MPs offer ideas to improve CPF

[tanjm]

Finally someone who posts this figure so clearly! Here are my comments

From GIC's website, they have been capable of producing 6.5% per annum over 20 years. On the contrary, CPF members are offered a coupon rates of 2.5% to 5.00%.

Lets now compare this to the insurance analogy, to be exact Tokio Marine. From Tokio marine's track record, I remember the group has been able to yield 7% for policyholders in its diversified portfolio and has a record of returning 5.25% (the advertised amount on their policy sheet). I am sure many forumers here will know the advertised 5.25% is never the real figure and the actual returns are closer to 4.75%. In the process of doing so, Tokio Marine has earn good profits and remunerated thousands of insurance agents and their supervisors commission for getting naive people to sign up life policies.

Using this analogy, I will like to ask: Do you think the coupon rates currently are fair to CPF members? Discuss.

Nothing is stopping you from buying an insurance product with your CPF money.

http://mycpf.cpf.gov.sg/Members/CPFSchem...nd_SDS.htm

[tanjm]

I don't think it's 100% in anything in this world. Can we imagine if someone can come out with a better CPF scheme and let the whole Singapore knows about it. And ask all those who wanted this new CPF scheme attend the speaker corner to sign a petition for the change. This is only an imagination, please.
But,
Albert Einstein once said, "Imagination is more powerful than knowledge."
Anyway, at least every 5 years you have got your one chance.

"Better"? G cannot win here. No matter what they do, they won't be able to please everybody. And someone will still go to Hong Lim park and kao beh kao bu

[tanjm]

No doubt, the first 90% of whole life is pathetic but that is because the initial returns are absorbed by the agents and sales charges incurred. However over the long run where people live until 66 years old and beyond, people are actually better off getting whole life insurance than putting your money in CPF!

So, buy insurance with your CPF then. This statement is specious.

http://mycpf.cpf.gov.sg/Members/CPFSchem...nd_SDS.htm

[tanjm]

I just find it hilarious that financen companies can earn millions a year administering something similar but the state can only give about same returns at no profits

Buy a ETF, insurance product, gold, stocks, unit trusts, property. Whatever you like. Your CPF interest is just your basic return when you don't do anything.

Would you rather the government take away all your choice in return for some higher rate? Kao Beh again?

http://mycpf.cpf.gov.sg/Members/CPFSchem...nd_SDS.htm

[Temperament]

[quote='Temperament' pid='85483' dateline='1402212164']
I don't think it's 100% in anything in this world. Can we imagine if someone can come out with a better CPF scheme and let the whole Singapore knows about it. And ask all those who wanted this new CPF scheme attend the speaker corner to sign a petition for the change. This is only an imagination, please.
But,
Albert Einstein once said, "Imagination is more powerful than knowledge."
Anyway, at least every 5 years you have got your one chance.

"Better"? G cannot win here. No matter what they do, they won't be able to please everybody. And someone will still go to Hong Lim park and kao beh kao bu
[/quot
Of course, no G in the world can please everyone of their citizens. That's why our G set out the speakers corner. I think it's very clever of G to have the speakers corner. Don't you think so? i do.

[Freenasi]

However over the long run where people live until 66 years old and beyond, people are actually better off getting whole life insurance than putting your money in CPF!

Is a private company and a State comparable?

My curreny insurance policy is actually paying more than the cpf rate. There is a small dip in the reversionary bonus during 2008 but the rest of the years are much above 2.5%. Again, I do not personally believe the 'guarantee' of self-declare by the board. When things happened, all this boast about guarantee are all BS.

[Freenasi]

It is true that OA is currently usable for investments, however, given the OA is always used to draw down for our housing needs, the end result is that for low/middle-income individuals, our SA balance at 55 is equal or slightly higher than OA balance.

This is another example of why the system needs a revamp. The use of OA for housing has lead to depleted savings because of high flat prices.

By tying OA to property prices means the government has to control flat prices. Which hopefully they can do now with the property cooling measures and increased supply.

This is probably a grave mistake made and is hard to be rectified. A lot of cpf money are alr ploughed into properties and they cannot rock the boat and displease too many. Perhaps during the time when such policies are implemented they are not well debated with the monopoly parliament then.

I will think the gov need to enhance the return of the citizens' cpf money. Currently the gov also provide the same return to PRs' cpf. Maybe we should reduce the interest rate to foreigners' cpf money? i feel that many policies should be crafted with more considerations and serve the citizens' needs better. Especially so when the gov has the overwhelming financial resources.

[tanjm]

However over the long run where people live until 66 years old and beyond, people are actually better off getting whole life insurance than putting your money in CPF!

Is a private company and a State comparable?

My curreny insurance policy is actually paying more than the cpf rate. There is a small dip in the reversionary bonus during 2008 but the rest of the years are much above 2.5%. Again, I do not personally believe the 'guarantee' of self-declare by the board. When things happened, all this boast about guarantee are all BS.

So buy an insurance policy with cpf then. Why grumble?

[chialc88]

Tan,
I also do not understand the current complaints too.
There seems to be a problem but it's a non issues.
I mean there are bigger problem to address but now we are saying LHL takes Singaporean $$$ to invest???

NVM, I am just having my breakfast.

Earth day - save the world everyday.

[Temperament]

i also don't understand why people who are happy and contented with CPF need to join in this CPF forum. And makes people who are not so happy with some aspects of CPF suspect something is amiss with people who are happy with CPF.