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8/15/2011

A time to stop contributing to Medisave

As long as one is employed, one continues to contribute to CPFMedisave for as long as one is alive. For self employed, they will have to continue contributing to Medisave even at 100 years or more under the present rules. What is the logic of contributing endlessly when CPF savings can be withdrawn progressively after 55?

The other point is the bottomless limit of Medisave Minimum Sum to be retained, increasing annually. There is a point in life when living is a matter of diminishing returns. There is a point in life when there is no point to perpetuate life when the cost of keeping one alive is unsustainable and for no benefits. When one has lived to a ripe old age, when the legs and hands no longer move, or could barely move, when the body no longer feels, when keeping the body alive is so expensive, living or being alive is suffering, what is the point of having a lot of money in the Medisave when in such a state?

For the rich, when money is not an issue, it is ok. To many, when money is a big issue, it is not ok. Should the govt pass legislation to hold back the people’s savings after 75, 80 or more, so that the money can be used for expensive medical bills while the owner of the money could no longer enjoy even simple food, see nor hear?

There must be a point in time when money is no longer useful, when being kept alive is meaningless. Money is useful when one can still enjoy them, having a good meal, a drink, or moving around, still able to feel the senses.

The legislation must be changed to stop CPF from taking the people’s money after a certain age. A self employed person at 60 is in a much better financial position than one that is unemployed and drawing down on his CPF savings. When one is eligible to withdraw the CPF savings, that should be the age for those who are still economically active to be spared the burden of contributing to Medisave. Their incomes are more valuable when they are young, (not counting wasteful inflation) than when they are no longer physically able.
Savings for Medisave after the CPF withdrawal age must be voluntary. After 55/62, CPF or Medisave contribution must no longer be compulsory but voluntary. Otherwise it is like extorting the old folks, to withhold their money to fatten the nation’s reserves, and which they are unlikely to use them. It is another way of robbing them to pay the hospitals, against their wish when they are mentally unable to decide for themselves.

After certain age, the people must have the right to decide if they want to waste their money to pay the expensive hospital bills. Maybe some are hoping that once the oldies hit dementia, unsound mind, let other people decide on how to spend their huge savings in the Medisave.

It is time the govt review the CPF/Medisave Contributions for the old folks. Stop bullying them and taking their money against their wills.

13 comments:

Anonymous said...

It is not going to be a question of how you can decide how you want to spend your medisave. Rather, it is a question of when they will empty it for you when you fall sick.

And then they will transfer money from your ordinary account to top up till the minimum is reached. It is a fail safe system for them. It is a bottomless pit for us.

How many still remember JBJ's very old warning about being better to be dead than to fall sick in red dot.

agongkia said...

If you dun contribute to Mary Save,she can decide whether to let you continue with your kachang puteh business.You have to kowtow,plead,say tolong.kio kew miah if you want to have your licence renew and up to her to grant you your wish to continue.Got money or not,borrow from ah long ,not her problem.Last time declare good profit,every year should naturally be making same profit and you should have the ability to pay.She is fair and kind enough to grant you instalment if you got not enough money.You should be lucky that she did not ask for the lump sum and sent you to havelock road and changi for not paying her..Be grateful.
Please don't ever try to ask to stop paying.
To avoid such situation?Don't be a self employed .

Anonymous said...

Vote wisely and Medisave contribution will have to stop.

No need to debate or beg to have access to your own money.

Just vote wisely.

Chua Chin Leng aka redbean said...

A rational govt will come out with rational policies on how much to save for retirement. And there is a time when further savings are irrelevant, just like buying insurance. What the shit does a 70 year old or older person want to buy insurance for?

There could be exceptional reasons like wealth preservation or for those with plenty of money to want to buy medical insurance to live to 200 years.

CPF and Medisave are for specific purposes and after certain age, contributing more is a luxury. Otherwise, when the end is near, it is better to enjoy your savings while you still can.

To insist that the people continue pumping their hardearned money endlessly gives the impression that the money is for a totally different purpose that is less likely to benefit the contributors.

When the govt is doing such unthinkable thing, the people/victims must stand up to protect themselves.

Don't foolishly pay and pay for all the wrong reasons for other people's self serving interests.

Anonymous said...

rex comments as follows

i think the key word is VOLUNTARY. After a certain age, withdraw restrictions must be reduced or lifted entirely, simply because CPF is merely a Trustee of citizens funds, and a trustee has to return the money at some point in time and has no right to retain it beyond the maturity date of the terms of trusteeship.

Understandably, since the govt borrows CPF funds for its projects or investments, it will be disaster if 100% of the population demand 100% withdrawal at short notice. Therefore the best solution is really a voluntary system. If CPF undertakes to pay a interest of 4% or more,guaranteed, there will be a sizeable portion of middle class/upper class people who might leave the money in the cpf. Because 5% is about the average divident you can get from bluechip shares anyway. But bluechip shares prices may tumble, whereas if the capital value is intact if kept in CPF.
I dont understand why pap can't devise such a scheme. IT is a win win situation.

rex

Anonymous said...

Demand for withdrawal can only be at or after 55, and certainly not 100% and at short notice, because members are of differing ages, so how can it be a disaster with all the money contributed by those younger and still working, purportedly held by them permanently and untouchable?

Some say the CPF is likely a ponzi scheme and in that case I agree it will be a disaster even for them trying to pay off all the oldies on demand.

Hikaru29 said...

My father is already retired and CPF still sends him a letter every year asking him to top up his Medisave. Using what?? My father already has no income! It doesn't make sense at all. Some of these archaic govt policies got to change, including rules on how we use our CPF money.

Anonymous said...

crudely put, medisave is extortion money. only way is to get rid of the government.

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