CPF savings not enough

‘According to a recent survey by Manulife, only one in 5 Singaporeans feel confident that their CPF savings will be sufficient for them to retire comfortably.
 
The survey, which was conducted online with over 500 respondents over the last three months, found that almost half (47%) believed that they didn't have enough CPF savings to meet even their basic retirement needs.’ Posted in TheRealSingapore
 
What to make out of this survey? The first thought, let’s make sure that the 80% would have enough CPF savings when they retired. Let’s help them! One way is to make sure that they save more. If 50% of their income not enough, make them save 60%. This should help. If not, increase to 70%. This should be easy. The second option is spend less, to stop them from buying properties that they cannot afford and at too high a price. This option may be a bit difficult to implement as all of them would swear the properties they are buying are affordable, especially HDB flats. And they will quote the ministers as the authority that HDB properties are affordable. The problem part is that the 80% most probably bought HDB flat and now say they would not have sufficient savings for retirement. Don’t ask me why. The third option, make sure they can only take out their CPF savings 5 years before they are about to die. As an example, if they are to live to 100 years, allow them to take out their savings at 95. Like that sure got enough. But problem is how to know they will expire in 5 years? Maybe can ask god.
 
Another way to look at this problem is to question what they meant by not enough? Are they thinking of living like a king, a minister, a civil servant or an ex PME? If they are thinking of living like the first 3, then even if they contribute 80% of their income to CPF also not enough. But if they think like living like an ex PME, willing to be taxi drivers until they expire, then whatever they have in their CPF, or don’t have, also got enough. Ex PMEs are more down to earth and would probably downgrade to eat in the hawker centres. They would also be happy to drive their taxis till the last day. So got or no got CPF, never mind as long as they can drive their taxis. Can’t imagine them be cleaners or security guards at 90 years old,
 
So, looks like the problem is about explanations or is it expectations. Want to eat in restaurant sure not enough. Want to eat in foodcourt maybe enough, maybe not enough. But if happy to eat in hawker centre, sure enough.
 
So, what is the problem with the survey findings? Want to tell them not enough and then help them by increasing their savings to 60% or 70%? Or want to tell them the hard truth, everything is enough if don’t buy expensive affordable HDB flats and eat in hawker centres? See, no problem right? Or shall I con them by agreeing with them that money not enough so that I can help them, to save more for the future and eat lesser now?
 
Tiok boh?
 
PS: I have not told them the secret formula…sell their homes, sure enough.

Kopi Level - Green

When should one stop saving for retirement?

Theoretically one should never stop saving for retirement if one can afford to as no one can tell how long would a person live. For practical purposes, and with statistics available, it is reasonable to say that most people would have died before they hit 90. By 80 probably 80 percent could have died. By 70 very likely 60 percent would have died too. These are just estimates but not too far from realities.
 
Under normal circumstances, people should start to enjoy their life savings about 10 years before the end of their lives. If not, what is the point of saving for retirement? Leaving it too late would mean not benefitting from their savings or leaving too much money unused when they die. Taking them out too early would likely lead to a depletion of the savings, assuming that the life savings are the only source of fund for retirement. In many cases this is not so and many don’t really need to touch their savings when they have too much money or with family support.
 
Would it therefore be reasonable for people to start to withdraw from the savings at 60? It used to be 55. Or would it be a practical thing for people to stop saving for retirement after 60? Why continue to stress on your finances and stinge on your expenses to live a bit better by not savings after 60? Those who have a lot of money to save, by all means keep saving.
 
Is it reasonable for the Govt to force the people to continue to save irrespective of their age? Why are people forced to save at 60, 70, 80 or 100 years? Is the Govt being unreasonable? No such things?
 
For people who are self employed, who need to renew their licences, they are required by law to contribute to their Medisave Accounts regardless of how old they are. There is no limitation on the age of the person. As long as the person wants to renew his licence, pay up. 100 year old also have to pay if one happens to be self employed. Why? The Govt said so.
 
And in the case of people selling their properties that they bought using their CPF savings, regardless of age, they must repay what they took from their CPF savings plus interests. So, if one is 80 and decided to sell his property, if he borrowed $300k from his CPF, he needs to repay this plus the interest, assuming 2.5% for 30 years, or 75% of the loan. The total sum to be put back into his CPF could be $525k. Why would an 80 year old person need to have $525k in his CPF account? It could be a bigger sum, and at an older age.
 
Why is this happening? No one bothers to think through it? No one bothers to amend these irregularities? Or the Govt really wants this to be the case?

Kopi Level - Green

VEP could be a blessing in disguise

Not that I think it is a good thing as it hits everyone in the pocket from both sides of the causeway. Any hike in such fees will only hurt the people, the ordinary people. The rich would not think of it as a cost thing. In fact it would be good if the fees are higher, like some suggesting the ERP charges should go up to $50 per pass so that their Merces and BMWs and Bentleys could have the roads to themselves.
 
Now a return trip is going to cost $40 or $50 daily and those that have to pay for it would become a real source of pain. For those Singaporeans who have bought homes in JB and commuting daily to Singapore will bear the brunt of these high charges. It would definitely put off people who are thinking of doing the same or relocating their factories or workshops to JB.
 
Why I say that this is a blessing is that it is a prelude to more of such to come. You can the light at the end of the tunnel. And this is just an eye opener. It is better to know what would be coming now before plunging in with all the money and cannot extricate without suffering huge losses later.
 
I hope no one has built any nursing homes for the oldies there or thinking of doing so. Now every trip to visit the old folks is going to hurt the pocket real bad. Filial piety and wanting to be near the oldies are going to be very costly if the oldies are residing in nursing homes in JB. For those who have done that, they may want to bring back their old folks as the cost of commuting would negate the comparative advantages that were there before.
 
The VEP and toll charges have eroded whatever advantages JB has over Singapore. They have leveled the playing field of cost differences. In the case of Iskandar EZ, before the hen lays its golden eggs, it has been strangled to death.
 
See the blessing in disguise? The oldies too would be celebrating as their children would no longer find it attractive to park them overseas unless they chose not to visit them too frequently.

Kopi Level - Green

What are you doing America?

Below is part of an article by:
June 8, 2013. Source: Michael Snyder, Guest Post

In future China will employ millions of American workers and dominate thousands of small communities all over the United States. Chinese acquisition of U.S. businesses set a new all-time record last year, and it is on pace to shatter that record this year.

The Smithfield Foods acquisition is an example. Smithfield Foods is the largest pork producer and processor in the world. It has facilities in 26 U.S. states and it employs tens of thousands of Americans. It directly owns 460 farms and has contracts with approximately 2,100 others. But now a Chinese company has bought it for $ 4.7 billion, and that means that the Chinese will now be the most important employer in dozens of rural communities all over America….

Last year a Chinese company spent $2.6 billion to purchase AMC entertainment – one of the largest movie theater chains in the United States. Now that Chinese company controls more movie ticket sales than anyone else in the world….

Golden Dragon Precise Copper Tube Group, Inc. recently broke ground on a $100 million plant in Thomasville, Alabama. Many of the residents of Thomasville, Alabama will be glad to have jobs, but it will also become yet another community that will now be heavily dependent on communist China….

Detroit. Chinese-owned companies are investing in American businesses and new vehicle technology, selling everything from seat belts to shock absorbers in retail stores, and hiring experienced engineers and designers in an effort to soak up the talent and expertise of domestic automakers and their suppliers…. China is actually mining for coal in the mountains of Tennessee. Guizhou Gouchuang Energy Holdings Group spent 616 million dollars to acquire Triple H Coal Co. in Jacksboro, Tennessee…. And pretty soon China may want to build entire cities in the United States just like they have been doing in other countries. Right now China is actually building a city larger than Manhattan just outside Minsk, the capital of Belarus….
 
When you total up all imports and exports, China is now the number one trading nation on the entire planet.
 
# Overall, the U.S. has run a trade deficit with China over the past decade that comes to more than 2.3 trillion dollars.
# China has more foreign currency reserves than anyone else on the planet.
# China now has the largest new car market in the entire world.
# China now produces more than twice as many automobiles as the United States does. After being bailed out by U.S. taxpayers, GM is involved in 11 joint ventures with Chinese companies.
# China is the number one gold producer in the world.
# The uniforms for the U.S. Olympic team were made in China.
# 85% of all artificial Christmas trees the world over are made in China.
# The new World Trade Center tower in New York is going to include glass imported from China.
# China now consumes more energy than the United States does.
# China is now in aggregate the leading manufacturer of goods in the entire world.
# China uses more cement than the rest of the world combined.
# China is now the number one producer of wind and solar power on the entire globe.
# China produces 3 times as much coal and 11 times as much steel as the United States does.
# China produces more than 90 percent of the global supply of rare earth elements.
# China is now the number one supplier of components that are critical to the operation of any national defense system.
# In published scientific research articles China is expected to become number one in the world very shortly.
 
And what are the Americans doing? Signing military pacts, conducting war games, engaged in warfare, sanctions and threatening nations with wars and regime change. The Empire is only interested in war.

Kopi Level - Green

Eugene Tan and Roy Ngerng not selected as NMP

This is the new talk of the town. For Roy Ngerng, the writing was on the wall and is a non event. For the effable professor, many have kind words for him and would consider him worthy of a second term. His dropping is sending all the jaws dropping as well. For all the NMPs, Eugene is one that has made the most impact in Parliament, dedicated, consciencious, and I think perfect attendance. He is like the teacher’s pet, the class monitor, everything exemplary. Everyone is expecting him to be rewarded with another term.
 
Well, he was not in the new team. Why? Did he not say or do the right thing as a NMP? Many people are asking why such an industrious NMP was dropped? He is about everything that you can ask for in a NMP.
In my view he is deserving of better things. He is good enough, or many times deserving as an MP. The alternative parties should queue up to make their pitches to him to bring him on board. For sure he would not be absent from Parliament sessions. For sure he will take his job as an MP seriously. But these are not the only thing good about him. He has a good mind and a very decent man. At least that is my impression of him as I did not know him personally.
 
Oh, maybe he is being dropped but already invited for tea and would be slated as the next candidate. Now, I would say this is a good reason to drop him from being an NMP.

Kopi Level - Green