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[h=1]WHO IS CPF MINIMUM SUM DESIGNED FOR?[/h]
Post date:
4 Jun 2014 - 7:49pm
The government recently announced CPF MS increase to $155,000 for those reaching 55 years old on 1[SUP]st[/SUP] July this year.
This has caused much anger amongst the general public. After paying for the rising costs of living (especially housing) there is little left in their CPF.
Moreover the MS is expected to increase further to take care of longer life span and inflation.
So people are generally upset that they can never catch up with their retirement monies!
During our working years, our main costs of living go to:
1. Housing (30%-40%) 2. Children (20%) 3. Transport (20%)
On retirement our house mortgage would have been paid up, our children would have finished their education and be independent, and transport cost would be minimal (those with cars can choose to do away).
Let me give another analogy.
During my recent holiday trip, I went for an afternoon sightseeing and spent $10 on coffee and some snacks. The ladies spent few hundred $ on shopping!
My point is after retirement the cost of living can drop very low, and depends on one’s lifestyle choice.
The problem with CPF MS is there is Only 1 target for all citizens, regardless of Poor, Middle class or Rich!
Take the Rich. They have more assets, investment incomes than CPF MS.
Whereas the CPF MS may be Too Much for the low income Poor. Imagine for someone earning $1000 monthly, the new MS of $155,000 works out to More than 10 years of his pay.
Whereas in my case, it works out to Less than 1 year my last drawn salary!
Proposal.
To address the negative perceptions and unhappiness, consider to set different CPF MS targets:
1 for the low income and another for middle and high income^.
^The Rich do Not care CPF MS, but neither should they be excluded.
Poh Moh
TRS Contributor
Post date:
4 Jun 2014 - 7:49pm
The government recently announced CPF MS increase to $155,000 for those reaching 55 years old on 1[SUP]st[/SUP] July this year.
This has caused much anger amongst the general public. After paying for the rising costs of living (especially housing) there is little left in their CPF.
Moreover the MS is expected to increase further to take care of longer life span and inflation.
So people are generally upset that they can never catch up with their retirement monies!
During our working years, our main costs of living go to:
1. Housing (30%-40%) 2. Children (20%) 3. Transport (20%)
On retirement our house mortgage would have been paid up, our children would have finished their education and be independent, and transport cost would be minimal (those with cars can choose to do away).
Let me give another analogy.
During my recent holiday trip, I went for an afternoon sightseeing and spent $10 on coffee and some snacks. The ladies spent few hundred $ on shopping!
My point is after retirement the cost of living can drop very low, and depends on one’s lifestyle choice.
The problem with CPF MS is there is Only 1 target for all citizens, regardless of Poor, Middle class or Rich!
Take the Rich. They have more assets, investment incomes than CPF MS.
Whereas the CPF MS may be Too Much for the low income Poor. Imagine for someone earning $1000 monthly, the new MS of $155,000 works out to More than 10 years of his pay.
Whereas in my case, it works out to Less than 1 year my last drawn salary!
Proposal.
To address the negative perceptions and unhappiness, consider to set different CPF MS targets:
1 for the low income and another for middle and high income^.
^The Rich do Not care CPF MS, but neither should they be excluded.
Poh Moh
TRS Contributor
