Govt issues long reply to Heart Truths on CPF issues

Confuseous · May 9, 2014

Myth 4: The Minimum Sum prevents us from using our CPF money.

This is not true. The Minimum Sum(MS) is adjusted for inflation on an annual basis for each cohort. This is necessary because the retirement income needed in real terms for someone who turns 55 in 2014 will not be the same as what would be needed for someone who turns 55 in 2024. $100 today would be worth less than $100 in 10 years’ time.

Considering that a price of your favourite kopi or kaya toast would keep increasing due to inflation, it helps to set aside a sustainable nest egg.

The Minimum Sum exists to ensure that our nest egg is spread out comfortably to last us not just for one or two years after retirement, but throughout our golden years.

The adjustment for inflation will not affect the Minimum Sum of people who have already turned 55. Here is a table of the changes:

http://www.gov.sg/government/web/content/govsg/classic/factually/factually_20140415_cpfmoniesfacts

eKiller · May 9, 2014

Whatever lah, you win lah...... you cheng hu mah.... I think I better calculate and start returning the interests that my bank is offering on whatever amount that I have had withdraw so far from my bank saving account.... :*:

McDonaldsKid · May 9, 2014

Tell us how you derive the minimum sum though!!!!

halsey02 · May 9, 2014

McDonaldsKid said:
Tell us how you derive the minimum sum though!!!!

Need to to waste time & breadth on CPF....the money belongs to them & CPF is a charity....

laksaboy · May 9, 2014

The minimum sum serves no other purpose than to keep a hefty sum of money locked up in the CPF coffers.

A somewhat similar analogy would be like using a coupon discount voucher, and the fine print on it says you'll have to spend a minimum of $100 to qualify for a discount.

If you really wanted to help the people with their retirement and keep a sustainable nest egg, you would have upwardly adjusted the pittance the old folks are collecting periodically, with little or no adjustment to the minimum sum. A rising minimum sum exacerbates inflationary concerns, because in effect you would be denying more people from getting that pittance. What you're doing is basically shifting goal posts.

Wow, PAP govt... your best and brightest working in the 'rapid response team' came up with that official response? I tip my hat to you. :rolleyes:

In actual fact, I can see you're afraid. You're scared shitless, because you know an angry group of baby boomers can have serious political ramifications for the Lightning Tribe.

For younglings such as yours truly, I'll just take out the popcorn and enjoy the show. :cool:

halsey02 · May 9, 2014

laksaboy said:
The minimum sum serves no other purpose than to keep a hefty sum of money locked up in the CPF coffers.

A somewhat similar analogy would be like using a coupon discount voucher, and the fine print on it says you'll have to spend a minimum of $100 to qualify for a discount.

If you really wanted to help the people with their retirement and keep a sustainable nest egg, you would have upwardly adjusted the pittance the old folks are collecting periodically, with little or no adjustment to the minimum sum. A rising minimum sum exacerbates inflationary concerns, because in effect you would be denying more people from getting that pittance. What you're doing is basically shifting goal posts.

Wow, PAP govt... your best and brightest working in the 'rapid response team' came up with that official response? I tip my hat to you.

In actual fact, I can see you're afraid. You're scared shitless, because you know an angry group of baby boomers can have serious political ramifications for the Lightning Tribe.

For younglings such as yours truly, I'll just take out the popcorn and enjoy the show.

From Tharman the Bald....55 years & above 675,000, 65 years & above 450,000, that means those born between before 1949 to the founding of the "lightning tribe" 1959....can tip them over to the deep blue sea...it is 1,125,000 , the opposition must court these people....or they make up the 60%.....deaf, blind & dumb??

winnipegjets · May 9, 2014

Turn the CPF into a pension scheme. With that huge pool of funds, the government can easily get the returns to support a pension fund that pays 35 percent of a contributor's income.

frenchbriefs · May 9, 2014

if they are worried about inflation and real world wages why the fark dont they increase the interest of CPF ordinary and special accounts to 8% a year??????are u muthafarkers stupid or what?????jesus even putting our money in index funds will guarantee a far greater return in 30 years!!!!

xingguy · May 9, 2014

frenchbriefs · May 9, 2014

xingguy said:

why the fark year 2009 increase 10%?is there something special going on in singapore?inflation yoyo?

wah lao guys i tell u what is happening,singapore is doomed.......remember at the base of its algortithm and theoreotical function,CPF is nothing more than a ponzi fund used to fuel the(HDB) property bubble,2009 increase by 10% is because the oil is running out in the ponzi fund....very soon there will be a systemic crash(too much HDB sinkie debt,not enough CPF to cover),ur property will be worthless and there will be nothing left in ur cpf accounts because it all went to fuel the fake HDB bubble.....sinkies will be left holding the biggest bag of odorous excrement(bag of shit) ever assembled in mankind.

tolong ah amitabah!!!!!!!!!help us jesus christ!!!!

halsey02 · May 9, 2014

frenchbriefs said:
why the fark year 2009 increase 10%?is there something special going on in singapore?inflation yoyo?

wah lao guys i tell u what is happening,singapore is doomed.......remember at the base of its algortithm and theoreotical function,CPF is nothing more than a ponzi fund used to fuel the(HDB) property bubble,2009 increase by 10% is because the oil is running out in the ponzi fund....very soon there will be a systemic crash(too much HDB sinkie debt,not enough CPF to cover),ur property will be worthless and there will be nothing left in ur cpf accounts because it all went to fuel the fake HDB bubble.....sinkies will be left holding the biggest bag of odorous excrement(bag of shit) ever assembled in mankind.

tolong ah amitabah!!!!!!!!!help us jesus christ!!!!

Maybe in 2009 our maverick investor's mam' ho ho ho, punt long too much...buy very high & invest very, very, very long term...

GoldenDragon · May 9, 2014

Vote them out to smell your CPF$$$$!

McDonaldsKid · May 9, 2014

I never knew the inflation rates in Singapore were so high. I thought they always told us inflation is low here. :rolleyes:

3_M · May 9, 2014

Confuseous said:
Myth 4: The Minimum Sum prevents us from using our CPF money.

This is not true. The Minimum Sum(MS) is adjusted for inflation on an annual basis for each cohort. This is necessary because the retirement income needed in real terms for someone who turns 55 in 2014 will not be the same as what would be needed for someone who turns 55 in 2024. $100 today would be worth less than $100 in 10 years’ time.

Considering that a price of your favourite kopi or kaya toast would keep increasing due to inflation, it helps to set aside a sustainable nest egg.

The Minimum Sum exists to ensure that our nest egg is spread out comfortably to last us not just for one or two years after retirement, but throughout our golden years.

The adjustment for inflation will not affect the Minimum Sum of people who have already turned 55. Here is a table of the changes:

http://www.gov.sg/government/web/content/govsg/classic/factually/factually_20140415_cpfmoniesfacts

if it purely to compensate for inflation, then shouldn't the rate if increase correspond with the inflation rate?

golden · May 10, 2014

The chart shows the increases % above cof payout 4%
If adjusting for inflation is higher than 2.5% or 4%, gov should inccrease the cof interest to same as inflation % each year

mojito · May 10, 2014

winnipegjets said:
Turn the CPF into a pension scheme. With that huge pool of funds, the government can easily get the returns to support a pension fund that pays 35 percent of a contributor's income.

And where would we find the money to reclaim land and pay bonuses and raises for our hardworking senior civil servants? Absolutely preposterous!

Kangtangman · May 10, 2014

halsey02 said:
Maybe in 2009 our maverick investor's mam' ho ho ho, punt long too much...buy very high & invest very, very, very long term...

May be during then Temasek made big losses in Citigroup and UBS? This need to verify.

Thick Face Black Heart · May 10, 2014

GoldenDragon said:
Vote them out to smell your CPF$$$$!

We need the oppo parties to state categorically they will undo the minimum sum and cpf life scheme if they are voted into power.

ILovePAP · May 10, 2014

Thick Face Black Heart said:
We need the oppo parties to state categorically they will undo the minimum sum and cpf life scheme if they are voted into power.

No opposition will do that...suicide ... unless oppo suggest interest rate increase to offset increase in min sum

GoldenDragon · May 10, 2014

Thick Face Black Heart said:
We need the oppo parties to state categorically they will undo the minimum sum and cpf life scheme if they are voted into power.

Yes. They will surely get the support of many voters. Just hope the $$$$ is still around.

Govt issues long reply to Heart Truths on CPF issues

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