CPF & Medisave minimum sums
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raysusan:
why must they raise the min sum?
If minimum sum increases abt $10k per year going by the trend in the past few years, then the min sum when this guy hits 55 years old will be more than $450k, definitely not the current $150k. You get the picture now?Dora1:
[quote=\"Irrelevant\"]I'm surprised by the emotions exhibited here, but then again maybe I shouldn't be.
Being curious, I decided to do a simulation with the following assumptions:
1. Started with $2,000 pay at age 24.
2. Annualised increment of 3% a year =>pay at just b4 55 yrs is around $4,850.
3. Annual bonus (whether AWS or VB) assumed to be zero.
4. CPF Special Account contribution rates based on current rates, i.e. 6% at <35, 7% <45, etc.
5. Interest rate on CPF SA assumed to be 4%
6. Interest on CPF balance is calculated on a 1 year lag basis, i.e. new contributions to CPF is assumed to earn interest only in the following year.
7. The data point that once Medisave ceiling is reached, the Medisave contribution will go to CPF SA is ignored.
Given the above conservative assumptions, at age 55, CPF SA balance will become ....ta dah..... approximately $150k.
how is that going to help the people?[/quote]Inflation la, the biggest monster. -
Harlequin:
http://mycpf.cpf.gov.sg/CPF/my-cpf/reach-55/Reach55-2.htm
Inflation la, the biggest monster.
indeed, inflation is the killer for rising min sum. biggest jump in absolute $ was from 2008 to 2009 - $106,000 to $117,000 i.e. $11,000 difference. -
3Boys:
And what age should people be retiring, since they can be expecting to live to 80 on average? Should it be at 55, having worked 30 years from age 25 and expecting the savings of 30 years work to last them another 25 years? Should it be 65, so that savings from 40 years work can last them another 15? Which seems more realistic to you?
agree with you. in theory it is to force people to save more as few people save enough for their retirement.winchester:
[quote=\"raysusan\"]why must they raise the min sum?
how is that going to help the people?
but it is our money, cpf already is a forced savings and we should be able to draw what we can when we retire.
Taking everything out at age 55 is just courting disaster.
There is so much talk here about 'personal choice', as if thats the only thing that matters. If something goes wrong for those people who take out money early, the forumers here on KSP are not the ones picking up the pieces, it's the families of those people and taxpayers who bear the brunt. If government say we raise GST to support those pensioners who run out of money, how? You will happily support? Talk is cheap.
Of course we can all stick our heads in the sand and twist the government's arm........[/quote]some pts i agree.
should raise withdrawal age and peg with retirement age, no longer 55 but 63 or 65. people can withdraw all they want. if they want to spend it all foolishly, agree too, taxpayers should not bear the weight. but the hard part is those of us who can manage our finances well, or think we can mange our finances well, we want the flexibility to deal with our own money the way we see fit. -
winchester:
Winchester, there is no way the government can tell who is savvy and who is not, who will be irresponsible and who will not be. The role of the government is to ensure as much as possible, a safety net for all it's working adults.
some pts i agree.3Boys:
And what age should people be retiring, since they can be expecting to live to 80 on average? Should it be at 55, having worked 30 years from age 25 and expecting the savings of 30 years work to last them another 25 years? Should it be 65, so that savings from 40 years work can last them another 15? Which seems more realistic to you?
Taking everything out at age 55 is just courting disaster.
There is so much talk here about 'personal choice', as if thats the only thing that matters. If something goes wrong for those people who take out money early, the forumers here on KSP are not the ones picking up the pieces, it's the families of those people and taxpayers who bear the brunt. If government say we raise GST to support those pensioners who run out of money, how? You will happily support? Talk is cheap.
Of course we can all stick our heads in the sand and twist the government's arm........
should raise withdrawal age and peg with retirement age, no longer 55 but 63 or 65. people can withdraw all they want. if they want to spend it all foolishly, agree too, taxpayers should not bear the weight. but the hard part is those of us who can manage our finances well, or think we can mange our finances well, we want the flexibility to deal with our own money the way we see fit.
If you are a savvy investor, the $148k minimum sum should really not be a significant portion of your portfolio. Dare I say, if one is dependent on the $148k to be a big part of the portfolio, then one had better keep it untouched until later in life.
Spare a thought for the vulnerable amongst us.
Although we all say, 'the taxpayer should not bear the brunt of irresponsible behavior', guess what happens at the next GE when people start wheeling out videos of old ladies cleaning tables at the hawker centre? 'Oh, our government is so cruel, our old folks need to be working such hard lives', without thought to circumstances of how they got there or how the financing is supposed to occur.
I say, raise income taxes and raise GST, how many people would agree to that?
Te CPF draws admiring glances from many countries whose public finances are bust, where pensioners can't get paid. Yet here we are griping....... -
3Boys:
Investments are undertaken with the intention of profits but there is no guarantee that this will indeed be the outcome.Winchester, there is no way the government can tell who is savvy and who is not, who will be irresponsible and who will not be. The role of the government is to ensure as much as possible, a safety net for all it's working adults.
If you are a savvy investor, the $148k minimum sum should really not be a significant portion of your portfolio. Dare I say, if one is dependent on the $148k to be a big part of the portfolio, then one had better keep it untouched until later in life.
Many people lost money during the Lehman collapse. -
Coolkidsrock2:
Including Town Councils..
Investments are undertaken with the intention of profits but there is no guarantee that this will indeed be the outcome.
Many people lost money during the Lehman collapse.
Oops.. S&C charges gonna rise again.. -
limlim:
Haha
Including Town Councils..Coolkidsrock2:
Investments are undertaken with the intention of profits but there is no guarantee that this will indeed be the outcome.
Many people lost money during the Lehman collapse.
Oops.. S&C charges gonna rise again..
I was thinking of that too. -
Coming soon: CPF changes, help in rehiring workers
http://www.straitstimes.com/news/opinio ... s-20150110 -
Come July, MS is S$161,000. Will the next increase - 2016 - be another S$6-7k again?
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starlight1968sg:
Let see what are they going to do this timeComing soon: CPF changes, help in rehiring workers
http://www.straitstimes.com/news/opinio ... s-20150110
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