Why the current CPF system is making Singaporeans poor

Many Singaporeans think they have only a small sum in their CPF, and therefore the interest rate does not matter much.

They are very very wrong. The power of interest building up on interest over a few decades is very very big.

If you start at 25 and have a small CPF sum of $10,000, what do you expect your $10,000 to be when you are 75?

At 2.5%, your $10,000 will grow to $34,000 when you reach 75.
At a normal good return of 8%, your $10,000 will grow to $470,000.
At a good return of 10%, your $10,000 will grow to $1.2 million.
(All these calculations can be easily verified.)

This is based on only $10,000. If you have $50,000, you will have a few million dollars in your CPF at 75.

You see? The CPF system is making Singaporeans poor, when Singaporeans should be very rich in their retirement years. We should be traveling business class tours instead of wiping tables for $5 an hour.

 

CPF member

 

 

yyy
Sponsored Content

21 Responses to “Why the current CPF system is making Singaporeans poor”

  • Just for the sake of discussion and lets say the figures by the writer are correct, using the figures above, so a 25-year-old CPF member (via CPF) loaned the $10,000 to GIC:

    At 2.5%, member’s $10,000 will grow to $34,000 when reaching 75.

    BUT

    GIC gets a return of 8%, so $10,000 will grow to $470,000 when member reaches 75.

    And during all this time, the difference of $470k – $35k = $435k are being paid to the board at GIC (some maybe return to Reserves).

    The figure above is only for ONE member, there are millions of CPF members!

    Liz kind of business sure make money, who lon want to do?

    GD Star Rating
    a WordPress rating system
  • never vote pap:

    TRE Techie:
    Just for the sake of discussion and lets say the writer the figures by the writer is correct, using the figures above, so a 25-year-old CPF member (via CPF) loaned the $10,000 to GIC:

    At 2.5%, member’s $10,000 will grow to $34,000 when reaching 75.

    BUT

    GIC gets a return of 8%, so $10,000 will grow to $470,000 when member reaches 75.

    And during all this time, the difference of $470k – $35k = $435k are being paid to the board at GIC (some maybe return to Reserves).

    The figure above is only for ONE member, there are millions of CPF members!

    Liz kind of business sure make money, who lon want to do?

    1st, a government is not a commercial business, and should not be a commercial business.

    2nd, pap Ljs and pap Cbs all like to take their roles like business roles, so much so making S$m is their daily aim, from the time they wake up to the time they lie down.

    but the pap Ljs and pap Cbs forget they are not playing clean. they legislate rules and then legislate more rules so that they continue to make S$ whether market is up or market is down. they say this is due to their talent, the ability to make S$ for pap in up markets or in down markets is nothing but pure pap talent.

    the truth is, pap S$ money making gimmicks is nothing more than 70% sheep stupidity, pure and simple.

    GD Star Rating
    a WordPress rating system
  • can pap survive w/o us:

    robbing sgs in broad daylight & lying to us without blinking.
    when dear bro Roy brought out the facts in the open they tekan-ed him thro n thro.
    no diff from corrupt 3rd worlds.
    @#$!%*!!!

    GD Star Rating
    a WordPress rating system
  • Flabbergasted:

    and give our money away as scholarships and living expenses to foreign trash.

    but deny our true blue native to use our own CPF money to fund a child’s education.

    they just don’t want natives to break out of the poverty cycle.

    GD Star Rating
    a WordPress rating system
  • whatever tax or fee increase:

    //gets a return of 8%, so $10,000 will grow to $470,000 when member reaches 75.//

    rent seeking (similar to all forms fees and taxes which can be raised in the name of this and that) so that those who are in the borderline or below (natural equilibrium of have and have-nots or whatever economic status) will alway need to play catching up as part of the cog servicing (by and large) the natural aristocratic and business needs.

    it all depends on the redistribution mechanism (how and to who) to moderate the effects of have and have not lar ? and redistribution can be to individuals or corporates or in the form of economic stimulus projects which can be wasteful and unnecessary at times ???

    worst. this is not free market and it is mandated by law from the white monkey idiots ?

    off topic, if gst is going to be raised or whatever tax or fee increase, you will be taxed by the additional % or $ increase in your savings (worst for mandated savings becos of timing especially affecting much those who need it more desperately) for consumption delayed to the future ?

    GD Star Rating
    a WordPress rating system
  • NotMyProblem:

    can pap survive w/o us:
    robbing sgs in broad daylight & lying to us without blinking.
    when dear bro Roy brought out the facts in the open they tekan-ed him thro n thro.
    no diff from corrupt 3rd worlds.
    @#$!%*!!!

    That’s the reason why everything is kept in secret or given half true. That’s the reason why Ministers are paid in Million $ to keep their mouth shut, including the “Malay”-President.

    That’s why PAP’s MPs and Ministers dare to say they are paid not enough. Because keeping the mouth shut is very expensive.

    That’s why an Indian is willing to be a Malay President.

    GD Star Rating
    a WordPress rating system
  • N.Jungne:

    As loong as there’s the Husband and WiFi team is around, don’t talk about CPF

    GD Star Rating
    a WordPress rating system
  • Singaporean Kong Come:

    Use iron first to control your money without giving U an option. They R very good in giving stupid excuse. U will spend your money in Batam Island. Just tell them U will spend your money in MBS or Resortworld. then the money will go into their pocket. Their every policy is about money. make sure U go PUB=Pay Until Broke. or those big fat salary go to those white Ah Lee Ba Ba robber. Eg: that Woody Goh call himself “Emeritus”= stand for Expire Minister Getting Ridiculous Salary.

    GD Star Rating
    a WordPress rating system
  • oxygen:

    OUT OF CURIOSITY, I GOOGLE – what does servitude mean in law?

    I got this answer.

    Servitude. The state of a person who is subjected, voluntarily or involuntarily, to another person as a servant. … The term servitude is also used in Property Law. In this context, servitude is used with the term easement, a right of some benefit or beneficial use out of, in, or over the land of another.

    GD Star Rating
    a WordPress rating system
  • WakeupSG:

    We have been saying that CPF alone is inadequate to provide for the senior citizens’ retirement as it is meant to provide cheap funds for government-linked institutions to invest. CPF only help the govt to get rich & grow richer if the interests earned remain low!

    As such the govt has failed to protect & provide adequately for the retirees! It is their sacred moral responsibility to help given that CPF provides the funds from the members! CPF for now is actually Citizens Providing Funds to help the govt!

    May I urge the govt of the day to urgently address this shortcomiing! It should add a govt special yearly monetary gift top-up to achieve retirement adequacy. Before payout age, can allow members to use any excess for child’s education, etc if needed!

    What do you think?

    GD Star Rating
    a WordPress rating system
  • Asia Sickman in SG:

    What is the use of KPKB. they deserve for what they voted.

    GD Star Rating
    a WordPress rating system
  • Blodd sucker not cock sucker:

    That’s what employers say.

    GD Star Rating
    a WordPress rating system
  • HDB flats depreciates to ZERO:

    Forget the 2.5% if your CPF money is tied up in your (depreciating) HDB flat. When the lease ends the flat will be worth ZERO (as stated by Lawrence Wong) and so will your CPF money invested in the flat. Using retirement money on a depreciating asset like an HDB flat is a big mistake. A depreciating asset is not a store of value.

    GD Star Rating
    a WordPress rating system
  • Orchard Towers:

    It is simple equation when in the 60s the interest rate was. 6.5 % ( hope this is not fake news )and now we are moved on 50 yrs or so but the rate is below 6.5% with all the different group added together ie OA SA etc. We are no where what we deserve … so pathetic. So where the reality between inflation , real income and disposable income … haha I regret studying economics coz it made me realise I am not one of the 70%.

    GD Star Rating
    a WordPress rating system
  • oxygen:

    @ HDB flats depreciates to ZERO:

    SORRY I DON’T SEE HDB FLATS TO BE A DEPRECIATING ASSET but rather it is, to me, a DISRUPTIVE LIABILITY.

    I will explain why.

    HDB flats depreciates to ZERO: Forget the 2.5% if your CPF money is tied up in your (depreciating) HDB flat. When the lease ends the flat will be worth ZERO (as stated by Lawrence Wong) and so will your CPF money invested in the flat. Using retirement money on a depreciating asset like an HDB flat is a big mistake. A depreciating asset is not a store of value.

    It can only be an asset to the buyer if he/she owns the flat. BUT THAT IS NOT THE CASE because it is a lease. In property law, HDB is owner/leasor even after you fully paid up it – in that process and entanglement – a large chunk of your CPF is imprisoned in it WHICH YOU CORRECTLY ILLUMINATES TO VAPORISE TO ZERO VALUE WHEN THE LEASE EXPIRES.

    In law and accounting application, lease is always treated as a liability and obligation to the legal owner, and until that is satisfied, the liability can impose severe hardship and disruption to your life.

    THAT IS WHY I PREFER TO CALL HDB A DISRUPTIVE LIABILITY when the lessee has little option to shift out of an existing lease and resume/take up another lease elsewhere with little costs and inconvenience and no continuing obligation after fully paid for. BUT THAT IS NOT THE CASE OF HDB FLAT, YOU REMAIN LIABLE FOR RESALE LEVY as if HDB is the silent partner deserving and entitled to share part of the proceeds of your sale thereon if you lease another from this same (HDB) owner.

    Your fake ownership of your bought HDB flat is NOT YOUR ASSET OWNED BY YOU – NEVER!!

    GD Star Rating
    a WordPress rating system
  • 柑林内:

    胡说八道!

    GD Star Rating
    a WordPress rating system
  • Lye Khuen Way:

    The writer is absolutely correct in his presentation of the amounts by the end of age 75.

    But why at age 75 ?

    Shouldn’t the proper age to use nowadays be age 65 ?

    Nevertheless, the power of compounding interests is very Real.

    What is not mentioned is that we were conned to invest in the Public Housing thing called a HDB Flats because it was supposed to be an Asset Enhancement, sure won’t loose stuff.

    Well and good if only the prices of new flats don’t increase faster than what we can afford.
    (Why ? Because Land Cost was added when once in the early days of our Independence, it was never added)

    Another thing that irks me is the Low Interest Rates given .Low as compared to decades ago .
    Low when compared to what GIC has now declared to be its long term annualised rates of return.

    And compared to the other SWF of ours : Temasek Holdings .
    Did they not boast that theirs was around 16% annualised returns ?

    GD Star Rating
    a WordPress rating system
  • Savings just for laughs:

    A young CPF officer decided to get his first tailor-made suit. As he tried it on, he reached down to put his hands in the pockets but to his surprise found none. He mentioned this to the tailor who asked him, “You’re a banker, right?” The young man answered, “Yes, I am with CPF board.”

    Tailor: “Well, whoever heard of a banker that put his hand in his own pocket hehehe?”

    GD Star Rating
    a WordPress rating system
  • Harder Truths:

    You are correct “CPF member” – the power of compounding interest is what makes or breaks a fortune.

    However – CPF is not your money. So those who it really belongs to can steal however much they want and you must then thank them for leaving you something small as a token of pity or an insult.

    GD Star Rating
    a WordPress rating system
  • oxygen:

    @ 柑林内:

    HOW CAN IT BE, as claimed in unexplained brevity by you as

    柑林内: 胡说八道!

    WHEN

    - CPF is a moving feast of ever constant rapidly changing rules denying members’ access and utilisation of those resources saved by peasants

    - nobody knows what happen and where is the difference of actual returns on invested funds and the low payout of 2.5% per annum…..where has that disappeared money gone to? PAPpypolitics/PAPpynomics should now pay out a monthly pension to all PG/MG to compensate us for the disappeared loss in the darkness of secrecy concealment and in fairness to all parties!

    DONT YOU AGREE?

    GD Star Rating
    a WordPress rating system
  • oxygen:

    @ CPF member

    CPF SYSTEM IN ITS CURRENT CONSTRUCT IS A MASSIVE BACK-DOOR TAX TOOL of PAPpypolitics and PAPpynomics. As a stated pretending retirement saving scheme, it is a SHAM of hideous wealth extraction in reality.

    WHERE IS ALL THAT MISSING MONEY GONE TO if PAPpypolitics says it can’t afford to pay all PG & Merdeka generation an adequate state-funded retirement pension?

    CPF member:At 2.5%, your $10,000 will grow to $34,000 when you reach 75.
    At a normal good return of 8%, your $10,000 will grow to $470,000.
    At a good return of 10%, your $10,000 will grow to $1.2 million.
    (All these calculations can be easily verified.)

    This is based on only $10,000. If you have $50,000, you will have a few million dollars in your CPF at 75.

    You see? The CPF system is making Singaporeans poor, when Singaporeans should be very rich in their retirement years. We should be traveling business class tours instead of wiping tables for $5 an hour.

    GD Star Rating
    a WordPress rating system

Leave a Reply

 characters available


Scroll Down For More Interesting Stuff


Member Services
Self-SupportMembers Login
Sponsored Advertisement

Search On TR Emeritus
Sponsored Advertisement

Most Recent Comments
  • Rabble-rouser: @ Bullocks Talking: If XJP is President for life, it doesn’t mean that he’s an emperor nor...
  • Rabble-rouser: @ Python 5: Property market still have significant players with deep pockets to withstand (for the...
  • Haigen-Diaz: Cont’d… The more globalized capitalism becomes, the less the profits of US multinationals...
  • Haigen-Diaz: Rabble-rouser: Bro! The Continental Americas (from North, Central to South America) were either:...
  • Rabble-rouser: Tan Kin Lian & that Cynical Investor both sama-sama in TRE universe – not only write garbage...
  • Rabble-rouser: @ TRE Techie: Probably @ Bullocks Talking doesn’t even possess a Passport (never been to China)...
  • a PG: All the best to Dr Tan and his PSP team members. Singaporeans are looking forward to the new party in the...
  • Roger Mc Smiley: Election of Legitima cy: The electorate first elect a small group of people to represent...
  • TKL Plagiarize: Hey, guys. After you all slammed him for his garbage, he now plagiarize above article, stock, lock...
  • Asd: Celebrate for what ? Over is over already.. Why waste national resources… better to put money to save or...
  • Harder Truths: Sathya Nadella is fro mSouth Asia and his one and only talent is in sweeping the dead Microsoft...
  • Memo for Mr. Tan: https://www.australiansuper.co m/superannuation Sir,you might wanna check out what the Aussies do...
Announcements
Advertisements
Advertisements
Visitors Statistic
Latest Statistic