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27-05-2014, 04:40 PM
An honorable member of the Coffee Shop Has Just Posted the Following:
3) Why is minimum sum still a bridge too far?
If, according to the Ministry, 50% of “active CPF Members” cannot meet the minimum sum (needed for a semi-decent retirement) today, then the CPF scheme has failed to provide for Singaporeans. The burden for the shortfall may have to fall on the G’s current account, which means taxes.
With a 50% success rate, might we have been better off trying to implement a national pension plan funded by taxation? Trade one drawback with another? We could have a whole other debate about what really causes national pension funds to succeed or fail.
If CPF is the backbone of our national retirement plan, then I’d say that an estimate of 70% is pretty dismal. 50% is a nightmare. This is for basic living standards here, and mind you, CPF payouts don’t increase with inflation. $1,200 may seem decent today, but what will it buy when my dad turns 85?
Looks like the minimum sum is best used as an indicator of how screwed you will be if you stop working now.
http://doulosyap.wordpress.com/2014/...-cpf-blogpost/ (http://doulosyap.wordpress.com/2014/05/26/our-money-minding-the-gaps-in-moms-cpf-blogpost/)
Click here to view the whole thread at www.sammyboy.com (http://sammyboy.com/showthread.php?182551-It’s-“my-money”-with-a-long-long-list-of-caveats-amp-miles-of-fine-print&goto=newpost).
3) Why is minimum sum still a bridge too far?
If, according to the Ministry, 50% of “active CPF Members” cannot meet the minimum sum (needed for a semi-decent retirement) today, then the CPF scheme has failed to provide for Singaporeans. The burden for the shortfall may have to fall on the G’s current account, which means taxes.
With a 50% success rate, might we have been better off trying to implement a national pension plan funded by taxation? Trade one drawback with another? We could have a whole other debate about what really causes national pension funds to succeed or fail.
If CPF is the backbone of our national retirement plan, then I’d say that an estimate of 70% is pretty dismal. 50% is a nightmare. This is for basic living standards here, and mind you, CPF payouts don’t increase with inflation. $1,200 may seem decent today, but what will it buy when my dad turns 85?
Looks like the minimum sum is best used as an indicator of how screwed you will be if you stop working now.
http://doulosyap.wordpress.com/2014/...-cpf-blogpost/ (http://doulosyap.wordpress.com/2014/05/26/our-money-minding-the-gaps-in-moms-cpf-blogpost/)
Click here to view the whole thread at www.sammyboy.com (http://sammyboy.com/showthread.php?182551-It’s-“my-money”-with-a-long-long-list-of-caveats-amp-miles-of-fine-print&goto=newpost).