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Then there is the Medisave Accounts to fill up and at current rate, more than $100k will have to be set aside as untouchable in the Medisave Minimum Sum Account. Technically there could be nothing left to be set aside for the Retirement account at least after the flat is fully paid in 25 years time.
By the age of 55 or 65 the CPF Life Scheme will kick in and whatever money left in the CPF would be compulsory acquired to pay for their retirement annuities. Luckily the Medisave Account is still untouched by any compulsory scheme, but not for long. The money in the Medisave Account will be compulsorily acquired too to pay for Medishield Life once the scheme is finalized.
The net effect of the two compulsory schemes means that the Govt has decided for you how your money must be spent. In the CPF Life which is an annuity scheme, there is still hope of getting something back if one lives long enough.
In the case of Medishield Life, it is paying and nothing is coming back except when one needs hospitalization or is seriously ill and provided the illness is covered by the scheme. Read the fine prints and the exclusion clauses carefully.
The Govt effectively has a hold on the CPF savings of its citizens through a monopoly public housing scheme that will feed on the savings of its citizens for the first 25 years and a CPF Life for the next 30 plus years. As for the Medishield Life, this is still work in progress and the payment into this scheme could come very early, maybe from the day one starts working and contributing to the CPF.
- http://mysingaporenews.blogspot.sg/2013/08/managing-peoples-life-savings.html
By the age of 55 or 65 the CPF Life Scheme will kick in and whatever money left in the CPF would be compulsory acquired to pay for their retirement annuities. Luckily the Medisave Account is still untouched by any compulsory scheme, but not for long. The money in the Medisave Account will be compulsorily acquired too to pay for Medishield Life once the scheme is finalized.
The net effect of the two compulsory schemes means that the Govt has decided for you how your money must be spent. In the CPF Life which is an annuity scheme, there is still hope of getting something back if one lives long enough.
In the case of Medishield Life, it is paying and nothing is coming back except when one needs hospitalization or is seriously ill and provided the illness is covered by the scheme. Read the fine prints and the exclusion clauses carefully.
The Govt effectively has a hold on the CPF savings of its citizens through a monopoly public housing scheme that will feed on the savings of its citizens for the first 25 years and a CPF Life for the next 30 plus years. As for the Medishield Life, this is still work in progress and the payment into this scheme could come very early, maybe from the day one starts working and contributing to the CPF.
- http://mysingaporenews.blogspot.sg/2013/08/managing-peoples-life-savings.html
