Source: TR EMERITUS
CPF – An asset or a liability to YOU?
August 10th, 2014 | Author: Contributions
Every year less than half could meet the Minimum Sum since 2003
CPF is our life savings, how can it be a liability? By 55 we should all be happily getting it out from our CPF accounts for our retirement. Ok, the rules have changed. By 65 we should be happy, late than never.
The rude shock to CPF members, by 55 they are told that they ‘owe’ the CPF or the govt $155,000 in the Retirement Account and $43,500 in the Medisave Account. Yes, you need to let the CPF or govt have these sums of money like you owe them. If you don’t have enough in your CPF savings, or lesser than these sums in your CPF, you cannot take out your savings. But the CPF would be so kind to let you have $5,000. Or you can pledge your property to the CPF for half of the total sum of the total sum of $198,500, or is it half of the $155,000, with the CPF.
Put it whatever you like, isn’t this a liability, a huge sum of money that you now ‘owe’ to the CPF? Yes or No? By 55, many would find the CPF a liability instead of an asset in away.
This must be another Uniquely Singapore thing. You can owe the govt or a savings scheme money when you are supposed to be taking out your savings to live your golden years. And many Singaporeans are finding this damn stressful.
Oh, not to forget, if you sell your property bought using your CPF savings, you have to return the sum borrowed plus the equivalent of interests that the money should have earned over the same period to your CPF account even if you are retired, in your 80s or 90s or 120s. It is not that after the withdrawal age kicks in, whatever money you took out for the purchase of properties is none of the CPF business. All these open ended contributions to the CPF regardless of age must be driving many people crazy, except the people making these rules and collecting the money.
Chua Chin Leng aka redbean
* The writer blogs at http://mysingaporenews.blogspot.com
CPF – An asset or a liability to YOU?
August 10th, 2014 | Author: Contributions
Every year less than half could meet the Minimum Sum since 2003
CPF is our life savings, how can it be a liability? By 55 we should all be happily getting it out from our CPF accounts for our retirement. Ok, the rules have changed. By 65 we should be happy, late than never.
The rude shock to CPF members, by 55 they are told that they ‘owe’ the CPF or the govt $155,000 in the Retirement Account and $43,500 in the Medisave Account. Yes, you need to let the CPF or govt have these sums of money like you owe them. If you don’t have enough in your CPF savings, or lesser than these sums in your CPF, you cannot take out your savings. But the CPF would be so kind to let you have $5,000. Or you can pledge your property to the CPF for half of the total sum of the total sum of $198,500, or is it half of the $155,000, with the CPF.
Put it whatever you like, isn’t this a liability, a huge sum of money that you now ‘owe’ to the CPF? Yes or No? By 55, many would find the CPF a liability instead of an asset in away.
This must be another Uniquely Singapore thing. You can owe the govt or a savings scheme money when you are supposed to be taking out your savings to live your golden years. And many Singaporeans are finding this damn stressful.
Oh, not to forget, if you sell your property bought using your CPF savings, you have to return the sum borrowed plus the equivalent of interests that the money should have earned over the same period to your CPF account even if you are retired, in your 80s or 90s or 120s. It is not that after the withdrawal age kicks in, whatever money you took out for the purchase of properties is none of the CPF business. All these open ended contributions to the CPF regardless of age must be driving many people crazy, except the people making these rules and collecting the money.
Chua Chin Leng aka redbean
* The writer blogs at http://mysingaporenews.blogspot.com
End of article
:oIo::kma:
