55 was revised to a later date of 62 as recommended in the Howe Yoon Chong report - this was later revised to 63 to be implemented by 2012, to be changed to 64 years by 2015, and then 65 by Year 2018.
In the late-1980s, new plans were introduced to deduct for compulsory subscription to Medisave; and subsequently in the 1990s when Medishield was also added - (with the deductions ranging from $30 to $705 depending on the insured person's age - Pg 30 of Annual Report 2007 - premium discounts of $33.50 TO $282 is given subject to past period of insurance).
Additonal deductions were introduced in the 1990s for old-age benefits.
All these deductions were in excess of the 2.5% interest payable per annum.
These deductions co-incided with population growth studies that showed a steady decline in the number of births.
For the CPF to succeed, the number of retiring Singaporeans should be very much less and there should be an increasing number of new workers contributing into the CPF scheme.
Those contributing must be more then those withdrawing, and this growth should be consistent every year.
The CPF is designed to be like a pyramid - with a wide base and a narrow apex.
With the birth rate decreasing, the new participants entering the CPF scheme every year is shrinking, compared to the numbers of older Singaporeans retiring.
The CPF pyramid base is getting smaller, even as the number of aged is getting bigger from the baby boom that began in the mid-1940s after WW2.
In the CPF Annual Report 2004 - the membership from Year 2000 to 31 Dec 2004 had shown slow growth:
2004 - 3,018,014 (+39,521)
2003 - 2,978,493 (+15,333) ???
2002 - 2,963,160 (+40,487)
2001 - 2,922,673 (+42,717)
2000 - 2,879,956
In the CPF Annual Report 2007 - the membership from Year 2003 to 31 Dec 2007 was:
2007 - 3,163,038 (+63,479) ??? FT contributions ?
2006 - 3,099,559 (+51,007) ???
2005 - 3,048,552 (+30,538)
2004 - 3,018,014 (+39,521)
2003 - 2,978,493
Members' Balance as at 31 December 2004 was $111,873.8 million
Members' Balance as at 31 December 2007 was $136,586.9 million
reflecting a growth of $24,713.1 million.
Contributions Received (including Government grants and dividends)
2007 - $18,185.0 million
2006 - $16,547.1 million
2005 - $16,105.1 million
2004 - $15,320.1 million
2003 - $15,870.0 million
Annual withdrawal
2007 - $11,561.9 million
2006 - $14,350.5 million
2005 - $11,776.1 million
2004 - $10,310.3 million
2003 - $11,816.5 million
New schemes were introduced that initially required S$25,000 to maintain the retiree till he reach 70. This age was further increased to 75 then 85.
Meanwhile, the Government continue to toy with the CPF monies that are designed to delay any payout.
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Consider the contents of the following blogger writing about the CPF Life Scheme:
Think carefully before opting for ‘no refund’
Wednesday, 18 February 2009, 11:08 am | 1,799 views
The following is a letter written by Leong Sze Hian and published by The New Paper on 17 February.
I REFER to media reports about the changes to the CPF Life scheme.
Changing CPF Life’s original 12 options to four, is not just making it less confusing for Singaporeans to choose. There is a rather fundamental change from the National Longevity Insurance Committee’s recommendations accepted by the Government.
In the original ‘no refund’ option, there was still a refund, based on the unused portion of the CPF retiree’s Retirement Account balance.
Now, the new Life Income Plan (non-refundable), which pays the highest monthly income, will have no refund at all when the retiree dies.
Given the choice of receiving the most income against receiving less with a higher refund for beneficiaries, I think some Singaporeans, particularly those who don’t have much in their CPF and do not have other funds, may choose the Life Income Plan as every dollar counts for them.
But what will happen to widows and dependent children, if such retirees die shortly after starting to receive their CPF Life annuity payout at age 65?
When the Compulsory Annuity Scheme was announced in August 2007, there was widespread unhappiness about requiring all Singaporeans to buy a life annuity, which we can benefit from only if we live beyond 85.
Now, with the Life Income Plan, I think it is equally hard to accept that you may lose your entire CPF minimum sum of up to $134,000 by 2013 plus accrued interest, if you choose the option that gives you the maximum monthly payout.
The committee’s original recommendation is still a better ‘middle of the road’ solution.
I would like to urge Singaporeans to think carefully before choosing the no-refund option, as it may mean losing your CPF life savings if you die early.
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i think if you surrender your citizenship, then can make full cpf withdrawal right?
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im fine with the stupid cpf...what i'm not happy about is the PSEA scheme which can only be used to pay school fees...wtf man..
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Originally posted by PedoBear:
i think if you surrender your citizenship, then can make full cpf withdrawal right?
If i remember correctly, we're expected to put back the money if we ever want to come back to Singapore to work.
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Originally posted by Stevenson101:
If i remember correctly, we're expected to put back the money if we ever want to come back to Singapore to work.
oh, i was thinking of when reach retirement age, surrender singapore citizenship, make full cpf withdrawal then retire to some other country.no need to wait for the money to trickle in every month.
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during father's days, they even state in newspaper that I can top-up my father's CPF as a "father's day gift" to him. More like a "gift" to CPF!! :lol: don't think anyone would be so dumb to top-up CPF... :lol:
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Originally posted by cyberr1981:
during father’s days, they even state in newspaper that I can top-up my father’s CPF as a “father’s day gift” to him.
More like a “gift” to CPF!!
don’t think anyone would be so dumb to top-up CPF…
You can top up his cpf with your cpf and since you cannot anything with your own cpf (the special account portion), must as well transfer it to your father to make him happy!!!
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Originally posted by sir_peanuts:
learn from lim swee say. everyday think about how much money you have inside your cpf account, and you'll be very happy.
Learn from him n u will start to lim she she.without our CPF, he dun even has she she to lim
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non-refundable compulsory annuity = getting penalised for dying earlier than average age
How does that sound?
Anyway.... I don't treat CPF money as my money at all... Plan till old age without including it in the calculations... By the time I'm 65, the withdrawal age might be 75
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Originally posted by eagle:
non-refundable compulsory annuity = getting penalised for dying earlier than average age
How does that sound?
Anyway.... I don't treat CPF money as my money at all... Plan till old age without including it in the calculations... By the time I'm 65, the withdrawal age might be 75
i think by that time, they will make it compulsory to invest ALL your cpf monies to annuity, so no more withdrawal age le...
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The state of the peoples money being taken and hidden away somewhere through CPF.. very sad state..
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be towkay or boss lah, suka suka pay abit into medisave for tax reason, other than that, dun even need to bother about about CPf.
CPF only give you mental release, as for physical, you hv to fight for it.
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Originally posted by Atobe:
Consider the contents of the following blogger writing about the CPF Life Scheme:
if the retirees die before he used up his annuity funds completely, the family members are eligible to take the rest of the funds depending on who he initially indicated the beneficiary if not the nearest next of kin.