The people may find this piece of news frightening, but to the govt it is good news. The MOM is going to help the oldies again. Dunno why, whenever the govt says it wants to help the people, I got a very strange and uncomfortable feeling. This time the MOM is thinking of reviewing CPF rates for the above 50 uncles and aunties, the vulnerable group that have found themselves having not enough savings after a life time of savings. Dunno why, and nobody knows why. They must have squandered them away in wasteful spending.
So here comes the govt to help them, and very likely to raise their CPF and employers contributions. And the magical scheme called CPF Life will be relooked into to ensure that the annuity will be paid for life. The insurance men are smiling. Tell you what, I don’t like their smile. The longer the payout, or the more the payout, the more will be the pay in. And the longer annuity is to last, the longer it will stay in. As simple as that. If they plan the annuity to last till 120 years, it means whatever money, a big portion will stay in till 120 years. Simply ingenious and logical.
And I can already see how good the scheme is. And it is so good that it will be made compulsory for sure. Our reserves are going to get another boost and the country will be richer, and have more money to invest in big big deals. We can buy up the world.
This is going to be another win win formula, good for oldies, good for employers and good for the national reserves. It can’t be that frightening right?
The people are so lucky. Now they can live till 120 years or more, forever, and there will be more to take.