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6/27/2011

Pension versus CPF payout

This is becoming a sore thumb. Many are grimacing at the inconsistency in the application of the two schemes, particularly the time for withdrawal. In one case it is withdrawing with pleasure and another with so much agony, so difficult to pull out with possibility of die standing and still trap inside. The unhappy CPF members are claiming that there is no logic that can be withdrawn at 55 and in a big way, while another at 62, in bits and drips, and probably stuck inside for a long, long time.

Actually the logic is plain and clear. It is the most logical thing to do so when the CPF savings are limited and exhaustible. You take out too much and too early, it will all be gone. In the case of pension, it is kind of unlimited, or at least the source of the fund is unlimited. So there is no problem withdrawing early even with big amounts. The stock will be replenished from the treasury. As for CPF savings, the person withdrawing his own money is not going to put in his own money to withdraw his own money later. You just can’t go on withdrawing from a fixed sum of savings without replenishing.

It is all about practicality and expediency. This should settle this contentious issue for all.

16 comments:

Anonymous said...

In a dog eats dogs world, the wilder dogs will devour the domesticated dogs.

Anonymous said...

After paying the HDB loan, nothing much left in CPF. Yet the Min Sum still keep increasing year after after, withdrawal age keep creeping up, how to tahan?

Anonymous said...

It is because there is nothing left in CPF that they have to keep our money longer and withdrawal later.

I am not talking about individual member's CPF, but the whole CPF ponzi scheme.

Anonymous said...

SO who exactly are the privilege ones that are enjoying today's "Unlimited Pension" vs those with "Limited CPF"?

Kee Chiew!!

Anonymous said...

Visited Chiang Rai recently. Apt prices abt 10% of Singapore (like Sin 30 yrs ago). Cool mountain air. Decent shopping. Migrate, renounce citizenship, withdraw CPF...... This is the last strategy...exit?

Chua Chin Leng aka redbean said...

Correction, no one is being paid unlimited pension. It is the source of fund funding the pension that is as good as unlimited.

Chiang Rai or Chiang Mai, great places to retire.

Anonymous said...

Go, go faster!
You whining and forever
grousing sinkies!
The lesser we have of You
the better!!!

Anonymous said...

you foreigner? want to start something you will regret for life?

Anonymous said...

PENSION and CPF will be a big issue to Singaporeans now and up to the next General Election. Why take away pension from Civil Servants and at the same time grant it to politicians like MPs and ministers. Worst still each MP or minister can be pensioned for life after just two terms of eight years in office. With Eighty-seven MPs and ministers and a large number of them being pensioned off every eight years and with new MPs and ministers to replace those retired ,it is a never ending cycle of MPs and ministers collecting millions of dollars at the country's expense. It is time the people put an end to this self gratifying practise of the shameless uncaring politicians who only want to enrich themselves while the people suffer in silence.

rex said...

I think the greatest injustice of the CPF system is that when the government GIC takes money out of CPF Funds to "gamble" in investments, it needs absolutely no permission from the owners of the Funds which is, the citizens. We are told that CPF board loans its funds to GIC. That is a fact.

Yet when the owners, we peasants, want to take out our own money at 55, we have to ask the government for permission, and that permsission comes with a thousand complex rules which keep changing!

Is there such a thing as LAW in Singapore? Can we take Class Action against the Government of Singapore?

rex

Anonymous said...

No problem with citizens loaning $ to GIC for investment. The biggest crux is when they made consistently 8-10% or more every year on their returns, we peasants only get 2.5%, barely even covering the 3-6% inflation rate. Question to ask = who is pocketing the difference!!! Try do that to the Norway or Canadian pension funds, and the people will revolt!!!!

Anonymous said...

If there is really someone who decided to take the people's money for his own gambling and prevented the people from using their own money because of this, this someone better watch out for retribution.

Anonymous said...

The ministerial pension scheme is like a hole in the country's treasury, leaking money all the time and the hole will get bigger and bigger over time, sucking the reserves dry.

Chua Chin Leng aka redbean said...

Some sheeples said they have to plead with the govt for the release of their cpf at 55. Sheeples just do not know their rights.

In the first place the money is theirs. No one has the right to keep their money at will. They have all the right to demand their money back.

And they can use their vote to vote out any govt that do not serve their interests. But then they squandered away their rights and now can only think of pleading.

Silly buggers.

Anonymous said...

The super high income buggers with millions in their CPF Accounts get pension till they die. They can even take it(pension) in one lump sum!
Those that need their CPF to survive cannot take back their own monies which earn interest rate that is lower than the rate of inflation.
Why is the authority making life so difficult for the people???

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