10/20/2008

Time to change beneficiary in CPF

In the past it is normal to name our spouses as the beneficiaries to our CPF savings. With all the new changes to how we can withdraw our CPF savings and how we cannot withdraw them, naming our spouses as the beneficiary is becoming irrelevant. Quite a number of CPF holders will die together with their spouses, if the projection is correct, in their late eighties. What this means is that our spouses will not inherit our savings. Also, a huge sum of our savings will not be used even after we pass away. It is thus necessary to name our children or maybe grandchildren as our beneficiary. Our children may be too old by then.

11 comments:

Anonymous said...

It is not compulsory to make a nomination. You can leave it as such, or withdraw a nomination. In such situations, the money will be handed over to the executor of the late member's estate, which could be his/her spouse, child, grandchild, great-grandchild.

Matilah_Singapura said...

Good luck in trying to collect every dime in "your" CPF.

CPF (aka social insurance) contribution is a TAX. Once you've paid it, the govt can do as it pleases.

redbean said...

ya man. just take comfort that the money is always there, and hopefully cpf is still there when you need the money.

and you can feel very rich by reading the statements.

Anonymous said...

plain Robbery. Working in paradise and unable to enjoy ones earning in Heaven. FT benefit the most, they can pack up and leave with their Nest when time to retire.

poor local. we are being rob by the fat cat as well.

a chinese proverb " we work to live, Not live to work."

Anonymous said...

You guys need to think outside the square a bit. First you need to leave Singapore and setup base in an immigrant-friendly country for a few years, typically 5 - 7. Once you qualify for citizenship in your new country, renounce your Singaporean one and collect your CPF in full. Once you do that, you are free to re-enter Singapore and look for a job. After you secured one, you will be given an EP, and you can then take up residency in Singapore once again. I have done it, so it is definitely possible. Now back in Singapore for close to three years and I have the option of taking up permanent residency as well. However, the flip side to that is that I would have to return the CPF money that I had collected when I renounced my citizenship. I have written in to the CPF Board to request for an exemption but am not too optimistic of my chances. In any case, even if I have to put the money back, I can still take it back out again once I give up my Singapore PR status.

In short, you need to be creative to make their system work for you. I have proven that even a Singaporean can rort the system that you guys have claimed is only beneficial to FTs only. The question that I put to you is: DO you have the guts and gumption to do what I have done ?

Anonymous said...

So, if you come back after leaving and taking out your CPF, you have to reinstate what you took out from the CPF when you leave. That probably is one of the reasons why so few wanted to come back and the Govt also knows that if reinstatement of their CPF is not required, many will take advantage of this loophole.

Anonymous said...

PP, yes you have to refund the money back to your CPF account + interest if an ex-Singapore citizen or ex-Singapore PR is granted SIngapore citizenship or PR again. It's no big deal for me as I had used that momey to profit from the property boom in my adopted country a few times over. I have now liquidated my property assets there and am waiting for the private property market in Singapore to come down to more sane levels before going in.

Anonymous said...

CPF money is self explanatory, it is CPF Money and up to it to arrange for its' uses and returns to members. A big portion will be retained, medisave, minimiun sum and what not.

Few would have much to pass down to successors in future with falling wages and ever rising costs of livings in essential goods and services.

patriot

Matilah_Singapura said...

> Few would have much to pass down to successors in future <

I think you are incorrect in saying that.

More people than ever are leaving inheritances. Society as a whole is getting richer, thanks to free enterprise and a reasonably free market.

You will find the people who are "left behind" are making their decisions to take action based on beliefs and knowledge which is no longer applicable in our slowly liberated world.

There are more squillion-aires aged 25 and below now, and more are being made everyday. In past times, the majority of young people had to quit in their teenage years to go and work to support their impoverished families.

Nowadays young people can choose to stay in tertiary education for up to a decade or longer. Whether or not their parents pay, or the state pays, or they receive scholarships, without enormous and growing wealth in societies, this would not be possible.

Anonymous said...

I do wish I am wrong, the more wrong I am, the merrier I am.

Thanks aplenty for the interactions, Matilah Singapura!

patriot

Matilah_Singapura said...

Thank you too. Anytime!

Stay merry!