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Is the WP’s proposed alternative a better bet than the current one?

Workers Party (WP) MP Jamus Lim was conducting routine house visits at 308A Anchorvale last week when he shared his experience interacting with the Wong family. The Wong family – which has 3 generations staying together – spoke to him on a variety of issues.

The popular politician and economics professor – whose presence is seen to have contributed to the win of Sengkang GRC in the recent Generation – felt that the “one topic that appears to cut across generations, however, is the matter of CPF savings.”

The Professor said that this was a topic that affects all the age groups.

For the middle-aged, their CPF balances are often tapped on to purchase their residential property, resulting in a “larger share of incomes devoted just to securing a roof over their heads, rather than contributing toward retirement”. This is made worse when property prices are rising and CPF is sometimes tapped on to help with school fees of their children.

The issue of the CPF is also present for the elderly, who are faced with rising medical costs. In turn, this brings about the question on whether existing limits for Medisave utilization are adequate for the older generation. Indeed, the Mercer Marsh Benefits 2019 Medical Trends Around the World report shows that the medical inflation was 10% in Singapore last year – 250% the 4% interest paid on the MediSave account.

Netizens praise Professor Lim for his insightful comment

Going by comments on Facebook, Professor Lim’s comments seem to have resonated with netizens.

Arut Siva commented that Singapore “is the only country where 37 percent of Salary are gone into cpf and is locked for life” and this was too much considering that “many people in [their] 50s have their houses fully paid and [on] top of that they still have funds exceeding [the] minimum sum.”

Another Netizen, Peng Lum Soh agreed: “When the dividends paid on your CPF is lower than the inflation rate, it becomes a diminishing asset. Given that a large portion of CPF contribution goes into leasing your government owned HDB flat plus the high medical costs, many Singaporeans will not have much left over for retirement. This situation gets more aggravated with time.”

Worker’s Party Manifesto on CPF – a better alternative?

According to the Worker’s Party Maifesto, the party proposes 3 viable alternatives to the current system.

Perhaps the most significant policy proposal is that the WP has proposed a special dividend on our CPF savings. The party takes the view that since the GIC indirectly invests CPF funds, then it should follow that CPF members “must be given transparency on the nature and performance of their money”.

In this regard, WP champions that CPF members should be aware of the “10-year moving average difference between the investment returns of GIC and the net interest payable on CPF member balances”. One-third of this difference should be credited into CPF members’ Special Accounts to boost retirement adequacy.

Next, the WP is also aware that many – such as full-time home-makers and caregivers undertake “unpaid labour in the form of caregiving” and thus struggle with retirement adequacy due to their lack of CPF savings. The WP thus believes that the government should relax rules on the transfer of CPF funds before the age of 55 to older relatives in one’s extended family.

Finally, the WP champions that the CPF Payout Eligibility Age and CPF Life eligibility age should be lowered to 60, whilst account holders whose balances that exceeded their Minimum Sum should also be allowed to “withdraw a reasonable percentage of their excess CPF balances during times of crisis”.

Will a higher interest and more flexible withdrawal rules bode well for CPF members?

 

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7 Responses to “Is the WP’s proposed alternative a better bet than the current one?”

  • #06-183 Suay Nang:

    Just return us all the money.

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  • opposition dude:

    PAP won’t change much on CPF as long as they are the ones running the show so instead of telling PAP to return our CPF let us vote as many of them out as we can in an election.

    They nearly lost West and East Coast in the last round so we can at least say they don’t have that much support over in those 2 GRCs. WP and the rest of the opposition parties please work hard thanks, once we have even more of you guys voted in is when PAP will be forced to change or else.

    PAP is the type of idiotic party which needs to learn political lessons in the hardest way possible and that is to not have the power to make decisions as and when it benefits you and not the citizens.

    Looking forward to the next election! With the 3G still in charge it won’t be difficult to win another GRC or more!

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  • xoxo:

    a pipe dream is still a pipe dream.
    PAPple already earmarked YOUR CPF into ‘THEIR’ CPF with all sorts of schemes like MEDISHIT LIE.

    At the end,your grandchildren may have to ‘TOP UP’ your CPF a/cs when it is depleted by expensive MEDICAL BILL$???

    WITHDRAWALS?

    NOT UNLESS YOU GET A NEW MORE COMPASSIONATE GOVT than what we have now.
    PAPple can simply loot YOUR RESERVES by hundreds of BILLIONS to ‘save jobs’ for FTs but PAPple tell you cannot use CPF to assist own needy sinkingPOOReans like retirees and elderly?

    they tell you $1K salary enuf to get by and even afford to buy HDB?
    BUT,RECENTLY,when they LLOT $100 BILLION TO SAVE JOBS,jobless n poor sgs got only $600 when FTs with HIGH SALARIES GET A MUCH MORE even if they have worked for a short while ?

    this PAP govt is clueless and haeartless towards own needy sgs but try to impress foreign sovereigns by squandering our RESERVES AWAY?

    STUPID AS TUPID CAN GET.

    WP CANNOT GO IT ALONE.
    IT HAS TO WORK WITH SDP N PSP.
    ELSE,ITS GONNA BE ANOTHER WAYANG…

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  • Democracy or Dictatorship:

    Democracy or Dictatorship?
    Thats a wrong question.

    Both can be good.

    Both have commonality :
    A single ruler given absolute power.

    And

    Both are humans who are not saints. They have weaknesses and flaws.

    So how can Democracy or Dicatorship be properly done when the rulers are not saints and trying to stay in power using absolute power?

    So , my point is Opposition ot Alternative parties should tell voters that as long as a ruler Abuses his Powers, you do not have a democracy. He will abuse democracy and make sure it wont succeed.

    So WE NEED A SAINT AS A RULER.

    Its not whether democracy or dictatorship because as long as the ruler is bad , neither system will work well for the people.

    Disclaimer: every word mentioned above excludes singapore.
    Why? For obvious reasons.

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  • xoxo:

    JBJ’s younger son is made a judicial commissioner.
    Good news or bad?
    Why is Philip not an OPPO member?
    Fame,power and $?
    Or,what else?

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  • nathan chen:

    @ Democracy or Dictatorship.

    It’s the people. It’s the voters.

    The majority of Singaporeans are cb people.

    Or lan jioax lang.

    Democracy with cb people – there is hope.

    Dictatorship with cb people – Like Simon Lim and there are many Simon Lims –

    there is little hope.

    Dictators can be outlived.

    CB people will always be there.

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  • Harder Truths:

    This is not about CPF per se. It is about the artificially implemented cost of living that takes the people’s livelihood and puts it in the pockets of the greedy MIW.

    Things were affordable and most people could retire at the correct age with decent funds – until the old dead despot took over and stole everything.

    Ask yourself if one person needs to be paid hundreds of millions for doing nothing – in fact mismanaging your money (which you will get a small pittance after retirement and then die because you cannot afford to live like a human being.

    People who vote for this evil regime will one day turn 55 and then let’s see if they are still so happy.

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