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10/13/2011

Where would the next goal post be placed?

At age 55, the CPF holders were promised that they could have their money back. The goal posts had since shifted, to 62 years, and will continue to 65 and maybe later. The CPF holders got to thank medical science for keeping them alive, theoretically till 90 or 100 years. So the simple logic is that they must have money in the CPF till 100 years. Bloody hell, if anyone is employed or self employed at 100 years old, he would still have to contribute to his CPF or Medisave!

Can we expect the next goal posts be shifted to 100 years? Possibly, but then you can call yourself lucky. I think the next goal posts could be further into the future.

Many CPF holders would die with plenty of money in their CPF, through the minimum sum and Medisave schemes. And this money will go to their beneficiaries. One of the presumed reasons why the goal posts were shifted to 55 was that at that point in time, there may not be enough money to pay out when too many are taking their money out at the same time. So the pay out date needed to be shifted, delayed. The official position is not true as the reserves are there as proof of money. If anyone still does not believe this is so, wait for the announcement for the next multi billion dollar purchase or the next multi billion dollar loss. No one will blink an eye, because money is plentiful in our reservers.

Rightly or wrongly, some believe that other schemes were thrown in to reduce the damage of a huge withdrawal at 55. Higher HDB prices, CPF Life, minimum sums, Medisave, etc etc, in a way added to reduce the damage should the money be returned to honour the promised date.
But would it work. At every point in time, unless the investments are bearing fruit with a handsome return, there will not be enough money when the date to payout is reached. And how could there be a handsome return when the cost of keeping 400 heads is as high as $8b? I hope this is a misprint, and not true.

If age 62 to pay out is no longer manageable, let’s push it to 65 and see whether there will be enough available. If not, 70 could be the next red letter day.

The other big red letter day is when all the oldies start to fall and their minimum sums in both the retirement and Medisave accounts are due for pay out. That day can come pretty soon as many oldies are past 60s. And if it comes, and not enough money to pay back, do not be surprised, a new ruling may come forth.

Let me try to guess. Just a guess, call it a wild guess, the sum left in the CPF of deceased members could be transferred to the special accounts of the beneficiaries. Ouch! No cash out.

If this is done, how long more will the money be pay back? The answer is Never, as it will float from one member’s Medisave account to the next beneficiary. Oh dear, I may have made a very bad slip and this idea could possibly be picked up by some brilliant kids.

PS. I wrote this on 13 Sep and delayed in posting. I am now told that this is already in practice. Really? My god, if this is true, then I am getting to think like supertalents. All this is just a joke, cannot be true.

6 comments:

Anonymous said...

The only way to get your CPF is to obtain citizenship of another country and renounce SG citizenship. BUT, have to do it fast as the same brilliant minds are trying to plug this loophole. Maybe, some brilliant idea like, need to retain full or part of CPF money of ex-SG citizens because need to make sure he has no outstanding payments.

Anonymous said...

The Evils know not of sin.
When needed, they will go
into extreme, no different
from terrorists.
There is no need to second
guess where and when their
next move will be.
With the power in their hands,
it is anytime, anywhere.
So, be prepared to die
standing and cursing.

patriot
patriot

Anonymous said...

How many Presidents does it take to change a light bulb?

One. But he needs 56 man-years to find out if there is a replacement light bulb in the reserves.

Anonymous said...

A lot of guesses and then a conclusion!! Well done. Very constructive. Most constructive article this year!!

Also great response from the rest based on his guesses and conclusion.

Chua Chin Leng aka redbean said...

Thank you anon 1:09. I am glad that you are impressed. It is not easy for you to understand but you finally did: )

Anonymous said...

Why?

Firstly, CPF is probably unable to afford, or should I put it nicely, cope with retirement withdrawals by those who, during their working days were fortunate enough to have bought cheaper HDB flats and thus have sizeable retirement money left to be withdrawn, after setting aside the Minimum Sum and Medisave balances. Those born in the fifties should fall into this category.

Secondly, by extending the withdrawal age to 62 and later to 65 and God knows what age down the road, and now forcing members to buy CPF life, means the retirement money is kept by the Government for good, to released in trickles, so that the Government do not have to bear the burden of taking care of them in old age.

They are slowly washing their hands off old age care, while talking about starting new programmes to help them. You know what is going to happen whenever the Government offers help. Yes, run for cover!

Thirdly, by withholding CPF payout later, the Government is, in fact, forcing Singaporeans to work to as old an age as possible. This is another way of telling the elderly that the Government is washing its hands helping them in old age in case of need, regardless of what sacrifices they made for the country when they were paid slave wages doing National Service.

They do not only shift goalpost. As Low Thia Khiang said, they just make the goalmouth smaller than the ball and there is no way you can win.