2/20/2012

The minimum sum straight jacket solution

The minimum sum to be kept by the CPF will increase from $123k to $131k this July. This is based on a person reaching the age of 55 and a retirement income when he hits 65 for life?

The assumptions:
1. At 55, the person only has his CPF minimum sum to live on.
2. He has no family support or filial children to give him pocket money.
3. He stops work at 55.
4. He needs a certain amount to live on as prescribed by the minimum sum.
5. He lives to 80 or 90.

How many of the assumptions are true? What about those with their own savings, flats and children to look after them? What about those who continue to work to 65, 70 or older? Do they still need the magical $131k that will balloon every few years? Do they need $100k or more when they are already in their 70s or 80s? How much do they really need when all they want to do is to stay at home and watch TV? How many of them will live past 60 or 70?

Should not the minimum sum be graduated downwards when a person is economically active, with family support, with savings and properties to live on? Why is this straight jacket sum be imposed unilaterally on everyone? How many people who live past 70 need public assistance and can the govt afford to give them 3 meals in a public nursing home?

16 comments:

Anonymous said...

No need minimum sum if one is to work till death.

Matilah_Singapura said...

People are going to be different. Some may need the money, some will live long lives. Everyone is an individual, however central-planned policies treat everyone as "the same" and impose stupid rules on everyone.

As I have said before, however you define CPF, the so-called money in there IS NOT YOURS. The fact that the govt can withhold what is "supposed-to-be-yours" is proof positive that the sum in the CPF account in your name IS NOT YOUR MONEY.

Still don't agree? I'm not surprised. The majority of Singaporeans are still under the illusion that CPF "means something". Get fucking real, CPF is a tool of manipulation.

The only way you force the govt to cover-up the illusion is if you renounce your citizenship, and demand "your" money. The govt has no choice but to pay you. If they don't, that would be the final proof that none of the money in your name in CPF is actually yours.

Like it or not Singapore is a meritocracy -- which means it is natural that some people will "succeed" and others will "fail", but the majority will do "ok".

Expecting the govt to look after you when you are old is a fantasy. Everyone gets old -- if they're lucky. You expect the govt to intervene in a process which everyone accepts is going to happen?

Get fucking real.

CPF == not your money. Shut up, man up, deal with it and go make some real money of your own.

Anonymous said...

Should not the minimum sum be graduated downwards when a person is economically active, with family support, with savings and properties to live on?

Another form of mean test?

Anonymous said...

The people are no fools. And the supertalents better don't treat them as fools.

Anonymous said...

When the MRT breaks down, sinkies get damned pissed off , but when PAPPY tries to pull wool over sinkies' eyes with CPF tricks , how come there is no uproar from the sinkies ?? You know why RB ? Sinkies have been blinkered too well by the PAPPYs.

Anonymous said...

If the government takes your suggestion, HoJinx will have to own up that she do not deserve her pay with a bankrupt or near bankrupt SWF.

Saycheese

P.S. I don't know if it is bankrupt or not as it is not transparent.

Gintai_昇泰 said...

I'm coming to 49 yrs. By the time I reach 55 yrs in 6 yrs assuming I can live till 55 yrs, the min sum will be ard $150K definitely more than the current $131K. But my pay still remains the same. It nvr changed for so many yrs. whereas the min sum keep increasing!

How many ppl when reach 55 yrs will have CPF of more than $150K? This doesn't include the around $40 to $50K of medisave by then. In other words almost all Singaporeans will not be able to collect hard currency from their own COF account when they reach 55 yrs. Unless you choose to migrate by giving up your citizenship then you can cash out all your hard earned CPF. If you want to live and retire in Sg no way to collect your CPF money. It will be locked up forever. You only get to see the annual stmt of your paper value.

Is it right and proper? By using laws to keep changing the min sum and medisave to ever higher levels when our pay is stagnant so to deprive us of our own hard earned money - Is it morally acceptable? Is it justifiable? You know so many of us are so bitter about this. This bitterness will lead to more hatred! Really langgar!

Chua Chin Leng aka redbean said...

The daft Sinkies cannot let their money be taken away from them and just keep quiet about it. If the govt does not change this policy to return the money to the people, then the people should consider changing the govt comes 2016.

Anonymous said...

At this rate , for those who still have legs and arms , start planning on migrating to cash out or start to consider solution up north as per $8 CABG khaw peh cow bu.

Matilah_Singapura said...

@Gintai 921:

>> Is it right and proper? By using laws to keep changing the min sum and medisave to ever higher levels when our pay is stagnant so to deprive us of our own hard earned money - Is it morally acceptable? <

"Morality" is not a matter for the state, therefore I doubt whether such a question can be answered in reality.

The state is about ruling by law, enforcing law whenever necessary. Laws have little to do with morality -- sometimes they just happen to do, at other times it would seem that laws are immoral.

The use of law is "proper". Whether it is "right" is a matter of opinion.

I fully support the CPF system in Singapore. It provides the govt with an awesome source of funding which they tap to make an awesome Hotel Singapore which I highly enjoy visiting.

Chua Chin Leng aka redbean said...

I too will support the CPF system if they park some money with me to invest for them.

Matilah_Singapura said...

Unlike you, I am less complicated:

I don't require any "special conditions" to support CPF. Just the way it is will do fine for me. ;-)

Matilah_Singapura said...

P.S. It is impossible to expect to get "your money" (?!?) if you are a baby boomer.The reason for raising the minimum sum (yes, $1 million minimum is good!) so that they can keep "your money" (?!?) is so that a CASH CRISIS is avoided.

Think about the term "bank run". When a bank run happens, the bank collapses as it runs out of cash.

If CPF had to pay out baby boomers, it'll probably run out of cash, or put a BIG FAT DENT in the funding of Temasek, GIC, alleged bribery and corruption etc.

That would be very bad for my favourite hotel. I don not wish to see any collapse. I would be very sad, as my level of FUN would decrease :-((

Chua Chin Leng aka redbean said...

You cannot cheat the people all the time.

In the first place if the money is carefully managed with prudence, there should not be a bank run when it is time for the savers to withdraw their money.

Matilah_Singapura said...

redbean, you live in your own little world of "should's" and "ought to's".

When you feel you are ready, please come and join the rest of us in a world of "is's"...i.e. it is what it is, if it quacks and walks like a duck, it probably is a duck.

Chances are people are going to get a nice "lesson" when it comes to CPF.

As I always say, you can't cheat an honest man -- i.e. if you were "dishonest" enough to believe that CPF will be looking after you during retirement, then you deserve a corrective "lesson".

Chua Chin Leng aka redbean said...

There are dreams, hopes, aspirations and of course realities. Realities only become realities when dreams, hopes and aspirations are fulfilled.