Major CPF policy shift on the way

(06-02-2015, 01:22 PM)Temperament Wrote:

(06-02-2015, 10:59 AM)egghead Wrote: That's a good demonstration of hard to please electorate.

Yes, we are all different ma. But do you know in the past , a certain number of years when banks's FD rate were higher then CPF's O A rate then what did our G did then? You were left on, your own device then. What risk free return from our G at that time? Nothing O. K. You had to take risk then or happy with 2.5 %{IRRC}.

If bank FD interest is higher than CPF OA, we can just deposit our CPF OA into bank FD, right?

(07-02-2015, 12:01 AM)NTL Wrote:

(06-02-2015, 01:22 PM)Temperament Wrote:

(06-02-2015, 10:59 AM)egghead Wrote: That's a good demonstration of hard to please electorate.

Yes, we are all different ma. But do you know in the past , a certain number of years when banks's FD rate were higher then CPF's O A rate then what did our G did then? You were left on, your own device then. What risk free return from our G at that time? Nothing O. K. You had to take risk then or happy with 2.5 %{IRRC}.

If bank FD interest is higher than CPF OA, we can just deposit our CPF OA into bank FD, right?

I keep on saying CPF rate is just floor rate and you are free to get a better return yourself, and people keep on ignoring that or misunderstanding that. So right now, I'm smiling.

(06-02-2015, 11:32 PM)pianist Wrote: just received a reply from town council today, sccc charges going to increase to $53.25 from april this year up from the current $51..that a hefty 4.4% increase...
did our cpf monies rate of returns from the interest increase so fast in a year if obediently keep in oa/sa?

Ha Ha. Talk about selective information. If your CPF funds have the kind of returns that is similar to the rate of increase of the s&cc charges for the past 10 years, I think you might wish to cry wor...

Heard Towncouncils headache is dunnowhich bank to place their excess millions collected fr sccc charges dunno how true is that

(07-02-2015, 07:36 AM)pianist Wrote: Heard Towncouncils headache is dunnowhich bank to place their excess millions collected fr sccc charges dunno how true is that

How abt POSB 1.88% promotion?

(05-02-2015, 11:03 PM)CCUV Wrote:

(05-02-2015, 10:59 PM)sg550319 Wrote:

(05-02-2015, 09:45 PM)CCUV Wrote:

(05-02-2015, 08:45 AM)Jacmar Wrote:

(05-02-2015, 07:27 AM)CCUV Wrote: All these talk about not having enough for retirement was down partially not having a good enough return on cpf....all these talk wouldn't even surface if return are reasonable.

I have to disagree with your view on this and the rest of those in the camp that says CPF should give us better returns. Just to be clear I was not in govt before and don't want to launch into a political debate on this.

Sure who don't want to get more for your savings but it comes with a risk. the CPF can give you more but are you prepared that in some yrs there might be zero or negative returns? In this world of near zero interest rates where can you get a risk free returns of >2.5%? In fact I still have my CPF OA $ which I can withdraw(I am pass 55) in there as I cannot find a risk free rate better than 2.5%. do let me know if you do.

The govt by giving >2.5%(some amt as much as 4.5%?) for your cpf money is already indirectly giving money to the pop when they could easily go out and issue bonds with lesser interest. just go look at what govt bonds paying now. as Oliver says we want more!!

The cpf system has failed badly my friend,you might have a different view. A good system wouldn't ask the cpf holder to extend their retirement age and all those boastful media saying about temasek and gic excellent return had not translate into better return without government increasing gst. I rest my case

actually you dun have a case. pl understand the system before throwing rocks. case in point, find out what is the new OZ retirement age.

fyi, i top up everything possible in CPF.

Seriously good for you if you choose to top up,I have nothing against people who think cpf is great.I personally wouldn't with those goal post changing rules. There are pension system which are way superior than sg. It all depend how you see things,half empty or half full.

It has nothing to do with changing goal pole.

Just curious and for sharing, share with us which pension scheme is good in this world and why better?

The use of CPF to buy property is the root cause.

Initially it was a great idea to allow people to own public housing. But over time, it was allowed for private too.

CPF is a type of pension and we do not have enough cash because its all tied up in concrete.
People dislike selling their homes when they are retired, and they would need to buy another to live in.

The value of the property may have risen, but that is the effect of even more CPF being used. We cannot deduce that it means we have a better 'return'.

Unfortunately, this train cannot be stopped.

I don't see any major shift in CPF policy. No increase in CPF return rate for CPF members, no full withdrawal of CPF funds either.

It is incredible that they can even claim that a larger monthly payout is tantamount to 'rewarding' CPF members.

I normally draw out $150 each time from the ATM for petty cash. So, if I draw out $200 now, am I being 'rewarded'?

^^ full withdrawal would be classified as a major shift. But will also be classified as a major mistake. And also tells us that we never learn from our past when 50% was being paid out

Cease paying property with CPF will be a major shift and a correct move to increase retirement payout

It's called cognitive conditioning. Now that the options are more varied, it is a 'reward'.
Anyway, any leeway is good. While the magnitude of this change is limited, the significance cannot be underestimated.
Hope it paves the way for more flexible use of the funds in the future.

While I wish for the money to be returned to us in full as and when we want it, I think it is unrealistic. It may cause too much instability within the system and cause many social problems as well. (now that the 2 casinos are so near). Personally, what I choose to do is to totally ignore what I have in CPF for retirement. If someone is holding your money and there's not too much you can do about it, the better way is to look for more money instead.