Uncle Swee Say doesn’t get it re CPF?

It’s incredible but I must accept it as the awful truth for why else would Mr Lim Swee Say give this comment on the ongoing CPF controversy?

Here is what he said: “Instead of thinking about whether you can spend your savings in the CPF at the age of 55, I think we should think about how can we help our Singaporeans to continue to remain employed, to continue to earn a good living, continue to have good jobs, and at the same time to continue to contribute to the CPF because the more money they have in CPF, the longer they defer the use of the CPF — this will mean they will have more for retirement.”

Folks, I think the whole kuffle-fle re the CPF isn’t about staying on in the workforce after age 55 but how members could get out of the workforce with their CPF money to goyang kaki.

Of course those who are fretting that they don’t have enough for their minimum sum and yet want to empty their CPF kitty are living in a parallel universe.

But to tell them to carry on working so that they can both build up their CPF and simultaneously delay the time when they need to tap the CPF isn’t going to convert them to the Government’s view.

Instead best to tackle the root of the problem — which is the desire to withdraw the minimum sum and at the same time cry foul that they don’t have enough in their CPF to cover the minimum sum.

Uncle Swee Say should ask G to redesign the CPF scheme for the sake of unionists who call him boss, if no one else. Put the most important thing first — which must be the minimum sum needed to feed workers too old or too disinclined to work.

Why not ask G to put the cart firmly behind the horse, not before it?

Which is first thing first.

Make sure members in the full bloom of working life are putting away the projected minimum sum required to keep their body and soul together when they are like 10X reboiled tea leaves. 🙄

If that sum ain’t in their CPF account, then no-touch for housing, medical bills, education, what have you, geddit?

Better still, once that sum has been saved, channel it to buy an annuity for disbursement at the official retirement age.

Lagi better if G could sweeten all this by lending, interest free, each adult Singaporean starting work the projected minimum lumpsum that would accrue to his/her cohort at retirement to buy an annuity.

Annuities bought when young with disbursement not starting till decades later will surely be more valuable and pay out more than one bought at 55 and disbursed just 10 years later.

Of course G would retain an interest in each annuity till the advance or loan has been fully paid for by the CPF member. And the CPF member would have every incentive to clear that debt because then and only then would he/she be able to tap the continuing stream of savings to buy homes, pay medical bills and other things that are allowed in today’s more liberalised CPF system.

If Uncle Swee Say can swing the CPF redesign this way, it would be a win-win situation for those who run the CPF and those today demanding the end of the CPF.

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4 thoughts on “Uncle Swee Say doesn’t get it re CPF?

  1. Pingback: Daily SG: 24 Jun 2014 | The Singapore Daily

  2. Get Tharman to explain how much a person needs to earn and save to meet the projected Minimum Scheme when he hits 55. Better still, use his “$1k household income can afford HDB flat example” to show us how the poor sod can achieve the Minimum Sum.

  3. No need lah, Uncle Sgcynic! Money speaks louder than words. G can say:”you at 25 will need $350K at 55 as minimum sum. I lend you that $. It will buy an annuity. But because we buy the annuity when you are so young, the loan will be much smaller than the projected MS, and we let time and compounding do the rest. You just make sure you pay me back the money lent to you without interest via your month CPF stream.” Neat, transparent and helpful.

    Btw, future comments left by people with fake email addresses will be sent to the trash bin, pronto!

  4. Pingback: Labour chief Lim Swee Say clarifies CPF comments | Inenet Consultancy Pte Ltd

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