3/05/2012

Why must contribute to CPF?

Silly me, why am I asking such a simple question? You need to build up a savings to buy affordable HDB flat mah. Tiok boh? Like that also dunno. You also need to have some money for retirement right? Tiok. And you need money to pay for big and affordable medical bills when you are old lah. So simple and I have to ask. And there are other things to pay for with the CPF savings, like Medisave Insurance, CPF Life, university fees for yourself or your children and more minimum sums to top up. I think got some more. But just stop here first. Too many very confusing and can easily forget if got dementia.

How many people need to buy HDB flats at 60 years old? Kee chiu.
How many people need to have retirement savings when he is going to work till he dies when there is no retirement?
How many people need medical insurance or a huge sum in minimum sum if he is going to work till he dies when the company will have corporate insurance schemes to cover them?
How many people will have no dependents, or children to look after them, no private medical insurance, no savings and die die must depend on their CPF savings to survive?
How many people want to spend $100k or $500k for major ops at 70 or 80 or 90?

I have checked the historical records and I think the position has changed for many people. Last time happy to retire at 55 and die at 60. Last time life expectation very short but now very long. Last time married one time, now can marry a second time at 60. Last time bought HDB flat at 30 to get married. Now must buy HDB flat at 60 or 70 to get married one more time. Last time went to hospital and pay $2000 a lot of money. Now serious illness $200k also nothing except for open heart surgery. This one exception, only $8. Last time old already at 60 and die never mind. Now 90 years old also don’t want to die and want to go for major operations to live another 100 years.

Last time… now where am I? Oh, the position has changed. So you see, the position has changed. So what? Position changed because things changed lah. Changing position is a crime or what? Cannot change position huh? Last time two child enough third child punishment. Now the more the better, got incentive to have more some more. So, position not change huh? Crime or no crime? Malu or not malu when position changed? Must explain or not? So embarrassing leh, changing position never explains, and changed quietly and think people dunno.

If one is to work till death do us part, still need to save for afterlife meh? How many people want to be a rich dead man? By the way, how many people age 80 or 90 will be left that needs to be taken care of by the govt using public money? Can the govt afford or not? Wait wait, all these oldies must have contributed a lot of CPF to subsidise the govt in one way or another and what did they get in return? 2.5% and 4% interests? That’s all? How many hundred billions were parked in the CPF by the people for so little returns? Can the govt put aside some of these money or profits from the cheap loan to provide a life line for the 80s and 90s when they are penniless? Is it asking too much when these people have contributed a life time to the CPF for the govt to use?

And not that everyone will live till 80 or 90. And not that everyone who lives till 80 or 90 needs charity. Some may mismanage their lives, some may be hit by accidents or misfortunes or the cruel turns in life. Can the govt repay some kindness and charity for the CPF savings that these people have lent to the govt in their younger days and stop forcing these people to continue to contribute to their CPF after 60, and holding a huge ransom in the name of Minimum sums in the Retirement and Medisave Accounts? Why can’t the govt show some gratitude, some compassion and some sense of justice and fairness to look after those in the 80s and 90s using the money made from these people’s CPF savings over a life time? This is only right and not charity as the govt had benefited from the people’s savings of a life time. Or the govt is thinking that the money in the CPF is what the people owed to the govt and there is no need to be grateful or to repay the people for the cheap and unconditional loan? Where is gratitude?

8 comments:

veritas said...

CPF is a tool for elites to enrich themselves. Don dream of reforming it.

100 years ago for those country in gold standard, people can save their monies and sleep soundly knowing that the fruits of their labour will not only be preserved, but value will gain over time.

Today, CPF locked up by PAP, is losing value like crazy. More heinous, PAP allowed CPF to be use for property, forcing every Singaporeans to become gambler.

We are force to buy property to hedge inflation, enriching the elites. Besides, we bear the risk to property plunge wiping out lifelong savings and putting us in debt for all our working years.

Meanwhile, PAP cannot stop blaming us not living withing our means, as well as saving too less.

Notwithstanding, they are the culprit who vacuum whatever surplus wer have.

I wonder if PAP are reincarnate of Satan and his demons.

Anonymous said...

From caring party to scaring party.

Anonymous said...

They can't give u a decent interest on yr CPF.They tell u if u are so clever & think u can make more, u can use yr 'excess' CPF to invest in shares - its so bizarre ! If citizens have more than enough money & are allowed to take out to play with shares, then why not allow them to start a biz, etc - this can create more entrepreneurs, more employment opportunities, etc. Of course there will be those who as usual will say what if they lose their money & more inpt , be a burden on the state. But these people already have enough in their CPF thats why they can withdraw the excess to play with shares

Matilah_Singapura said...

redbean asked the question:

"Why must contribute to CPF?"

Short answer.

1. CPF is a TAX therefore it is revenue-positive for the state and is used for funding, investment and liquidity.

2. Tying CPF to the public housing mechanism is a great way (best in the world) of controlling the majority in the population. The majority of Singaporeans are given a "Tax Credit" to "buy" (actually LEASE) a flat from the state (at a "monopoly price" set by the state) via the statutory board called the HDB.

3. The illusion of billions of SGD's flowing round and round in this Tax + Ponzi + Socio-Political Manipulation Scheme (the best and most creative in the whole world) creates an atmosphere of WEALTH and the perception of SUCCESS.

4. At one time the CPF "tax" was around 40%! That is a huge amount of "forced savings" wich the state used to "do stuff" and reap huge returns.

5. CHEAPEST LOANS IN TOWN!INFINITE SUPPLY!
CPF is the cheapest loan available to the state. In bouts of corporate adventurism, the state invests the funds and reap 20% and more profit, and pay CPF "subscribers" 1-4% "interest".

Other corporations have to issue debentures at 6%, 9, 10% or more to attract loanable funds. Singapore government has immense power in the market! Thanks to "your" CPF, and your earned mosquito-shit interest ;-)

6. CPF is a way to fund social welfare payments for retirees without sending the cuntree into insolubility. This is done by a sort of "annuity" payment system.

All in all I totally support the CPF as a tax. It is wonderful. It is also a source of on-going "entertainment" because the majority of people still BELIEVE that the money held in CPF is somehow "their's" and that they are somehow "entitled" to it.

My prediction: The noise from the rabble and non-thinking, emotional mob will get louder. The government will throw out a small bone to all the hungry dogs....i.e. make some changes and concessions to CPF.

Because the dogs are hungry, they will relish their small morsel and think that they've "won".

...and I will be even more entertained.

Gintai_昇泰 said...

Totally agree. They are evil! Greedy and evil sucking citizens' sweat and blood money by investing our CPF savings and paying their cronies millions in salary and bonuses! When lost money in near bankrupt UBS or Citibank, they say they looking at 50 yrs down the road! Lol ! WTF!
We are all swindled stock and barrel so to speak! They are the most cruel rulers on earth!

Gintai_昇泰 said...

You are smart. Respect the way you summarize it. You speak the truth.

It's no difference with those first world countries where they call it social security or pension.

I guess the only way is renounce citizenship if you really want back your CPF money.

It seems that the govt in power for so long abt 50 yrs using the power of the huge CPF funds to perpetual their grip on power and also grow do many GLCs etc to reward the elites and cronies! Brilliant! No other country or govt in the world can beat them!

May I use some of your points with some refinements of course to write a blog. I thank you in advance!

You are so clever to see thru the maze whilst of the citizens are still not awaken yet!

Chua Chin Leng aka redbean said...

Hi Gintai,

Use whatever you need. The ideas are for sharing and you may come up with better ideas yourself.

Cheers.

Anonymous said...

Sinkies should stop giving handouts to the govt.