HDB prices are affordable based how the ability of the buyers to pay.
Now the affordability is a couple’s monthly CPF contributions for the
next 25 years. This means that whatever that goes into the CPF will go
out the other way, to pay for the affordable HDB flat. The couple would
likely to start to save a little 5 or 10 years after buying a flat when
their incomes rise. How much savings could that be to go into their
retirement account?
Then there is the Medisave Accounts to fill up and at current rate, more
than $100k will have to be set aside as untouchable in the Medisave
Minimum Sum Account. Technically there could be nothing left to be set
aside for the Retirement account at least after the flat is fully paid
in 25 years time.
By the age of 55 or 65 the CPF Life Scheme will kick in and whatever
money left in the CPF would be compulsory acquired to pay for their
retirement annuities. Luckily the Medisave Account is still untouched by
any compulsory scheme, but not for long. The money in the Medisave
Account will be compulsorily acquired too to pay for Medishield Life
once the scheme is finalized.
The net effect of the two compulsory schemes means that the Govt has
decided for you how your money must be spent. In the CPF Life which is
an annuity scheme, there is still hope of getting something back if one
lives long enough.
In the case of Medishield Life, it is paying and nothing is coming back
except when one needs hospitalization or is seriously ill and provided
the illness is covered by the scheme. Read the fine prints and the
exclusion clauses carefully.
The Govt effectively has a hold on the CPF savings of its citizens
through a monopoly public housing scheme that will feed on the savings
of its citizens for the first 25 years and a CPF Life for the next 30
plus years. As for the Medishield Life, this is still work in progress
and the payment into this scheme could come very early, maybe from the
day one starts working and contributing to the CPF.
The best part, the Govt can decide as and when how much to raise the
premiums and compel the people to pay. There is no opting out.
Resistance is futile. You earn and save and the Govt will be the
recipients in a way, helping you to spend your savings.
Your money is not your money anymore. The Govt knows how much you have
and can afford to pay and the three items will effectively absorb
practically every cent there is available or affordable with hardly
anything left. This is a very efficient system to manage the people’s
income/savings by the Govt, with compulsion, and the people are
literally left with no choice of their own.
The Govt is caring for the people, to their last day and managing their
last cent without having to ask the people for their consent. Our CPF
savings are now absolutely safe with the Govt.
And one good thing, there would not be any more scheme to manage your CPF savings after this.There is nothing left to be managed anymore.
RB, most people believe that cpf money belongs to them. Not knowing that its a citizen tax as foreigners do not have this tax. The government is very caring as with this tax, it can be used to prepay 99 years of rental. The government is very kind to convert medisave into medishield plus as many sinkies medisave is not enough to pay for the world class medical treatment. To help the citizen, it pools everyone medisave into the medishield to help the citizens.
ReplyDeleteI think one get piss off only if one treats cpf as their money which was true in the past. Example many sinkies have used cpf to buy freehold properties and took out the cpf when they reached 55 and spend the money as they like. But the nature of cpf has changed into a tax structure. As long as sinkies accept that it is a tax and like the Nordic countries with high taxes, the government provides cheap subsidized housing and medical, we are now in the same situation mah.
You just need to do a mental switch and you will be happy that the government now provides subsidized housing and medical. Tio Bo. So no need to kpkb anymore. So you tell me lar my analysis correct or not?
"The best part, the Govt can decide as and when how much to raise the premiums and compel the people to pay."
ReplyDeleteRB
This is because the Govt has a mandate every 5 years from at least 60% Sinkie voters to do this.
So this mandate is what really matters, tio bo?
So why don't those interested parties do and achieve what really matters?
Why they want to kpkb in blogs, at Hong Lim Park and where not? Does it really matter?
If you really want to have a peaceful and wonderful life especially in this MEGA UNCERTAIN WORLD is not difficult!
ReplyDeleteLEAD A SIMPLE LIFE..........
Never mind people around you are living in big or expensive houses, driving big cars, the usual "C"s....... Ask yourself.....so what!...... NEVER FOLLOW THEM!..... WHY CHASE after these things? .... You do not know other stories they are facing...........
NEVER never never stretch yourself into paying many DEBTS and over a looooooooooong period.
May God help you lead a PEACEFUL AND WONDERFUL LIFE!............CHEERS...
Actually Sinkies should try to achieve to have lots more money in their bank account rather than their CPF account.
ReplyDeleteBecause the CPF account contribution is calculated on a monthly income ceiling of $5K only.
Whereas the sky is the limit for take home income or profit (if the Sinkie is doing business) and the surplus will go to the Sinkie's bank account which can be withdrawn or use anytime the Sinkie wants.
And this is what really matters.
So Sinkies must learn to achieve things that really matters.
Don't feel rich if you see your CPF account, because it may not really matter, if you can only see but cannot touch, tio bo?
9.11am, AiyaI people that went to hong lim park to protest and kpkb in blogs are the 40% minority lar as they don't understand the intention of a good government who may be not so good in communication that lead to lots of unhappiness . To add to the first post, don't forget with the high taxes, the govenment also provide a life long pension of at least enough for u to eat at the hawker centre hor.
ReplyDeleteSo for the high cpf taxes, you get prepaid 99 years rental more than enough for anyone natural life, lifel long medical and pension, what more do you want? Tell me lar, the government first class or caring or not?
KNN, I leading very simple life but people keep taking my CPF savings away to spend on my behalf. Now I got savings like no savings.
ReplyDelete9.42 am, wake up lar as cpf is a tax not your saving mah. The earlier you can accept, the happier u will become. No need to kpkb, Tio Bo? Knn, I already wrote off all my minimum sum already and I am a happier person since then. Bo bian mah Tio Bo?
ReplyDeleteMaybe CPF money is your money for which the PAP gahmen has painted a bull's eye target on.
ReplyDeleteMaybe it is your money that the PAP gahmen is targeting to take from you.
And maybe the PAP Minister who can take the most CPF money will the next PAP Prime Minister.
If CPF money is actually a tax.
ReplyDeleteThen Singaporeans pay a very high tax rate.
Like Nordic countries.
But standard of PAP Minister is only 3rd world standard?
Not Nordic level yet.
So maybe then our PAP ministers are overpaid?
redbean:
ReplyDelete>> The Govt effectively has a hold on the CPF savings of its citizens through a monopoly public housing scheme that will feed on the savings of its citizens for the first 25 years and a CPF Life for the next 30 plus years.
Fantastic scam, I mean scheme. But the people have also benefitted. Those who got in "early" , say in the 1970's when HDB was around 40k, have benefitted through the years, pocketing the profits from numerous "upgradings" and the great COV (cash over value) "culture". Now these folks have HDBs worth half mil or more and going up, plus the govt upgraded the estates. Please lah redbean, millions of people benefited. Those who emigrated and relinquished citizenship pocketed profits from sale of their HDB PLUS "their" CPF.
>>As for the Medishield Life, this is still work in progress and the payment into this scheme could come very early, maybe from the day one starts working and contributing to the CPF.
This is going to be another variant of a Ponzi Scheme. No need to guess. It is the ONLY WAY to fund this type of "insurance".
>>The best part, the Govt can decide as and when how much to raise the premiums and compel the people to pay.
You are right. It is the BEST PART. This ensures that the funds will be sufficient. If more demands are put on the system, more funds are required. The govt has no choice but to FORCE people to pay, and that is a GOOD THING, or else the whole darn thing will collapse and get into such a deep financial hole the govt will have to BORROW to bail it out.
If there is a monoply on "insurance", then you are going to get monopoly pricing. The best thing to do is open up the market for insurance to allow competition.
That probably will happen, but not in the near term. Like I said before, MediShield will probably follow the model of the Australian MediCare system -- some government funding via tax plus private insurance company by "voluntary" participation, with subsidies and rebates, and PENALTIES for opting out.
Rest assured, everyone will be paying for this. There is no escape :-) You want government help? Now you're going to get it :-))
Millions benefitted? Really? When one only needed to pay $40k for a semi D with a $3K monthly income, today you will need a $20k income to think of owning a semi D.
ReplyDeleteOur money is so plentiful that soon it will be good enough for burning.
@redbean:
ReplyDelete>> Millions benefitted? Really?
Of course, really -- as in 'objective reality'.
Check the stats
The data don't lie. However humans will use their human brain to process the data, which is first filtered through their preconceptions, biases and other cognitive aberrations .
In the 1970s, a graduate’s starting pay was around $1,000 per month. Then, in HDB Marine Parade Estate, prices of 3-room, 4-room and 5-room new flats were $17,000, $20,000 and $35,000 respectively. By 1990, the average price of 5-room new flats was $70,000. Such prices then reflected a “cost-based” pricing approach.
ReplyDeleteNow, graduate starting pay is three times higher than in the 1970s, but prices of new similar HDB flats have gone up 10-30 times.
These massive price hikes are largely due to the HDB switching over to a “market-based” pricing approach, following the 1994 property bull run.
In 2007, the HDB finally confirmed that “the prices of new HDB flats are based on the market prices of resale HDB flats, and not their costs of construction”.
In 2000, the total break-even cost for a 5-room new flat was an estimated $120,000.
Source: Counterpoint: HDB contributing to price spiral
Because of the "market based approach", many people who got in early -- i.e. BEFORE the market based approach -- did very well for themselves.
Like I said. The data do not lie.
People must learn to stop voting for any party that gives the people No Choice. No choice = not democratic = a breach of the constitution = felony. Agree?
ReplyDeleteVery soon and we will see those insurance firms directors upgrading their houses, yachts, mistresses etc all at the expense of the poor tax payers.
ReplyDeleteUnfortunately, the people like the gov to treat them like the atm machines, anyhow just come out with schemes to missell them.
ReplyDelete'case has cast a spotlight on how disconnected many of China's Communist party leaders are from ordinary citizens, squirrelling fortunes away in overseas investments and sending their children abroad to study.
ReplyDeleteBo's family is said to have amassed immense wealth, owning property in France, Britain and the United States.'
Sounds familiar?
Morale of the story: all politicians are corrupted. the key is to vote for the lesser of two evils.
Bo Xilai and his family had bought properties overseas in France, UK & the US.
ReplyDeleteDo our Sinkie Rulers do the same as well?
All nations should disallow their rulers n their succeeding two generations(children/grandchildren) from emigrating to foreign lands.