Dec 16 at 1:55pm
CPF: Delay your payout age to 90 years old to get higher returns
Singapore's retirement fund CPF Board has just issued a new propaganda message calling for Singaporeans to delay their payout age from 65 to 90 years old if they want a higher return.
The CPF Board, managed by the Ministry of Manpower, promised that they will pay 7% interest rates instead of the usual 5% in the Retirement Account. The government newspaper, Straits Times, published the propaganda half-truth today (Dec 16), giving an example of a CPF account holder seeing her CPF payout increase by 60% when she gets to 90 years old under a new scheme called "Escalating Plan":
"Retiree and former accountant Chew, who declined to give her full name, switched from the CPF Life Standard Plan to the Escalating Plan earlier this year...
Ms Chew had about $141,000 in her CPF Retirement Account (RA) as of March this year. When she reaches her payout eligibility age of 65, her monthly payout will range from $825 to $899 for the initial 12 months.
The payout will then increase by 2 per cent a year. Assuming she does not make any CPF top-ups to her RA from now, her monthly payout will grow to $1,353 to $1,474 when she reaches 90."
The new CPF scheme aims to penalise Singaporeans who withdraw their CPF money at age 65, as the group will earn 2% lesser each year.
In the past 14 years since Prime Minister Lee Hsien Loong took premiership and the Chairman position of GIC, the CPF interest rate has been depressed at 2.5%. The dictator Prime Minister attributed the low interest rate to "market forces", but he failed to prove his case when CPF is compared to other similar superannuation funds administrated by other governments.
For example, CPF's former sister fund, the EPF in Malaysia, returns 6.4% in 2017.
GIC has in recent years reported massive losses, but the Prime Minister - who draws an undisclosed salaries as GIC Chairman - refused to disclose the actual amount lost. In 2018, GIC reported that the 20-year annualised returns had fallen from 4% to 3.4%.
Through legal corruptions, Prime Minister Lee Hsien Loong lowered GIC's obligatory payment to the CPF Board, and increased GIC's managed funds by restricting CPF withdrawals and depressing interest rates for Singaporeans.
Today, most Singaporean elderly work in demeaning menial jobs like cleaners and security guards, taking home less than S$900 a month after CPF deductions.
The CPF Withdrawal Age was increased from 55 to 65, and the mandatory Minimum Sum nearly tripled from S$80,000 to S$181,000.
CPF: Delay your payout age to 90 years old to get higher returns
Singapore's retirement fund CPF Board has just issued a new propaganda message calling for Singaporeans to delay their payout age from 65 to 90 years old if they want a higher return.
The CPF Board, managed by the Ministry of Manpower, promised that they will pay 7% interest rates instead of the usual 5% in the Retirement Account. The government newspaper, Straits Times, published the propaganda half-truth today (Dec 16), giving an example of a CPF account holder seeing her CPF payout increase by 60% when she gets to 90 years old under a new scheme called "Escalating Plan":
"Retiree and former accountant Chew, who declined to give her full name, switched from the CPF Life Standard Plan to the Escalating Plan earlier this year...
Ms Chew had about $141,000 in her CPF Retirement Account (RA) as of March this year. When she reaches her payout eligibility age of 65, her monthly payout will range from $825 to $899 for the initial 12 months.
The payout will then increase by 2 per cent a year. Assuming she does not make any CPF top-ups to her RA from now, her monthly payout will grow to $1,353 to $1,474 when she reaches 90."
The new CPF scheme aims to penalise Singaporeans who withdraw their CPF money at age 65, as the group will earn 2% lesser each year.
In the past 14 years since Prime Minister Lee Hsien Loong took premiership and the Chairman position of GIC, the CPF interest rate has been depressed at 2.5%. The dictator Prime Minister attributed the low interest rate to "market forces", but he failed to prove his case when CPF is compared to other similar superannuation funds administrated by other governments.
For example, CPF's former sister fund, the EPF in Malaysia, returns 6.4% in 2017.
GIC has in recent years reported massive losses, but the Prime Minister - who draws an undisclosed salaries as GIC Chairman - refused to disclose the actual amount lost. In 2018, GIC reported that the 20-year annualised returns had fallen from 4% to 3.4%.
Through legal corruptions, Prime Minister Lee Hsien Loong lowered GIC's obligatory payment to the CPF Board, and increased GIC's managed funds by restricting CPF withdrawals and depressing interest rates for Singaporeans.
Today, most Singaporean elderly work in demeaning menial jobs like cleaners and security guards, taking home less than S$900 a month after CPF deductions.
The CPF Withdrawal Age was increased from 55 to 65, and the mandatory Minimum Sum nearly tripled from S$80,000 to S$181,000.
