Our CPF Scheme Is The Worst Retirement Scheme In The World

Yesterday we highlighted the disgraceful situation of how 70% of our seniors aged 60 and above are not able to pay their monthly expenses. The PAP runs a broken system called the CPF which is a farce and does not provide for retirement adequacy. The average monthly payout under the CPF is a measly $355 per month.

Something is very wrong with the CPF Scheme and we need to dismantle it completely and put in a new system which will give dignity to the lives of our seniors.

Below is a comparison of the various retirement schemes in the World that was highlighted to us. We are sure you will be shocked at what you learn !

The size of Singapore’s CPF fund as of Q3 2018 was $383.9B, equivalent to approx. US$284B with 2 million active members and approx. 800,000 retirees. We recently heard that the average return is a few hundred dollars for a maximum of 30 years. (incidentally our CPF fund is the 8th largest “pension fund” in the world when looking at the OECD pension statistics report). At 37% we have the highest contribution rate anywhere in the world.

Let’s look at an equivalent size pension fund and see what they deliver their citizens

Germany has a pension fund that is US$268B slightly less than Singapore’s with a population of 82.4million of whom about 25% are over 65, that’s 20.6 million retirees. Germany’s pension fund pays an average of €1,175 or SGD$1,800 for life and aims to replace 50% of their previous income. This is then supplemented by vocational and optional private schemes. Contribution rate is 18.7% split 50/50 between employer and employee

My question, why can a slightly smaller fund return 5 to 6 times the amount of money to 10 times as many people in Germany compared to ours?

That means Germanys pension system is 60 times more effective than ours!

And then let’s look at one of the best pensions in the world in Denmark.

Denmark has a population of 5.75 million very similar to ours with about 18% or 1 million pensioners. Their pension fund is only US$160B. They have a 2 tier system, the first part is paid by tax revenue and the second part is vocational split 66/33 employee/employer averaging a 12% contribution rate. The combination of schemes aims to replace close to 100% of income for life and currently sits around 98.7% and an average SGD$4,600 per month

We pride ourselves on being number 1 but when it comes to retirement, we are one of the worst in the world given the resources we have.

Why is that? What has gone wrong with our CPF system when others can outperform us by so much?

There are serious and fundamental flaws in how our CPF funds are allocated, used and invested and If the incumbents will not address these issues then we need to vote in a team that will.

 

Lim Tean

 

 

yyy
Promoted Product

20 Responses to “Our CPF Scheme Is The Worst Retirement Scheme In The World”

  • Went to Japan:

    Need to check the books of GIC/Temasek to understand why.

    GD Star Rating
    loading...
  • NotMyProblem:

    Malaysians sensed the same problem in 1MDB but they were smart. They kicked out the culprit and now trying to recover back the money.

    I am not sure Singaporeans can be smart like Malaysians if not smarter.

    Singaporeans should be smarter but only sleeping, even when the freedom of expression taken away also don’t know!!

    Let’s see what happens coming GE.

    GD Star Rating
    loading...
  • Asd:

    Where the money go ?

    GD Star Rating
    loading...
  • Kang:

    Maybe that’s why everyday workers are digging

    The ground to find the monies?

    GD Star Rating
    loading...
  • C’est la vie:

    *****
    And when you run the statement of, “worst retirement scheme in the world”, … alongside “managed by costliest managers in the world”, … you instinctively know something is amiss.
    ***
    *****

    GD Star Rating
    loading...
  • FPC:

    tHE PAP MINISTERS HAVE THEIR OWN PENSION NOT CPF.

    GD Star Rating
    loading...
  • LIONS:

    Thats being too nice.
    Our CPF Scheme is not a RETIREMENT scheme.
    It is just a *$cheme* or a $cam?!

    GD Star Rating
    loading...
  • William C:

    It is not true Sinkies have a lot of money in their CPF. Most are taken away to service the HDB loans. They are asset rich but CPF poor.

    This is why the topic of CPF don’t most are not bother about it. From what I know, those below 40 are in the cohort.

    CPF has failed totally. It just a middle man transferring all contributions today to HDB tomorrow. Nothing left except the locked SA and Medisave

    Even those with money in CPF, most upgraded to private properties. Again asset rich and CPF poor.

    PAP will win every general election began all don’t want the property price to go south.

    GD Star Rating
    loading...
  • whats up doc?:

    something has surely gone awry. cant blane us for feeling so.
    no wonder when the honourable late President OTC asked to see the books…they told him it’ll take 56 man years to draw down the full info.
    looks like they didnt dare or couldnt???
    where has all the money gone? no one’s talking!

    GD Star Rating
    loading...
  • patriot of TUMASIK:

    GE akan DATANG 2019 aga2 month of August…when the Gates of Hell open to feed the greedy Bastards…

    AND after August in September “Happy Birthday,” the Drumbeat will start from the Home of The OWL @Istana Burong Hantu and the GunCarriage will Roll out from the Gate of the Istana…

    Majulah Singapura!!! Mati lah… Orang PuraPura!!!

    GD Star Rating
    loading...
  • Leejiapore:

    Simple answer from PAPigs, those are fake news.

    GD Star Rating
    loading...
  • Proof of the pie is no-eating:

    When the Milo presiden really does the work of the (elected) President, maybe 56 man-years will not be so long to spell out the dollars and cents and whereabouts of our reserves.

    GD Star Rating
    loading...
  • Some German wisdom:

    “For the normative self-understanding of modernity, Christianity has functioned as more than just a precursor or catalyst. Universalistic Egalitarianism – from which sprang the ideals of (a) freedom and ‘a collective life in solidarity’,(b) the autonomous conduct of life and emancipation,(c) the individual morality of conscience,(d) human rights and democracy – is the direct legacy of the Judaic ethic of Justice and the Christian ethic of Love. This legacy, substantially unchanged, has been the object of a continual critical reappropriation and and reinterpretation. Up to this very day there is no alternative to it. And in light of the current challenges of a post-national constellation, we must draw sustenance now, as in the past, from this substance. Everything else is idle postt modern talk.idle postmodern talk.. Up to this very day there is no alternative to it. And in light of the current challenges of a post-national constellation, we must draw sustenance now, as in the past, from this substance. Everything else is idle postmodern talk.

    GD Star Rating
    loading...
  • Some German wisdom *:

    So says Jürgen Habermas the contemporary Philosoph der Aufklärung

    GD Star Rating
    loading...
  • Delay No More・屌李(顯龍)老母:

    It is a pension fund all right. But not for you, me and the man in the street.

    It’s a golden pension fund crafted specially for those that continue to live their ivory towers erected by the likes of you and me, on our blood, sweat and tears!

    GD Star Rating
    loading...
  • Delay No More・屌李(顯龍)老母:

    It is a pension fund all right. But not for you, me and the man in the street.

    It’s a golden pension fund crafted specially for those that continue to live in their ivory towers erected by the likes of you and me, on our blood, sweat and tears!

    GD Star Rating
    loading...
  • nihon:

    why are the 2 funds able to pay such a high rate?

    is it due to higher wages or returns ? or better payout? or the hdb raided OUR cpf reserves?

    why cpf pension pays out so little?

    GD Star Rating
    loading...
  • Gen NOW:

    nihon:
    May 14, 2019 at 3:13 am (Quote)
    “why are the 2 funds able to pay such a high rate?

    is it due to higher wages or returns ? or better payout? or the hdb raided OUR cpf reserves?

    why cpf pension pays out so little?”

    Because, my dear, the money’s all nearly gone! 無くなちゃった!盗まれてしまったから!!!

    GD Star Rating
    loading...
  • U R Not JOKING:

    Retirement Plan. U must be out of your mind! CPF is Con the dafts plot for the greedy, hungry n aggressive Pinky And Pooy! The full meaning is just a 5 decades oversight to reveal. Ho Ho Ho going to the banko chimneys ho ho ho. Jingle bell jingle jinglinging ho ho ho. lets celebrate where r the turkeys for the table carving. he he ho ho hiccups

    GD Star Rating
    loading...
  • James Lee:

    Spot on!!!!

    Both the PGs and MGs who are now facing the consequences of dubious policies on CPF,Housing and the Privatization” of our Public Hospitals, have realistically been taken for a rough and damaging ride into their retirement.If the present 4G leaders are sincere in their praise and appreciation for the contributions made by these seniors to nation building,then those in the corridor of power in the govt should help redress this problem by providing without further delays the following to all PGs and MGs:-

    1)Free(ie fully subsidised) basic hospitalisation and health care.The government can save on the usual medisave top ups and medical subsidies.

    2)Because of 1) above,the moneys in their Medisave Account amounting to more than $30,000 can be released to meet their retirement needs.

    3)Unconditionally give a monthly payment of S$500/= to all PGs and MGs to further boost their standard of living for their remaining life span.

    4)Waive all charges and fees for the Singapore Passport for all seniors.

    Those responsible in 4G should do the needful before it’s too late!!!!

    GD Star Rating
    loading...
Member Services
Self-SupportMembers Login
Sponsored Advertisement

Search On TR Emeritus
Sponsored Advertisement

Most Recent Comments
  • Jman: The economy is really no good. The internet has killed a lot of SMEs that might have paid the Author a decent...
  • Harder Truths: Mr Goh This dishonourable son has dome absolutely nothing of value in his life. Everything was given...
  • Rabble-rouser: The DJI just crashed again @ 450 points on 23/08 ie. Friday’s close after China unveiled new...
  • Harder Truths: What is this vaccination for? Just another money-grabbing sales pitch. In the US there are bacteria...
  • What Nonsense Climate Change: Please solve our current problems now such as high cost of Medical Treatment, Cost Of...
  • HDB flats depreciate to ZERO: Mediocrity loves company.
  • HDB flats depreciate to ZERO: Another good reason for REGIME CHANGE.
  • Rabble-rouser: @ HDB flats depreciate to ZERO: Election motion: “Foreigners reap all the benefits, Locals bear...
  • Rabble-rouser: - Cont’d - The PAP have chosen the pathway for themselves without our knowledge; configured...
  • Rabble-rouser: @ BK, oxygen: Our mate, oxygen was right on the money when he remarked that PAP were: 1. Lousy...
Announcements
Advertisements
Advertisements
Visitors Statistic
Latest Statistic