Quote:
Originally Posted by fallen11
i think you have incorrect perception about CPF.
1. CPF is different from most other countries' pension system. CPF is what you pay is what you get with interest. Everyone has a personal account and the pension is fixed by what you contributed. Whereas other pension system is funding unlimited pension payouts with current social security tax.
2. The reason of government borrowing is not to cover CPF payouts. It is more likely that increased taxes are used to do so than from borrowings.
3. Governments are not so concerned by local currency liabilities. Why? because they can just do any of the 2 things to solve the issue: print money or raise taxes. Raise taxes you LL have to pay. Can you say no?
4. Locking up your funds is because dont want you to anyhow spend then no money come out and say government cruel never support old people. Most people are like this. They cant save money one. Let them have 100k they will finish it in 6 months, give it to some young girl and then cry poor.
Anyway CPF only covers the basic retirement expense. Its not enough and you shouldnt depend on it as the only means for retirement.
If you have spare cash, invest it yourself.
Forget CPF as its not something within your control.
|
No. I don't buy the reasoning behind that.
To your point no.1 i think the fact that there was increase in withdrawal age and min sum dispels the notion that cpf is "your" money. If it is my money then why need to increase withdrawal age and impose min sum?
Point no.2: This can be easily dispelled. Where do you think CPF gets its return from? Tip: The yield don't magically appear. They invest in government securities. You can google it.
Point 3: This has nothing to do with currency exchange rate. To your point about printing money, yes they have been printing money even currently but they can't print huge amounts of it when majority population reaches withdrawal age in the next 15-20 years as that would increase inflation tremendously. Increasing tax isn't glimg to work either as it cost votes and there is only so much the gov can milk out of a 6m population
Point 4: We are educated enough to manage our money. Plus we not living in a communist country where we need to gov to control how we spend our money. Sure there will be the few who spend all their mobey away quickly but are those the small minority not the majority. I mean its not as if with the min sum and increased withdrawal age, the gov will support those that have no money, no? So might as well give us the money and let us manage ourselves.
All in all cpf is more of a tax than a retirement fund because it is run like a ponzi scheme albeit a legal ponzi scheme and once there is fewer contribution than withdrawals the entire scheme will collapse