11/08/2014

Why need so much in CPF Minimum Sum Schemes?




Below is quoted in a post in TRE on Gerald Giam’s question on the CPF Scheme in Parliament and a reply by Tan Chuan Jin.

Mr Tan Chuan-Jin: Most seniors have various sources of financial support in retirement. Based on the findings of the latest Household Expenditure Survey, a retiree household in 2012/2013 received $1,740 of non-work income on average a month. The sources of income include monthly payouts from CPF, contributions from family members, rental income and investment income. Results from the National Survey of Senior Citizens 2011 also indicated that about two-thirds of senior citizens received income transfers from their children.

Many of our seniors today also have savings in their housing assets which have appreciated significantly. A typical retiree household who owns a three-room or a four-room flat has $300,000 or $400,000 worth of net equity in the flat respectively. The Government has introduced schemes such as the Lease Buyback Scheme (LBS) to provide Singaporeans with additional options for unlocking the savings in their flats to supplement their retirement income if they wish to do so. Seniors who have other forms of financial support might not see the need to take up LBS, or they may choose to move to a small flat or rent out rooms in their flats instead.

Exactly, most seniors have other forms of income and financial support. The CPF savings is only one of these supports. Why is there a need to compel all the seniors to keep so much money in the CPF like ‘dalit’ money, untouchables? From the huge numbers, the statisticians must have used the premise that this is all the money needed for a senior to live on. This is false, a great flaw in assumptions. Many seniors not only do not need to depend on their CPF savings, many have more to spare and did not have to rely on their CPF savings. Ask the rich, the elites, and the ex ministers and political appointment holders.

There is no need to imprison the money of all the seniors in the CPF. I quote, ‘Most seniors have various sources of financial support in retirement.’ So, what is happening? Head I win tail you lose argument? When is the govt going to review the CPF Schemes and return the money to their rightful owners?

Listen to the insurers, everyone must have more than $1m in savings when they retired. How many people have $100k in savings when they retired? Are they going to starve to death? When don’t they say everyone must have $10m to live like a king?

Return Our CPF.

Kopi Level - Green


10 comments:

Raymond said...

If seniors have other forms of financial support, they can very well treat CPF as a reserve and leave it alone.

The beauty of the CPF MS scheme is that it provides a safety net for those who do NOT have other forms of financial support.

Take a circus tightrope analogy.

Just because *most* performers can cross a tightrope without issue most of the time does not mean there is no need for a safety net underneath.

People do fall off now and then. What then? Just let them die? :)

Anonymous said...

What about young people with money in CPF, ... who cannot use it to pay for their hospitalization bills?

"People do fall off now and then. What then? Just let them die? :) "

Anonymous said...

What about people who need money to eat today? What about people who need money to pay medical bills to day?

Let them die?

Ⓜatilah $ingapura⚠️ said...

Frankly I think the minimum sum is too small. The government should raise it in excess of at least $200k.

Hello govt...are you listening: RAISE the cpf minimum sum :-)

In that way we can enjoy more entertainment from Hong Lim Park. People will focus so heavily on their pathetic cpf and ignore "living in the moment", which means more FUN for people like me.

Got "victim mentality" yet?

Anonymous said...

Chuan Jin in my personal opinion is quite a useless minister. As for the necessary CPF. I am sure you can count on the support of Raymond. Along with Potemkin village sites like five star and the moon and Singaporedaily.

Darkness 2014

Anonymous said...

Yo Sneaky Raymond is back from obedience school. They must have released him early for good conduct.

See if he is still a gangster and threaten RB once more.

Jayson said...

CPF minimum is for subsistence. It is the bare minimum to survive based on current cost of living.

Look. If you work your whole life and cannot save enough for subsistence, then frankly you are a bit shitty isn't it?

If you are so shitty, why should government trust you to manage all your money?

Anonymous said...

"If you are so shitty, why should government trust you to manage all your money?"
November 09, 2014 12:00 am

Because it's OUR money.
Not the PAP government's money.
Maybe we should also not let Temasek and GIC manage Singaporeans' money.

Anonymous said...

This govt is attracting a lot of bootlickers and smart alecs who think they are the best and the rest of the people are silly, hopeless and useless and need to be replaced.

They did not see themselves failing and on the wrong side of the divide. The lucky thing is that they would not be on the wrong side as they would go with the flow, jump ship when the time comes.

b said...

Even if pap loses the election, the cpf will not be returned. Ministers, whatever their parties, are mafias in disguise.