Wednesday, May 28, 2014

Why do we need a minimum sum now when ...

There have been a slew of changes these past few years on the CPF with regard to the housing withdrawal limits. In fact, after all these changes, a thought hit me. Do we still need a CPF minimum sum?

Reason is very simple. We are not in control of our CPF savings. Once a limit and the law is in place to minimise the withdrawal for property, then the employers and the law that states the CPF contribution rates determine and controls how much CPF savings we have.

Since we have limited control over how much money is inside our CPF savings, then shouldn't the CPF minimum sum be removed? Having a minimum sum now will serve no purpose since most of the withdrawal limits are mostly in place.

Instead, emphasis now should be put in other areas that will result in an increase in the CPF savings. Putting a minimum sum will not serve much purpose because we cannot control how much savings is inside the CPF account unless we put the meager amount that goes into our bank account into it ourselves, and not see that money until ... ... well. We do not know until we reach 55.

Go figure...

1 comment:

Anonymous said...

Read the papers, us daft Singaporean are going to get screwed again. Review of the CPF scheme according to the PM means extending the retirement age beyond 65, what the PM did not say is that the withdrawal age would also be adjusted accordingly and will be increased to beyond the present 55. Get ready to bend over Singaporeans

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