GOVT'S OWN ENHANCED CPF EXAMPLE - ONLY $300 MONTHLY FROM 65? Sad!

[h=1]GOVT'S OWN ENHANCED CPF EXAMPLE - ONLY $300 MONTHLY FROM 65?[/h]
Post date:
27 Apr 2015 - 10:04am








[Pic Credit: CPF Borad]
CPF example of a 55 year old Singaporean
According to this post on CPF by the government.
“Mrs Ang will turn 55 in 2016 and has $40,000 in CPF savings. How will the new CPF enhancements help her prepare for retirement? Find out more on: http://sg.sg/1NHy4sB"
http://www.gov.sg/government/web/co.../CPF_postbudget_EN_strip1_v15.jpg?MOD=AJPERES
Can survive on $300?
The bottom line is - can Mrs Ang survive on $300 a month from age 65 and beyond, after accounting for inflation in the future?
The issues remain unaddressed?
The issue is that if Mrs Ang lives in any other country – her pension fund may be much more, as Singapore has the lowest real annualised rate of return among all national pension schemes in the world, since 1999.






Also, many countries actually spend money on their citizens’ pension payouts such that they are normally indexed for inflation.
In contrast, we do not spend a single cent from a cashflow perspective, as all the CPF contributions come from the citizens, annual contributions far exceed annual withdrawals, and the Government keeps an estimated 3 per cent or more of the annualised returns derived from CPF funds historically.
How many Singaporeans are like Mrs Ang at age 55 – with less than $40,000 in their CPF Ordinary and eSpecial accounts? About 1 in 3 Singaporeans?
We should be comparing and evaluating ourselves with the pension schemes of other developed countries, instead of with our old CPF scheme before the recent changes.

Win battles lose war
TRS Contirbutor

makapaaa said:

The issue is that if Mrs Ang lives in any other country – her pension fund may be much more

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If Mrs Ang lived in many other countries, she'd have absolutely nothing.

If Mrs Ang was a Greek, she would find that her promised $300 per month from her "pension" would have been slashed due to austerity measures.

thats cause the example's set in 2016.

most old people retiring in 2016 dont have jack shit.for $60000 they better be glad they are getting a annunity of $300 a month and cleaning toilets to supplement their income.

their greatest mistake of all was relying on the PAP and CPF to provide for their old age.

lucky i have avoided the mistake.i have $10k usd invested in the s&p index.even without putting a single cent in for the next 40 years,im gonna retire $314,000 richer in 2055.

frenchbriefs said:

thats cause the example's set in 2016.

most old people retiring in 2016 dont have jack shit.for $60000 they better be glad they are getting a annunity of $300 a month and cleaning toilets to supplement their income.

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I don't know what you mean by "most". All the sinkies I know have a lot more than $60,000 in their CPF accounts.

frenchbriefs said:

thats cause the example's set in 2016.

most old people retiring in 2016 dont have jack shit.for $60000 they better be glad they are getting a annunity of $300 a month and cleaning toilets to supplement their income.

their greatest mistake of all was relying on the PAP and CPF to provide for their old age.

lucky i have avoided the mistake.i have $10k usd invested in the s&p index.even without putting a single cent in for the next 40 years,im gonna retire $314,000 richer in 2055.

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Their greatest mistake was to be a salary slave.

Many people I know are too busy to bother about financial planning. They think that as long as they are fit and healthy, they will keep slogging and exchange their time and energy for salary. Only those who bother to think will strive to create multiple streams of income, by starting a small sideline, rental income, dividend or royalties or investing in property or business. They are in for a nasty surprise when they grow old, sick or too expensive. Their company will not extend to them the same loyalty they gave to the company.

JohnTan said:

Their greatest mistake was to be a salary slave.

Many people I know are too busy to bother about financial planning. They think that as long as they are fit and healthy, they will keep slogging and exchange their time and energy for salary. Only those who bother to think will strive to create multiple streams of income, by starting a small sideline, rental income, dividend or royalties or investing in property or business. They are in for a nasty surprise when they grow old, sick or too expensive. Their company will not extend to them the same loyalty they gave to the company.

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Well said. You certainly are a very intelligent person. I wish there were more here like you/

Leongsam said:

I don't know what you mean by "most". All the sinkies I know have a lot more than $60,000 in their CPF accounts.

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I'm pretty sure the demographics of SG is way bigger than the " sinkies " u know.the people that are retiring now are mostly the pioneer generation or the generation after.most of them work low paid blue collar jobs their whole lives and don't have a rich dad to pay off their uni fees and buy them 2 bungalows at district 9 in the 90s.

JohnTan said:

Their greatest mistake was to be a salary slave.

Many people I know are too busy to bother about financial planning. They think that as long as they are fit and healthy, they will keep slogging and exchange their time and energy for salary. Only those who bother to think will strive to create multiple streams of income, by starting a small sideline, rental income, dividend or royalties or investing in property or business. They are in for a nasty surprise when they grow old, sick or too expensive. Their company will not extend to them the same loyalty they gave to the company.

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What does it matter?what exactly is the purpose of CPF?the entire purpose is to help you plan and invest for your retirement for when u are no longer fit and healthy.it is there to male sure u have a nice pot of gold for you to cruise the seas of carribean.and enough money to take care of all ur sickness.but has it done that?it has barely even achieved the most basic of

Leongsam said:

If Mrs Ang lived in many other countries, she'd have absolutely nothing.

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In developed countries? My retired friends in Canada, US, UK, Sweden, Denmark, Norway, Finland, Australia are happily getting a pension cheque from government every month leh.

JohnTan said:

Their greatest mistake was to be a salary slave.

Many people I know are too busy to bother about financial planning. They think that as long as they are fit and healthy, they will keep slogging and exchange their time and energy for salary. Only those who bother to think will strive to create multiple streams of income, by starting a small sideline, rental income, dividend or royalties or investing in property or business. They are in for a nasty surprise when they grow old, sick or too expensive. Their company will not extend to them the same loyalty they gave to the company.

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I have so much money in CPF ...I should have been a multi-millionaire but government makan 85 percent of my returns. How to retire comfortably, like that?

frenchbriefs said:

thats cause the example's set in 2016.

most old people retiring in 2016 dont have jack shit.for $60000 they better be glad they are getting a annunity of $300 a month and cleaning toilets to supplement their income.

their greatest mistake of all was relying on the PAP and CPF to provide for their old age.

lucky i have avoided the mistake.i have $10k usd invested in the s&p index.even without putting a single cent in for the next 40 years,im gonna retire $314,000 richer in 2055.

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Very smart man. The investment pro in Temasek and GIC should be fired. Just hire you. You investment peformance is much better than bunch of overpaid scholars.

when i retire in angmo country, i get S$2000 per month!