Eric Tan failed to understand many Singaporeans have a real practical problem at hand. We just needed our CPF money badly. We don't need more GP essays on CPF.
He failed to understand that the economic structure of Singapore has changed (by design of the government). Today it is a high-costs country. Most retirees earned and saved small money when Singapore was a low-costs country. It is no fault of retirees. The only mitigating factor is capital appreciation of their HDB flats. So it is perfectly all right to monetise their HDB flats. The HDB should be building more studio apartments, rental flats and en-bloc projects. The retirees then release their bigger flats to the younger generation.
The locking of CPF and hence partial return starts at 55, not 65. It is so counter-intuitive to talk about longevity. The government knows many Singaporeans needed the money at 55. 1 out of 4 Singaporeans do not hold a job when they turned 55.
CPF starts from the day we start work, not at 55 or 65. Not a single soul is opting out of CPF (compulsory anyway). Everybody is happy to save. What we want is flexibility towards the tail-ends of our earning capacities. I repeat, 1 out of 4 Singaporeans who turned 55 do not have an income.
He failed to understand that policymakers have to sell public policies by managing expectations. The gradual raising of Minimum Sum over ten years from 2003 and Minimum Withdrawal Age are part of making unpopular policies more palatable. It is not that PAP buay siew (can't swim).
The MSM mentioned that 47% of CPFIS investors are making losses between 2004 and 2013. GIC is making losses too if you look at short term. There is a crisis every few years - Asia Financial Crisis, internet bubble, Iraq War, SARS, 911, sub-prime mortgage crisis, Dubai debt crisis, Eurozone crisis. Some people like to talk about higher returns as if it is so easy.
We should not fall for the higher interest rate argument. Interest rates are correlated to tenor. It would mean further deferring of CPF withdrawals. For the millionth time, our CPF is fully funded and individualised. It is very different from other countries where they need to punt. The CPF interest rates are really compensation for opportunity costs, not compensation for risks-taking.
Domestic interest rates depend on market conditions. MOF is able to borrow cheaply mainly because the benchmarks are low, not because it is paying little/no premium due to its AAA rating. Our money in the bank is attracting interest rates way below inflation too. The benchmarks are not always low. They were high in the past, they may be high in the future too.