CPF board raises its minimum sum to $155k

[mummy]

Thanks, as it mentioned, it will pledge automatically but why mine is not pledged, funny leh.

I believe it is only pledged if you do not have enough money in your cpf to meet the MS.

[Simi]

I have received a letter from the CPF Board. Min sum set aside is $148k, to be transferred to RA. It never pledge with my property leh, how to pledge it?

Mine was at $139k

did not pledged property also as mostly paid by cash

[irisng]

Many say "I can do it better myself". Sure, but you are obliged to help others by pooling your 20%. This is what this SG passport means. That also means it will not get as high as return as you would do it yourself, but you help to make this country to have a better deal on the population , and the fiscal position, which in turn ensures your password and S$ worth something.

Many poor old folks just hate the idea "I can't take CPF after x yrs". but I know many of them who take the money, and splurge on KTV chinameimeis. To them, this is LIFE for them, for once to indulge. Whatever after, "who cares, somehow gov will take care of me"

For those who know how to manage their money, of course they hope to withdraw because money generate money, maybe even better than CPF interest rate.

For those who do not know how to manage their money, it is better to leave it in the CPF board so that when these group of people get older, there is still some allowance in hand.

But it is human nature that people want to see the money in their hands, because most people can't see the high interest that CPF Board is giving. Maybe allow people have a choice, either to draw out their interest monthly, half-yearly or yearly or leave the interest in the CPF Board to earn extra interest, just like putting a fixed deposit in the bank, draw out the interest and renew the principle amt or renew the interest + principle amt.

[irisng]

Mine was at $139k

did not pledged property also as mostly paid by cash

You mean your min sum is $139k, so you are earlier than me Do you think CPF Board will increase our min sum later on? Actually I only used $100k+ from my CPF plus some cash to pay my ppty, my spouse pay the rest

[NorthernStar]

But if you look carefully at the figures, there was a sharp increment to 11k from about 5k in 2009 and to about 8k after 2009. I do not believe it is totally an inflation adjustment only.

The drawdown age is also increasing and dunno what it will be by my age and I am sure after 2015 the minimum sum will only increase and prob by more now with CPF Life. The payout is also not guaranteed but depends on the boards's undisclosed calculation methods right?

The CPF has slow lost many people's trust like what Dr Toh Chin Chye said. Even my own family members losing their trust though used to be staunch PAP supporters.

Even Lim Swee Say was quoted as saying CPF if still around in one of his speeches.

Essentially, it is a 20% " tax" on yr income this system which is used to partly to fund yrs and others retirement.

http://www.indexmundi.com/singapore/...r_prices).html
it is very easy to find inflation rate thru these years. inflation in 2008 was reported 6.6%. if u multiply $106k cum the intended increase of 4000 with 6.6%, u should get the figure of ~117k.

[chestnut]

Agree 105%

Coming from finance / banking industry, I must say CPF is one of the best systems designed. I can see many laymen not understanding the benefits of it, but I find it hard to comprehend so many well educated ppl in this forum disputing the merits of it.

Think CPF contribution as a tax but in the form of a loan to gov. And you can borrow against this loan to fund your property and even stocks investment (when you "use your CPF money" you are just doing this). Your CPF fund is a bit like perp bond issued to gov where gov is obliged to deliver you a 2.5% or 4% return.

Minimum sum and etc is inevitable and will raise every year , especially to suit CPF Life, where your loan to gov truly become perp bond. Gov is buying the whole population an annuity plan, much much better than individual insurance companies cheating individuals with their annuity offerings. Gov is taking on this liability for you.

I dun wish to sound like a PAP "fan". Strictly from commercial perspective, this CPF system is the best system we can get from PAP, it ranks higher than HDB in my opinion. The other flip side of this system is that the gov has a stable and cheap funding ( yes cheap funding) from all of us. This actually ensures the gov can have a healthy operating fiscal environment, that does not subject to mkt risk. This is very important for a city state. All we have is a trust from the market. S$ is worth this much because market believe we dun have a deficit problem.

[Simi]

You mean your min sum is $139k or you are allowed to withdraw $139k? Actually I only used $100k+ from my CPF plus some cash to pay my ppty, my spouse pay the rest

My MS then was at $139K


recently sold 1 property in Nusa Jaya area
recalling funds to go for 1 last Hooray(property) in Singapore

[chestnut]

My MS then was at $139K


recently sold 1 property in Nusa Jaya area
recalling funds to go for 1 last Hooray(property) in Singapore

Just went panorama.... Considering it and most likely will place a cheque... Hahahahaha

[Simi]

Just went panorama.... Considering it and most likely will place a cheque... Hahahahaha

Bro

I am waiting
will be my last purchase as loan draw down period getting shorter

(preferably a 4bedder for own stay)

[NorthernStar]

'like' amk's view on CPF.

imo, CPF is cater for overall population for the interests of the country. if i think i can generate 10% return, i withdraw it..what hapen if i failed on saving my retirement fund? can gov ignore these so called smart people who eventually failed? it will still back to a social problem to the country.

[chestnut]

Bro

I am waiting
will be my last purchase as loan draw down period getting shorter

(preferably a 4bedder for own stay)

Bro, you will realized the pot getting bigger from the rental....

Always maximize loan tenure for investment props as can write down on tax...

Wish u good luck bro....

[mummy]

Now we r still comfortable with the amt as it was set in 2003 80k adjusted for inflation till 2015 for a few hundred a mth payout and BEFORE CPF Life is conceived. Now with CPF Life, rest assure it will increase much much much more in the years to come after the elections. Many will not be able to meet it and will have to downgrade to studio flats and work till death as payout amt is not even guaranteed is it?

[teddybear]

To be fair, have to admit that CPF system in its current form is better the Western system.............

And structurally speaking, how to take care of retirement, our CPF system is much better than others. Western world is basically doing borrowing more and more now to balloon the current budget, and therefore increase future liabilities. That is now proven to be not sustainable. Ours is not perfect, but it is a better approach. At least it is self running. It ensures the majority of the ppl (I.e., who has a decent job over his life) can have a decent retirement. And it instills the concept that you are still responsible for your own retirement.

Many say "I can do it better myself". Sure, but you are obliged to help others by pooling your 20%. This is what this SG passport means. That also means it will not get as high as return as you would do it yourself, but you help to make this country to have a better deal on the population , and the fiscal position, which in turn ensures your password and S$ worth something.

Many poor old folks just hate the idea "I can't take CPF after x yrs". but I know many of them who take the money, and splurge on KTV chinameimeis. To them, this is LIFE for them, for once to indulge. Whatever after, "who cares, somehow gov will take care of me"

[chestnut]

Now we r still comfortable with the amt as it was set in 2003 80k adjusted for inflation till 2015 for a few hundred a mth payout and BEFORE CPF Life is conceived. Now with CPF Life, rest assure it will increase much much much more in the years to come after the elections. Many will not be able to meet it and will have to downgrade to studio flats and work till death as payout amt is not even guaranteed is it?

Which other country has a better system????

[mummy]

I am not saying it is a bad system but I believe it can be tweaked as it favours the rich over the poor. There is no minimum wage for them and they have yo contribute 20% which is a disproportionate amt leaving them with very little takehome pay. Most here in this forum are quite well to do but how about the less fortunate Singaporeans. I think Sg is still too pro rich and the poor is just left to work till they die which is not what s first world country should be imo. They toiled to build up Sg and still have to work in their old age...I really pity them.

[Sam88]

I am not saying it is a bad system but I believe it can be tweaked as it favours the rich over the poor. There is no minimum wage for them and they have yo contribute 20% which is a disproportionate amt leaving them with very little takehome pay. Most here in this forum are quite well to do but how about the less fortunate Singaporeans. I think Sg is still too pro rich and the poor is just left to work till they die which is not what s first world country should be imo. They toiled to build up Sg and still have to work in their old age...I really pity them.

Again, which first world system is better then ours????

The only way out is to tax @ > 40%.

The employer also pay leh....

[hopeful]

i read cpf buy sgs bonds.
yet cpf rates to cpf holders are higher than the income received from sgs bonds.
the shortfall to cpf comes from where?

i am wondering why govt cannot increase the CPF rates to match inflation in addition to increasing the minimum sum.

if you raise retirement age, then wouldnt you need less cpf ?

to take it further, if you eliminate retirement, work until die, then you wouldn't need cpf at all.
also there is no demographic problem or ageing problem, since the only dependents left are the young and not the aged.

[hopeful]

....They toiled to build up Sg and still have to work in their old age...I really pity them.

somebodies has to pay for the doubling of your salary

[chestnut]

i read cpf buy sgs bonds.
yet cpf rates to cpf holders are higher than the income received from sgs bonds.
the shortfall to cpf comes from where?

i am wondering why govt cannot increase the CPF rates to match inflation in addition to increasing the minimum sum.

if you raise retirement age, then wouldnt you need less cpf ?

to take it further, if you eliminate retirement, work until die, then you wouldn't need cpf at all.
also there is no demographic problem or ageing problem, since the only dependents left are the young and not the aged.

Not everyone is blessed to be able to work till 67... Health issues come into play...

Look at indo, once you above 60, there are many young ones waiting in line wanting your job.... The jobless rate is so high...

[mummy]

somebodies has to pay for the doubling of your salary

No lah, actually salary did not double...as I cannot work such long hrs only 25% or so increase lah...I was a bit overly exuberant...

[hopeful]

No lah, actually salary did not double...as I cannot work such long hrs only 25% or so increase lah...I was a bit overly exuberant...

ot: lucky didnt upgrade the landed

[mummy]

ot: lucky didnt upgrade the landed

Yes...and I think we should too much focus on property too...safer to diversify a bit....

[hopeful]

Not everyone is blessed to be able to work till 67... Health issues come into play...

Look at indo, once you above 60, there are many young ones waiting in line wanting your job.... The jobless rate is so high...

retirement funds are claims on the working population.
when there is surplus output, the working population will accept your money/claims in exchange for their labour output.

in an ageing society, if there is still surplus output, then retirees are still fine.
if no surplus output, well, i dont think nobody's cpf will be enough for retirement.

this put in a new perspective to the story of the couple bringing the grandma to the mountains and left her to die.
when i was 6yo, i was told that was an unfilial act and i think badly of the couple.
now that i am 18+ (still young), i realise that it is an act of survival. there is no surplus output (rice) to feed the grandma. it is work or die.

[mummy]

retirement funds are claims on the working population.
when there is surplus output, the working population will accept your money/claims in exchange for their labour output.

in an ageing society, if there is still surplus output, then retirees are still fine.
if no surplus output, well, i dont think nobody's cpf will be enough for retirement.

this put in a new perspective to the story of the couple bringing the grandma to the mountains and left her to die.
when i was 6yo, i was told that was an unfilial act and i think badly of the couple.
now that i am 18+ (still young), i realise that it is an act of survival. there is no surplus output (rice) to feed the grandma. it is work or die.

Wah, you so young surfing condosingapore ah...no wonder your nick is hopeful....

[chestnut]

retirement funds are claims on the working population.
when there is surplus output, the working population will accept your money/claims in exchange for their labour output.

in an ageing society, if there is still surplus output, then retirees are still fine.
if no surplus output, well, i dont think nobody's cpf will be enough for retirement.

this put in a new perspective to the story of the couple bringing the grandma to the mountains and left her to die.
when i was 6yo, i was told that was an unfilial act and i think badly of the couple.
now that i am 18+ (still young), i realise that it is an act of survival. there is no surplus output (rice) to feed the grandma. it is work or die.

In life, we cannot be too judgmental....

Life is about which side of the fence you are in.... People tend to view it from their own perspective....

When a poor man has a major illness, he will want to die and not drag his family down with financial burden...

When a rich man has a major illness, he expects the best doctor,etc... To cure as he still has a wonderful life ahead...

A poor man is not afraid of death, it only shortens his hardship....

A rich man is afraid of death, why??? You know why...

[hopeful]

....
A rich man is afraid of death, why??? You know why...

the potbelly or the bulging pockets full of money will get stuck and cannot fit through the eye?

[heehee]

$155,000 min sum is a lot of money! Enough should be enough & they should not increase it anymore! (Not to forget another $45,000 in Medisave!)

I am not saying it is a bad system but I believe it can be tweaked as it favours the rich over the poor. There is no minimum wage for them and they have yo contribute 20% which is a disproportionate amt leaving them with very little takehome pay. Most here in this forum are quite well to do but how about the less fortunate Singaporeans. I think Sg is still too pro rich and the poor is just left to work till they die which is not what s first world country should be imo. They toiled to build up Sg and still have to work in their old age...I really pity them.

[mummy]

$155,000 min sum is a lot of money! Enough should be enough & they should not increase it anymore! (Not to forget another $45,000 in Medisave!)

They will definitely increase it after the election if no significant opposition voted in to cater for the CPF Life increased payout and for lifetime.

CPF Life to me is just another election carrot. Whether it can really be fulfilled in future, there is no gaurantee...

And if there is not enough money, the 20% can be increased and employer's contribution decreased right?

[Kelonguni]

$155,000 min sum is a lot of money! Enough should be enough & they should not increase it anymore! (Not to forget another 45,000 in Medisave!)

Even if they decide not to increase it anymore, by pegging to 2003 levels, assuming 3% inflation, it will be 280,000 in 2035. Assuming 4% inflation, the sum is 340,000.

I hope I have not calculated wrongly.

Be very prepared...

[mummy]

We should fight for a fairer system. The FT they let in are taking our our jobs slowly and new citizens do not have to serve NS. Sooner or later, the FT new citizen will be voted in parliament and then what happens? As it is there is anger over what PM Lee recently said about foreigners being part of Sg and anger over the fact they do not serve NS. What r our sons protecting? The foreigners can just run away in times of war even if PR or so called new citizens. So much anger that 5 17 year olds allegedly did the graffetti on a HDB block cursing the garment....it is time to decide on our future soon and I hope we think carefully.