Need to overhaul CPF as problem mounts...

[TopSage]

1.. Sporeans contribution rate to CPF is
highest in the world for a.pension fund.

2.CPF has one.of lowest if not the lowest return
among pension funds.

3. Because much of it is channeled to housing, Singaporean retirement adequacy is among the worst or is the worst among developed countries.

4. CPF is highly regressive as it takes a larger % from lower wage earners and rich contribute smaller % of their income.

5. CPF is channelled to reserve building as GIC use it as a source of money for investment. S'pore's humongous but opaque reserves are build by burdening the citizens ESP poorer citizens.

Hence I propose the following reforms to fix the scheme:

1. Lower employee contribution rate to zero or a minimal sum so that singapireans have higher take home pay to use as they please rather than 'forced' to use
it for buying HDB. They still have the choice to buy HDB if they wish since money is in their hands to do as they please.

2. Stop allowing its use for HDB since contribution rate is reduced the money should be aimed at providing adequate retirement.

3. Manage the money to give singaporeans higher return. Stop using CPF to subsidize the GIC. 4. As long as income gap is high, implement significant topup
of lower income CPF to offset the regressive effectss
of the scheme.

 

[Papsmearer]

1.. Sporeans contribution rate to CPF is
highest in the world for a.pension fund.

2.CPF has one.of lowest if not the lowest return
among pension funds.

3. Because much of it is channeled to housing, Singaporean retirement adequacy is among the worst or is the worst among developed countries.

4. CPF is highly regressive as it takes a larger % from lower wage earners and rich contribute smaller % of their income.

5. CPF is channelled to reserve building as GIC use it as a source of money for investment. S'pore's humongous but opaque reserves are build by burdening the citizens ESP poorer citizens.

Hence I propose the following reforms to fix the scheme:

1. Lower employee contribution rate to zero or a minimal sum so that singapireans have higher take home pay to use as they please rather than 'forced' to use
it for buying HDB. They still have the choice to buy HDB if they wish since money is in their hands to do as they please.

2. Stop allowing its use for HDB since contribution rate is reduced the money should be aimed at providing adequate retirement.

3. Manage the money to give singaporeans higher return. Stop using CPF to subsidize the GIC. 4. As long as income gap is high, implement significant topup
of lower income CPF to offset the regressive effectss
of the scheme.

You must not be a sinkie. You have no idea how it works in SIngapore. The PAP have no intention to release your CPF to you if they can avoid it. It is the instated policy. Any reforms to the way they are currently siphoning money off will not be approved.

 

[winnipegjets]

1.. Sporeans contribution rate to CPF is
highest in the world for a.pension fund.

Sinkees will haut ah if it is a pension fund. It is not. It is a savings fund that pay mediocre rates, providing a source of cheap fund for the government to make lots of money for itself to spend on the ministers.

2.CPF has one.of lowest if not the lowest return
among pension funds.

See answer to #1.

3. Because much of it is channeled to housing, Singaporean retirement adequacy is among the worst or is the worst among developed countries.

If sinkees were made to pay out of pocket for their housing, they would kpkb and give it to the PAP. Using the CPF for housing is to hide the pain from sinkees.

5. CPF is channelled to reserve building as GIC use it as a source of money for investment. S'pore's humongous but opaque reserves are build by burdening the citizens ESP poorer citizens.

It is used to create a false picture of the GIC as a well run fund. The sinkapore government won't publish the detail of the funds return. Why? Because the 'growth' in the fund is due to inflow of CPF funds.

1. Lower employee contribution rate to zero or a minimal sum so that singapireans have higher take home pay to use as they please rather than 'forced' to use
it for buying HDB. They still have the choice to buy HDB if they wish since money is in their hands to do as they please.

Turn the CPF into a pension - define benefit plan, giving contributors 60 percent their 5 best years income.

2. Stop allowing its use for HDB since contribution rate is reduced the money should be aimed at providing adequate retirement.

Totally agree. Sinkees should face the sticker shock of their overpriced social housing and experience every month.

3. Manage the money to give singaporeans higher return. Stop using CPF to subsidize the GIC.

Make it into a pension and the fund managers will have to raise their game or be replaced.

 

[laksaboy]

1.. Sporeans contribution rate to CPF is
highest in the world for a.pension fund.

Your first point is already invalid. The CPF is not a pension fund, not by a long shot.

CPF is hidden taxation on your disposable income, which is then funneled into various uses that gets you deeper into debt (e.g. housing loan, study loan).

The govt still had to force people to purchase a mandatory annuity (CPF Life).

 

[Sinkie]

Your first point is already invalid. The CPF is not a pension fund, not by a long shot.

CPF is hidden taxation on your disposable income, which is then funneled into various uses that gets you deeper into debt (e.g. housing loan, study loan).

The govt still had to force people to purchase a mandatory annuity (CPF Life).

Have to agree.....

Clearly, if public housing had been kept low, there'll be alot of CPF left for most..........but HDB is deliberately kept high, hence private housing is also high, to feed the elites.........and nothing left in CPF for most.

On the other hand, fixed deposit interest had been kept suppressed by MAS since CPF came into being, to make CPF interest looks attractive.