CPF & Medisave minimum sums

[TheAnswer]

I think we can’t depend on our CPF alone for our golden years. We need to have some investment plans and savings plans. I still have 24 more years before I reach 55. Planning for retirement starts when one is young (starting from your first pay). No point complaining about things we cannot change.

[TheAnswer]

3Boys:

MMM:

That we will not live to see our CPF $....

When the average life span of a Singaporean is 80? When at age 65, about half of them will live to 85 and beyond?

http://mycpf.cpf.gov.sg/Members/Gen-Info/CPF_LIFE

I don't think the issue is whether we will live to see our CPF$, the question is whether our CPF dollars will live long enough to see the end of our lives.

Is $148K enough for 20+ years of living?

We have similar thinking :hi5:

[3Boys]

TheAnswer:

3Boys:

[quote=\"MMM\"]That we will not live to see our CPF $....

When the average life span of a Singaporean is 80? When at age 65, about half of them will live to 85 and beyond?

http://mycpf.cpf.gov.sg/Members/Gen-Info/CPF_LIFE

I don't think the issue is whether we will live to see our CPF$, the question is whether our CPF dollars will live long enough to see the end of our lives.

Is $148K enough for 20+ years of living?

We have similar thinking :hi5:[/quote]Thanks. I've always scratched my head about this negativity towards CPF, and the perception that it somehow 'benefits' the well-off more than the less well off.

[Dora1]

TheAnswer:

I think we can't depend on our CPF alone for our golden years. We need to have some investment plans and savings plans. I still have 24 more years before I reach 55. Planning for retirement starts when one is young (starting from your first pay). No point complaining about things we cannot change.

I think there lies the irony. When CPF was 1st started. It was touted as THE scheme to take care of our retirement. Our parents era, hdb flats were super cheap. Most of them only took 10-15 years loan on single income. a lot of them who took out all the CPF at 55, are retired quite comfortably (not extravegrant, but ok). Of cos there are the minority who spent all their life savings in Batam. But is it fair to lock up every citizen's money just because of the minority who doesn't know how to do their own financial planning?
Another point is that now with the sky high property prices, most people have very minimal CPF left anyway. I know of so many people who only have $100 in their CPF account every month after paying for the mortgage. So is CPF is still a relevant retirement scheme in the 1st place?

[TheAnswer]

3Boys:

TheAnswer:

[quote=\"3Boys\"]

I don't think the issue is whether we will live to see our CPF$, the question is whether our CPF dollars will live long enough to see the end of our lives.

Is $148K enough for 20+ years of living?

We have similar thinking :hi5:

Thanks. I've always scratched my head about this negativity towards CPF, and the perception that it somehow 'benefits' the well-off more than the less well off.[/quote]I am self employed. People often ask me why I bother to contribute to CPF and stuff like that. In my heart, I do what I should. I need to plan for my future. It is not the government's job. Like it or not, it's still our own responsibility at the end of the day.

[Dora1]

3Boys:

Thanks. I've always scratched my head about this negativity towards CPF, and the perception that it somehow 'benefits' the well-off more than the less well off.

Well, the thing is, for the very well off, they will definitely have other savings/investment/passive income for retirement. So they totally don't care if their $149K is returned to them or not.

For the man on the street who struggle to save maybe $100 per month, how much non CPF savings would they have when they retire? Especially that same $100 per month is also dipped into for own medical bills, parent's medical bills, children medical bills, etc. That $149K is important for them when they retire. Medisave doesn't take care of all medical bills.

[sparks]

[quote]Thanks. I've always scratched my head about this negativity towards CPF, and the perception that it somehow 'benefits' the well-off more than the less well off.[/quote]
[quote]I am self employed. People often ask me why I bother to contribute to CPF and stuff like that. In my heart, I do what I should. I need to plan for my future. It is not the government's job. Like it or not, it's still our own responsibility at the end of the day.[/quote]Absolutely agreeing with both of you.

[Funz]

3Boys:

TheAnswer:

[quote=\"3Boys\"]
When the average life span of a Singaporean is 80? When at age 65, about half of them will live to 85 and beyond?

http://mycpf.cpf.gov.sg/Members/Gen-Info/CPF_LIFE

I don't think the issue is whether we will live to see our CPF$, the question is whether our CPF dollars will live long enough to see the end of our lives.

Is $148K enough for 20+ years of living?

We have similar thinking :hi5:

Thanks. I've always scratched my head about this negativity towards CPF, and the perception that it somehow 'benefits' the well-off more than the less well off.[/quote]You are not alone. I was wondering if I have misunderstood or missed out on some important points but however I try to understand I still come back to the same conclusion. It is another way to save/plan for our retirement/old age. If the money doesn't go to CPF, I will have to put it elsewhere to preserve and preferably grow it and leave it there for the long term to support my financial needs when I am in my old age.

[3Boys]

Common myths:


1) I see so many young people dying of this and that, don't think I'll ever live to see my CPF money.

It never fails to astonish me how many smart and capable people buy into that notion above, when the average life expectancy of a Singaporean is now into the 80s and rising year by year. The fact is the majority of Singaporeans WILL live to see ALL their CPF money.

2) CPF is MY money and I can take it out any time I wish, it is my right.

Ok, CPF is not your MONEY, CPF is your RETIREMENT MONEY. There is an important difference. Much like pension schemes, the employer/employee enforces a stored stash annually, that they can feed the pensioner a steady flow of income in the retirement years. As with all such things, you should only really take out how much you have put in, and the flow of the return needs to be controlled so one does not blow it all in one shot and leave one destitute. Who's to say a few misguided folk will not take out the cash and blow it at the tables in Macau?

Some of you may be savvy at managing your money, but don't forget your children's income taxes will be going towards supporting those who are not.

Therefore, it your money, but it is your money with conditions.

3) It's ok to work past 55 if you have a choice and like your job but not ok to work if you don't.

Go figure that one........ :siao:

I don't think my Dad will have an issue quitting and sailing around the region in a hundred foot motorised yacht, IF he were some tycoon with millions in the bank. But he doesn't and he is not. Yes, he has an interesting job and it pays reasonably, but the main consideration of staying employed is still financial. And if he, who can quite comfortably retire (without the yacht), stays at a job for financial security, then why do people in worse off financial situations feel entitled to put up their feet at 55?

[3Boys]

Dora1:

3Boys:

Thanks. I've always scratched my head about this negativity towards CPF, and the perception that it somehow 'benefits' the well-off more than the less well off.

Well, the thing is, for the very well off, they will definitely have other savings/investment/passive income for retirement. So they totally don't care if their $149K is returned to them or not.

For the man on the street who struggle to save maybe $100 per month, how much non CPF savings would they have when they retire? Especially that same $100 per month is also dipped into for own medical bills, parent's medical bills, children medical bills, etc. That $149K is important for them when they retire. Medisave doesn't take care of all medical bills.

The more important it is to the individual, the greater thought that has to be applied in terms of drawing it down. One then needs to give great consideration as to whether one should really be leaving oneself without income after age 55 (i.e. retire), if that person so desperately needs the CPF monies, because it will not be enough.