CPF money is your money

[dragon888]

THE Manpower Minister put up a stout defence of the Central Provident Fund (CPF) system yesterday, amid criticisms online of Singapore's national pension fund.

Without naming anyone, Mr Tan Chuan-Jin hit out at those who labelled the system a scam and who described the Minimum Sum as a ruse to stop Singaporeans from withdrawing their savings.
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Such allegations are untrue, he said, highlighting that many Singaporeans are already using their CPF monies for properties and health care.

"Money in your CPF account is your money," he said, adding: "Many of us are already using our CPF monies to fund expenses that would otherwise have come from our disposable income."

He paid extra attention to the CPF Minimum Sum and explained why it has been increasing annually since 2003.

He pointed out that Singaporeans are living longer and, with inflation, the $120,000 target set in 2003 translates to a higher figure today.

"The Minimum Sum is increasing because we are living longer so we need to spread out our payouts," he said.

The Minimum Sum is now $148,000 and it increases to $155,000 from July 1. It is set to go up again in July next year and the amount has not been determined.

The Government has not projected any increases after 2015.

In his blog, Mr Tan also sought to dispel misperceptions about the Minimum Sum.

While those who reach 55 can withdraw a portion of their CPF savings after setting aside the Minimum Sum, those who do not meet it will not have to top up the shortfall in cash, he said.

The Government will help these vulnerable Singaporeans, he promised.

Half of CPF members are able to meet the Minimum Sum now, compared with a third five years ago. And the proportion will jump to between 70 per cent and 80 per cent over time, said Mr Tan, pointing to a local university study.

Overall, the CPF system is a good and fair one that is "a more sustainable system than most other retirement schemes... (and) CPF funds are absolutely safe", he said.

His strongly worded blog post came less than a week after the Ministry of Manpower pledged in its addendum to the President's Address that it "will enhance retirement adequacy to give greater assurance and peace of mind to all Singaporeans", and on the back of questions online on the CPF system.

Human resource expert David Leong said it is timely that the Government came out strongly to defend the CPF system.

"It is important to assure Singaporeans that the CPF system is a sound one," he said. "It is a key institution which affects all Singaporeans."

He added: "There cannot be any unanswered questions on the robustness of the system because it affects public confidence."

As Mr Tan said: "Let me state that the CPF is put in place to help Singaporeans have peace of mind when it comes to their retirement years.

"With increasing longevity, it has become even more important to help Singaporeans sustain their retirement adequacy for longer."
- See more at: http://business.asiaone.com/news/cpf....MYP0vJxS.dpuf

http://business.asiaone.com/news/cpf...says-chuan-jin

wah....so must thank for the clarification.....of cos is my money....just that I cannot spend as and when I like...and must follow a lot of rules and regulations only lah.......

[globalcookie]

Saying this is not enough. Some of us already understand, but many doesn't.

They have to explain further, in more layman terms, how the whole CPF works (yes, info is there in the website but there are Singaporeans that needs to be given info on a plate). Explain why most ppl will be able to meet the minimum sum, when ppl will start withdrawing, why is it really good to be on the annuity plan.

A few of us explaining from our understanding, is not enough, as there will be other negative voices that will drown info. Minister level ppl coming out to explain, and publish it even on CPF website, could work better. After all, when the authority speaks, it is more convincing.

[KAO LUO]

ha ,, they know money belong to us ....return us .. why need to change n change a law ,

govt scare us go hock li por to take $$ every months ...... ha....

[streetsmart73]

diew gau hui

me cannot read meh, must need one toy general to repeat the load of crap

[KAO LUO]

Originally Posted by streetsmart73

diew gau hui

me cannot read meh, must need one toy general to repeat the load of crap

i cannot read ..... i only know when old no $$ go hock li por to collect $$ from govt one mouth $200..

[streetsmart73]

Originally Posted by KAO LUO

i cannot read ..... i only know when old no $$ go hock li por to collect $$ from govt one mouth $200..

kl, what is "hock li por"?

is it something social welfare organization in hokkien hoh

[KAO LUO]

Originally Posted by streetsmart73

kl, what is "hock li por"?

is it something social welfare organization in hokkien hoh

,,,,,,,,,,,,,,,, yes

[lenghan]

If the system was so transparent as the govt had always preached, then why NEED TO EXPLAIN and EXPLAIN and EXPLAIN.
This goes to show that it is not that transparent after all, otherwise all ordinary citizens should have been able to understand, or is it that the system is so complex that we must be reading all the fine text to understand?????

[globalcookie]

Not that it's hard to understand, it's how many ppl bother to try understand.

Thing is, when negative perception sets in, ppl don't try and find out, but everything that comes out from PAP is negative.

When I look at the whole Minimum Sum and Retirement Account matter with a neutral mind, the info were quite there, not hidden nor appears like anything deceptive.


It's discussed here.
http://www.arofanatics.com/forums/sh...rement+account

[Ong88]

Originally Posted by streetsmart73

kl, what is "hock li por"?

is it something social welfare organization in hokkien hoh

Kwangtung hai kiu
fock lii poeh.