The following is a letter written by Leong Sze Hian and published by The New Paper on 17 February.
I REFER to media reports about the changes to the CPF Life scheme.
Changing CPF Life’s original 12 options to four, is not just making it less confusing for Singaporeans to choose. There is a rather fundamental change from the National Longevity Insurance Committee’s recommendations accepted by the Government.
In the original ‘no refund’ option, there was still a refund, based on the unused portion of the CPF retiree’s Retirement Account balance.
Now, the new Life Income Plan (non-refundable), which pays the highest monthly income, will have no refund at all when the retiree dies.
Given the choice of receiving the most income against receiving less with a higher refund for beneficiaries, I think some Singaporeans, particularly those who don’t have much in their CPF and do not have other funds, may choose the Life Income Plan as every dollar counts for them.
But what will happen to widows and dependent children, if such retirees die shortly after starting to receive their CPF Life annuity payout at age 65?
When the Compulsory Annuity Scheme was announced in August 2007, there was widespread unhappiness about requiring all Singaporeans to buy a life annuity, which we can benefit from only if we live beyond 85.
Now, with the Life Income Plan, I think it is equally hard to accept that you may lose your entire CPF minimum sum of up to $134,000 by 2013 plus accrued interest, if you choose the option that gives you the maximum monthly payout.
The committee’s original recommendation is still a better ‘middle of the road’ solution.
I would like to urge Singaporeans to think carefully before choosing the no-refund option, as it may mean losing your CPF life savings if you die early.
Related posts:
- Amendments to the CPF Act – did you know?
- CPF Life – does it really address retirement needs?
- CPF Life: Helping Singaporeans to decide?
- CPF – F1 or F9 : Why cannot choose to make CPF last longer?
- Are Singaporeans clueless about retirement, and if so, why?
This cunning govt trying to cheat the ignorant citizens who are not careful.
Fast one? It is the second time since the explosion of the global financial crisis since the PAP government attempted to hoodwink Singaporeans over CPF. The interest rate for the CPF Special Account was increased to 4% but it is only a temporary 2-year measure. Monies in the CPF Special Account cannot be transferred to other CPF accounts which really warrant more attention, such as Medisave.
Agree with #2
I always think that our CPF is just another Ponzi Schemes that cheats money out from ordinary people. What they are trying to do is to use confusing schemes and tactics to mislead citizen to give up their CPF so that the state can use it for their investment in foreign country.
stupid man (#5)
Let’s rename CPF from Central Provident Fund to Madoff’s Providence Fund.
Some of us do not have children and dependents. I think this is what the scheme is for. My main concern is with the monthly payout level is – how it is calculated and whether it’s fair to those participating in the scheme.
why no opt out scheme?
Redbean
Yes, there is…It’s call EMIGRATION.
Why don’t CPF Life Scheme be just one and not 4 options? Let the members choose to opt-in or opt-out this Scheme. It should not be made compulsory because Government policy is everchanging and it is always to disadvantage the members than the Board.
Why is life made so complicated with all sorts of policies thrown to me by CPF Board.
In 2005, I invested abt $50k of my cpf money & earn abt 12k when i sold in july 2007. My investment return is MUSH more than what CPF give out.
The stock market DIVED have caused many to lose money in their investments. So NEXT step…..”YOU MUST HAVE 20K IN ORDINARY ACCT & 20K IN YOUR SPECIAL ACCT”.
I should be allow to invest my own money…..How can I max. my money since I can’t have it even when i reach 55????
Latest news: ” S$30K in special acct”
http://mycpf.cpf.gov.sg/CPF/Templates/SubPage_Template.aspx?NRMODE=Published&NRORIGINALURL=%2fMembers%2fGen-Info%2fCPFChanges%2fCPFChanges_2009%2ehtm&NRNODEGUID=%7b25C0FD1C-930F-4685-96D9-E12858D3C6C8%7d&NRCACHEHINT=Guest#CPFIS
1 should be respodsible for his own money & investments. Why am I being “CONTROL” by the management…its my “MONEY”.
Is it because of the lost in GIC??? That “ALL” this new plicies are set? Of course that’s is only my own views…….we don’t really know how GIC get the money from…..DO YOU???
Anyway, I really don’t WANT to be spoon FEED……I want to have freedom to do what I WANT……..I won’t beg or complain even if i lose money out of my “POOR” judgement…….
I think in term of investments..I’m better than GIC…..at present, my CPF investments in unit trust have gain abt 3%…….even in this “BEAR” market…I still can ean money…my INVESTMENTS ARE ALSO LONG TERM…..
GIVE ME MY MONEY……….I WANT TO INVEST MORE……IT’S FOR LONG TERM ALSO………..
I prefer to opt out too, I have no confident nor interest in any govt implemented scheme to lock up my CPF.
So what the fish is the previous Parliament debate for ??? Debate debate – wayang wayang, and now ‘overturn things that were already decided and accepted’.
Wow, we ARE ALL TAKEN FOR A BLOODY RIDE. What kind of people have we voted into Parliament (looks like bicycle thieves are morally better ).
May I also alert all Singaporeans – not to be taken in by spate of advertisements and persuasion to CPF members to topup for their parents etc etc.
The logic and benefits highlighted sounds good. BUT WHY SHOULD YOU SNED MORE MONEY INTO CPF FOR WHAT ?? To be locked up is it? To be gambled by professional gamblers in TH/GIC who so-called have robust and professional vetting systems ??
Want to give your parents money – direct cash lor, bypass CPF so cumbersome.
aiyoyo
still, why so complicated again???
is it not easy to just take out the cpf $
then commoners easy usage also, correct?
aiyoyo
If you have enough in CPF …
pay down your FLAT…
Rent out a room or two in your FLAT ..
that is your annuity.
I would think of all ways to move CPF money out into the real world where I have full control of it.
A pity is that those uneducated and aged will be the one who will use the scheme
Don’t worry too much, leave your money in CPF for old age and Cash Paid Funeral. Balance will benefit next of kin if you have made a nomination……………………………….don’t be too pessimistic always look to the positive side of things for a Win Win Situation
These coffers are playing with blood money.
Can I just give up my citizenship and declare myself as stateless to the CPF board?
Will they give me back my CPF then? Is that a way to opt out also?
Or do lesser mortals need a violent overthrow of our elites to get back our CPF? I sure hope we do not have to go down that path.
APs, please put this injustice to stop and let the people have their hard earned monies back. I believe many will vote for you if you can give us back what is rightfully ours!
The total control that the PAP exercises on every aspect of our life is a refutable fact, and the control can only gets tighter under pressures.
The question is: what do you want to do? Allow them to progress down that route?
Is the choice clearer to you now? Would you know what to do during the coming GE? Or will you still take the sweet words from PAP and once again vote for them? Or will you be determined and brave enough to vote against them?
Come to think of it, wonder beside singapore, any other country that cheat its citizen using well shaped propaganda?
#15
Ya, why bother about whatever annuity.
Your proposal is better than the blood sucking govt.
#6 eveline has correctly pointed out this trap…one big target is those single retireee with no dependents….i am seriously considering give up my pink i card in exchange for my blood & sweat savings…imagine working for 35 years and being taken for a ride….what the…F*@#*&*
I would not place too much faith in the elections…so what if the oppostion wins 1 or 2 GRCs….will it change for the better…??
We must all stand together and vote for cpf opt out! Fight for it! Stop letting them get away with moving goalpost!
“Minister in the Prime Minister’s Office, Lim Boon Heng, said on Saturday private insurers would be quite challenged to offer the same interest rates the CPF Life annuity scheme is offering. ” (Channel News Asia 14 Feb 2009)
I am particularly disgusted when a highly paid minister plays insurance sales man and doing a poor job out at it. It is highly suspicious when the government decides to thumb down the private insurers and suggests the People park their money with CPF. Did we not hear from the same government that our private insurers in Singapore are well capitalized and perfectly sound?
There is a opt out scheme and 5th unspoken option. Surrender your red ID, and opt for total withdrawal. Lower your expectation in other country and make good use of your CPF to enjoy retirement.
Anyone? I don’t mind to be a rich quiter, since this is my money anyway. And adding to it, the government has always remind us to take care of ourselves. Right?
Join the annual 1000 members club today! Help contribute to increase the 1K annual leaver club. And leave the 66.6% of the voters to take care of our self service PAP elities.
Free door gift available on first come first serve basis. Air is fresher on the other side.
17) ErniesUrn (Ernie) on February 18th, 2009 6.22 pm
These coffers are playing with blood money.
They have to pay back with their own blood in time to come. No one gets away, you can run but you cannot hide forever, its just mother nature, whatever comes around, goes around.
Thank you Mr Leong for providing expert opinion and advice.
Left to myself, i wonder if i would understand as much.
i am worried about retirement.
i see that only the people can help me now.
Thank you Mr Leong for providing expert opinion and advice.
Left to myself, i wonder if i would understand as much.
i am worried about retirement.
i see that only the people can help me now.
my retirement is virtually in their hands.
It is likely there will be a flash general election anytime now. Read:
http://amortal.wordpress.com/2009/02/18/flash-general-election/
All work and no play means no retirement till 65……..the bio-rythm starts to slowly disintegrate into aging that calls for hefty maintenance!………everything has got it’s shelf life and one must plan his or her retirement gradually as we cannot guarantee future income as past performance is no gurantee of present gains!…..Inflation is the only threat!
And you wonder where the money for this year’s offset package is coming from? One wonders where the old surpluses and all the secretly absorbed CPF monies disappeared to.
What does the 3 Keys-Symbol of the CPF crest stand for?
I and my wife have been cheated and being lured to transfer all our life saving in the OA to Special Account as the Govt 2 years high interest rate payment. We felt stupid and very regret now. We are going to lost the control of our entire life long hard earn saving in the hand of the Govt. I am now desperate and sad. Can any one help to advise me how could I take out the money from the CPF to avoid being frozen.
#36) Tony on February 21st, 2009 2.17 pm
Give up your citizenship and migrate somewhere else. That’s the only way they will ever give you back you CPF. Thousands of Singaporeans have already done it so its no big deal.
Otherwise, just pray hard that the APs get voted in and give the people their money back.
No worries Tony, CPF takescare of your special account with good interest compared with peanuts elsewhere!
A little subterfuge here…….a little subterfuge there and then ….and ooop! – if you are less vigilant – you find that you cannot even withdraw your monies after you reach 85.
You and your loved ones should input as little monies as /whenever possible in there.
Now I know why MLM marketing always hires Christians. Coz they really know how to preach!! Some ppl even end up converting to Christianity after joining MLM. These Christians are using this Ponzi schemes not only to cheat $ but also to recruit more members. Very disgusting technique!! Just a bunch of hypocrypes!
To loop
#40
Hey please cool it. Dont make such sweeping statements without proof. And you are accusing Christians of using Ponzi schemes to cheat and convert and this is very dangerous and unbecoming.
This is stepping out of line. Whoever you are I think its better you reserve your comments and utter it in your own toilet rather than here which is not a place for such comments.
if the schemes are that good, why didn’t they have it earlier?
Only reason: no incentive to make themselve work harder.
Also, there is no assurance that the payment period will not be brought further back.
This no assurance that the minimum amount in each scheme.
All figures are purely illustrative.
There is no inflation adjustments.
So, they get you to take out your monies much later and give you peanuts in returns every month and they still have the possibilities of reducing the number of peanuts you get and the time you get it.
Sly?