Breaking News: Judge orders SDP leader, Dr Chee Soon Juan, and his sister, Ms Chee Siok Chin, to pay PM Lee and MM Lee damages totalling $610,000 for defamation.
Leong Sze Hian / Columnist
In the Channel NewsAsia report, “Labour chief says Singapore’s slide into recession unavoidable” (Channel NewsAsia, 11 October 2008), NTUC Chief Mr Lim Swee Say was reported as having said the following:
“Every month, when I receive my CPF statement, I feel so rich and the best part is, I know the CPF money won’t run away. CPF will still be around for a long, long time to come… Not only is it earning good interest, my capital is protected.”
First of all, I think the CPF Board issues CPF statement half-yearly, and not monthly. Or perhaps Mr Lim checks his CPF statement – diligently – online every month. But if he did, he shouldn’t have used the word “receive”.
Lets take a closer look at the CPF and see if it would make other Singaporeans, besides the minister, feel “rich” too.
Lesser, later?
I refer to the article “Easier to top-up loved one’s CPF” (Today, Sep 17).
Whilst I applaud the changes to encourage Singaporeans to top-up their CPF for retirement, other changes to the CPF may deter some from contributing more to their CPF.
Also, with the tax relief remaining at $7,000 per year, some may inadvertently top-up more and lose out on the tax reliefs that may otherwise be available if one staggers the top-up over the years.
Minimum Sum = minimum sum at retirement?
In this connection, the CPF Minimum Sum (MS) has been increased to $ 106,000, on 1 July 2008, and the phasing out of the MS 50 per cent withdrawal rule will start from 1 January 2009.
By 2013, the MS would have increased to $ 120,000, and the Medisave Required Amount (MRA) to $ 25,000.
This means that CPF account holders with less than $ 145,000 in 2013, can only withdraw $5,000 at age 55.
*($ 120,000 CPF Ordinary Account (OA) + Special Account (SA), plus $ 25,000 MRA)
Those who do not meet the MRA will be required to transfer any OA/SA in excess of the MS, to meet the MRA.
According to the Longevity Insurance Committee (LIC), 60 per cent of CPF account holders are projected to have at least $ 67,000 in their CPF OA and SA in 2013, and 25 per cent are projected to have less than $ 40,000.
Therefore, how many are expected to have less than the MS + MRA requirement of $ 145,000 in 2013 ?
Will more Singaporeans be financially stressed from age 55 to 65, which is the deferred CPF life annuity starting age, under the new CPF life scheme ?
Why increase minimum sum by 6.4% per cent?
This year’s MS increase from $ 99,600 to $ 106,000 is an increase of $ 6,400 or 6.4 per cent. In previous years, the increase was also about $5,000 per year.
Since historical inflation in Singapore is only about 2 per cent, why has the MS increased by 6.4 per cent ?
According to the LIC, the MS in 2013 is projected to be $ 134,000 after adjusting for inflation.
So, is the MS $ 120,000 or $ 134,000 in 2013 ?
At its current rate of increase, does it mean that Singaporeans like my daughter, who is 23, may only be able to withdraw $ 5,000 when she reaches 55, as the MS may have increased to about $ 280,000 by then ?
After using CPF for their HDB flat, how many Singaporeans will have more than $ 280,000 in their CPF when they reach 55 ?
How much will the MRA be by then – about $ 105,000, at its current quantum of increase at $2,500 a year ?
So, will the MS and MRA for my daughter be about $385,000 when she is 55?
Selling properties
From next year, there will be a change in the policy on the sale of property by those age 55 or older.
The CPF plus accrued interest will have to be returned to one’s CPF account to make up any CPF Minimum Sum (currently $105,000) shortfall.
So, particularly for lower-income Singaporeans who may have to downgrade their HDB flat to monetise the value of their HDB flat for retirement, there may not be sufficient funds available to buy a smaller flat, as any Minimum Sum shortfall may reduce the net flat sale proceeds available.
So, how many Singaporeans will, as the minister without portfolio does, feel rich when they are in their old age?
———
HELP keep the voice of TOC alive!
If you like this article, please consider a small donation to help theonlinecitizen.com stay alive. Please note that we can only accept donations from Singaporeans. Thank you for your assistance.Do you have a flair for writing? Volunteer with us. Email us your full name and contact details to theonlinecitizen@gmail.com
Getting the minimum sum is heavily dependent on the long term CPF interest rate maintaining at 4%. If and when it falls below that rate, there could be a significant number who may not even reach the minimum sum.
i wonder why the people up there always like to talk cock. not anymore. you see i realise that it is simple: if they earn $3 million a year and you earn less $0.02 million (or $20,000) a year, surely their world is in the ivory tower is different from yours.
When the economy was good in 2006 and first half of 2007, our leaders refused to fully restore the employer CPF contribution rate. Instead our leaders went the opposite direction by allowing any Tom, Muthu and Xiao Zhiang to work here, thereby depressing our wages.
We took severe pay cuts in 1997/8 and 2001, but when times were good, the govt forgot about our sacrifices. What kind of social pact is this???
50) gemami on October 14th, 2008 8.56 am
Hey gemami, now you know why my nick is tiredsingaporean huh! Been doing alot of calculating some 10 years back still could not get the figure right, damn it!
The actual quote was: ”The best part is, yah, I know the CPF money won’t run away. CPF will still be around, ah, hopefully, for a long long time to come, not hopefully lah, for sure lah, for long long time to come, you know.”
What you mean by hopefully har? Let something slip issit?
And with the upcoming recession, the typical sg solution would be to cut employer’s cpf contribution to boost productivity and export competitiveness. Classic case of having the cake and eating it too?
54) tiredsingaporean
take it easy man.
look at the horizon – always clear and blue but never reaching there – never.
will S’poreans “feel rich” too in retirement….
hahas/..joke…should say
WILL SING PP FEEL RICH WHEN THEY DIE but STILL HOLDING YR CPF MONEY,,BUT ONLY IN CPF PAPER….
hahas…happy until die..so good.
to 48) exSINgaporean,
need how much money for emigrate…??
i really wonder…and i really wants to…
hai..tired living in the rotten country and some rotten pp tat vote *******
if pp know how to emigrate..?
let me know..
thank.:)
Rich? got to be kidding, i just hoped that i won’t be poor, that’s all.
57) victor @young ganeration@ on October 14th, 2008 10.30 pm
to 48) exSINgaporean,
hey ‘victor’ – cannot let you run away man. this place needs people like you. if you run away and everybody like you run away, then people like me who are stuck here because i have family here, because i want to fight for freedom here etc – how?
already, we are going around trying to get the 66% to see the real picture because they cannot continue to shake legs – see, too much shaking legs, now whole country shaking!
Sweet Say,
Please stop your nonsense and tell me what grand policy u have for the unemployed, the underclass, the sick and needy. Tell me that all the money collected every month from ntuc membership is put into good use? Where have these money goes to? Will these money helped the unemployed to be retrain? All these crap of feeling rich when u see cpf statement makes me want to puke. You can see it but you cant touch it till the goal post is firmly set. currently at 62. Who knows when it become 82?
Your job is to get people with no job to find job, and not sprouting nonsense to make people angry. You are paid $150000 a month to do something worthwhile and not CBL and Talk cock. Please bear in mind who are your employer, is the people of Singapore. Not LKY!
FG
Dear 60) gemami on October 15th, 2008 8.13 am,.,
hahas..
i just want to know for emigrate,,
but battle will need to…
if we left only 10 pp against 10000pp..
we still will fight…
even if we know tat we will lost…but at least we try…
and i believe at god is arrange all the thing in order..
if u look at china history.
all the hero only came out when difficulties times…
only we guy could against it…
BAttle on next election BA..
singaporeans..
i would not give up my singaporeans citizenship..
becos it is count as batrayer in the past..
the battle is coming.. :)
u guy must live well until next battle field..
stand up,stand up for singaporeANS.
How many 66% voters represent ? 66% is meaningless. 66 person also can be 66%. Qualifying it with actual figure make more sense. Does 66% include those that did not vote and is walkover ?
Reading this http://www.opinionasia.org/node/44 actually sound confusing. So why does these percentage actually means ?
” PM Lee’s 66 per cent win at Ang Mo Kio GRC is a signal that we want to go beyond the material.”
I think we singaporean will die a lonely, painful death, even the little penny we have are sucked by these blood suckers PAP. They invested on the wrong and we bear their problems. How long are we going to suffer under this ridiculous and incorrigible regime? I don’t think I will see my CPF money lor. $300 for medisave for chronic diseases. Do they know the meaning of chronic, meaning going to die liao and cannot use medisave to pay the bills also. So we must work till we die while the regime enjoy their CPF savings which will never run away! This is an insult to any singaporean. 66% … I think next time they wont even have a percent of our votes!!
Before we blame the ministers etc etc, let us all take a good look at ourselves.
We were the ones that voted them into power.
So, we’re not really supposed to complain about the high cost of living, the DBS finanical fiasco, callous ministers and many other problems as we have signed up for this, knowingly of course, as shown in the elections.
So lets all move along and stop whining about those who were allegedly swindled, about those who cannot afford to live in singapore and many other things shall we. To those who made losses, I would say its an investment gone bad. For those who cannot afford to live in Singapore, I guess its a Darwinian process of survival of the fittest. Surely when you voted, it was clear that pragmatism who be the order of the day.
It is counterproductive to criticise ministers trying their best to do their jobs. Or limit the capitalistic nature of banks, they after all are running a business.
Singaporeans please, stop whining and carry on with your lives.
Isn’t this what Singaporeans are famed for?
Remember the great saying of Ms Wee S M ?
“life will kick you in the balls”
Note the tone of voice (or words, at least) from both Ms Wee and Mr Lim. Do you find something similar?
Clueless, let us not deceive ourselves because that is what the pap would have us believe. tell me, in which democratic country do you see 35% of the population who have voted for an opposition party gets only 2 representatives in parliament?
this is manupilation at its extreme best.
when you say, “We were the ones that voted them into power”, please do not make such sweeping statement to include me. I did not get the chance to vote because of this manupilation – think grc?
Your other accusation, “Isn’t this what Singaporeans are famed for?” is typical of what the pap would have us believe. Tell me, which country do not have citizens complaining about the lack of support from their governments on bread and butter issues or when their basic needs are overloooked?.
Worse, they take to the streets to make their points. We have been so good to this regime and the saddest thing is that the better we behave the more we get accused of being bad, of being whiners. If only they would pay closer attention to the whining! It’s all we hope for.
If they could not find it in them to help us, then who would? Are they not the rightful people we should turn to in times of national crisis.
So, save your msm preaching and take some time to listen a little harder on what we are saying. We have to carry on with our lives without you advising the obvious, thank you very much.
We just hope for some help at this time of need. The least we would ask of the govt is not to brush us off like you just did.
Shame on you!
I still wish you all the best and hope you do not have to live through what most of us here are expressing.
remember how our leeders were always harping that our reserves were only meant for use on rainy days? well, well, the storms have arrived. what we’re seeing now has been compared to the great depression in the ’20s.
so are we going to see our reserves put to good use – ie to help Singaporeans NOW? my bet is they have changed the tune: these reserves are for “long” term investment only. and the reason? because of the very poor investment decisions made by the gic etc.
of course, in the long run, all of us will be dead…
hahas..RIP,,not bad.
clueless,,
when in the election,
do pap say,,
WHEN I BE GOV,,,,I WILL INCREASE TO 7 % GST..
ERP BUILT MORE MORE…
TO ENTER THE ROADS TAT HAVE ERP WILL INCREASE more more..
ELECTICITY INCREASE INCREASE….
more more more…don feet like saying le….WE LOVE MONEY,BECOS OUR MEMBER NOT ENOUGH MONEY,,SO SINGAPOREANS GIVE MANY MANY BA..
hey ,,,use yr brain and think…
do they use tat reasons to win the election..??
ofcos not…they did.,,GIVE MONEY.. VOTE ME…AND LATER ON,,U GIVE BACK MORE MONEY TO GOV..
hahas…joke…
this is just a game…only clever pp will really look into it…
but do clueless clever..?? i hope u r.. :)
Personal thinking :
altho many do not know what is going to happen to their CPF in terms of the policy changes that may be introduced up to their retirement time, believe me, no one will do anything about it in terms of voicing up.
sporeans do not voice up and then when their own money lost, these who do not voice up looking desperately for someone to help them voice up.
what a …..! investors must be held responsible for signing a contractual document that is legal binding. YOU R RESPONSILBE.
just my personal opinion.
huat ah!
what a joke from minister. doesnt he aware that only he and pap alike feel rich when looking at their cpf? normal peasants sgreans can only sigh looking at their monthly bill etc.
also, dun depend on cpf for retirement. most of us wont be living long enough to use our money which lawfully but dishonestly retained by gavern for their own greed. where do u think they can come out with more than tens of billions to bet in foregin bank, and lose more than half of it in couple of months. worse off, to make up the losses in their bets, they have to make sure sg inc generate more profit by raising prices up everywhere from food, petrol, mrt, bus, electicity, water, etc …
sgrean would suffer as a results of this endless pursuit for glory and greed.
wasn’t it the govt who encourage people to invest their cpf funds?
and all those posb and dbs are government-linked companies who have staff who conned people to buy all those structured products so that they can earn millions and now all those old aunties and uncles will be left without their coffins principals.
Only in Singapore, it is cheaper to die than to fall sick! As mentioned even if you suffer from a chronic illness which in literally terms implies imminent death, one can only utilise a bare minium of only $300 of ones own cpf per year!!
Who is this government to dictate who lives or not. Hey, its my own money! In fact one should be able to use our medisave even if one wants to do a ct scan or mri to check our own body as a form of preventive illness in future.
Next we be hearing that only at a certain time can one flush the toilets, or take a shower. If you comply there will be a discount in your utilities bill! We have had toomany do’s and dont’s and can and cannots for way too long. It’s the year 2008 don’t they reliase this. The rich are getting richer, the middle class want to climb higher but don’t want to go drop lower. The poor are hoping for a break but definitely don’t want to go further down anymore. Welcome to life in Singapore no thanks to our present so called government of the people by the people for the people as it should be. It’s actually the government for the governmnet by the government for its own kaki nang!
the best thing for older singaporeans to do is to migrate once he/she hits 55. sell your property, take out all the money in CPF, and move to a cheaper place to live where your money enjoys a better exchange rate.
this is how the system is designed. after 55, go! and the minister is right. by the time you hit 55, your cpf will be bulging. you will feel rich. but you can only enjoy your richness by going away.
but if you choose to stay, tan ku ku to see your money. it would run away. it just keep wriggling away from your hands.
amen.
Very well said. Since the government always say we are old at 55 and we all have to retire at 55 except certain people not too mention names who have no retirement age , then to enjoy our rich CPF money as LSS said , migration to enjoy every single cent that belongs to us seems to be the only option.
We will never be able to enjoy all our medisave. Even if we never need it we cant touch it. That’s the biggest joke of all.The government thinks we need them to think for us. Whta do we have a brain for if not too think with it. So now our brain also they wanna control. See bey suay live in singapore. Yoda says: Control, control mind what you learn . Save you it can. In singapore the government policy is: Control control, we must control the people with full control in case they learn to understand and vote us out come next election!
How come this topic now so quiet? Is it because everybody now feel so rich; or; is it no one has retired yet?
Dear Singaporean,
CPF original aim was equivalent to a personal pension but over the years it had changed into a fund for health care, beside the obvious one buying a HDB flat. I am profundly concern that for many lower paid workers there be insufficient fund to support them during their old age. I had to move oversea to start my pension as I had used up most of my CPF for my sick father who later died of bone cancer.I am one of the lucky one who could escape as I had UK PR status stamped on my passport. Final salary pension is allot better as one is fully aware of the amount of pension one would receive based solely on one final salary. Purchasing a house is strictly a commercial transaction with either a bank or a building society. The loan/mortgage is paid using one salary on a monthly basis. Gahment should not be in businese making money. Their elected role is to govern . Businese should be left to the commercial world and they being in government should regulate it. When government is in businese, there are bound to have conflict of interest. Just imagine, they make the rules and set the price, what chance have we got?