cpf fails and ALWAYS NOT enough

[leetahbar]

just got an email from cpf. years back, they told us this enforced national saving would see us through during the golden twilight years. our withdrawal age was 55 yo. now, they tell us another thing. yes, the nation shall follow. our presentwithdrawal age is 60. come another 5 yrs or so, they shall tell us another thing. what would be our final withdrawal age? maybe never cos even if u hit 60 yo now, u gotta maintain at least $130K in ur saving.


Dear CPF Member


Singapore Budget 2012 - Initiatives Relating to CPF

Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam announced the following initiatives relating to CPF during the FY2012 Budget Statement in Parliament on 17 February 2012:

• Increase in CPF Contribution Rates for Older Workers

Lower CPF contribution rates for older workers were introduced to help improve the employability of older workers when seniority-based wage structures were prevalent. Since then, older workers have become more employable and progress has been made in reducing seniority-based wage rigidities. This positive trend is expected to continue. After consultation with its tripartite partners, the Government has reached a consensus to maintain in the long term the same CPF contribution rates for all workers up till age 55, rather than age 50.

The changes to CPF contribution rates for older workers will be introduced gradually to moderate the cost impact on employers and to take into account the subdued global economic outlook in the near term. The following increases as shown in the table below will be introduced as a first step with effect from 1 Sep 2012.

Increase in CPF older worker contribution rate Age
group Increase in
employer
contribution Increase in
employee
contribution Total increase
in contribution Allocation of increase
OA SA MA
50-55 2% 0.5% 2.5% 0.5% 1.5% 0.5%
55-60 1.5% 0.5% 2% 0.5% 1% 0.5%
60-65 0.5% - 0.5% - 0.5% -


• Enhancement to SEC

The Special Employment Credit (SEC) was introduced as a 2011 Budget Initiative to support employers as well as to raise the employability of older low-wage Singaporeans. It will be enhanced in 2012 to provide employers with continuing support to hire older Singaporean workers.

With the 2012 enhancements, about 73,000 employers employing 350,000 older Singaporeans are expected to benefit from the SEC. This will cost the Government about $470m per year over the next five years. Employers may qualify for the SEC for workers employed from 1 January 2012 onwards. Payments will be made twice a year, with the first payment of the enhanced SEC to be made in September 2012.


• One-off Medisave Top-up

To offset the expected increase in MediShield premiums in 2012, all Singapore Citizens insured under MediShield will receive a one-off Medisave top-up. Older Singaporeans will receive a larger top-up as they face higher premiums.

Age as at next birthday Medisave Top-up
1-40 $50
41-50 $100
51-60 $200
61-75 $300
76 and above $400


• Silver Housing Bonus and Enhanced Lease Buyback Scheme

MOF has announced the introduction of the Silver Housing Bonus and Enhanced Lease Buyback Scheme.

--

More details on the schemes will be released during the Committee of Supply Debate of Ministry of Manpower/ Ministry of Health/ Ministry of National Development in March 2012.

Visit the CPF website for the latest information on the CPF changes.


Yours faithfully
CPF Board

[leetahbar]

pay attention to MEDISAVE and other schemes that shall be conjured up. that's where our cpf would be zapped.

[leetahbar]

according to cpf, the minimum cpf saving all must maintain is $130K. for now, it's like ok. for another 10 yrs or more down the run, then what kind of holding back our money would be?

i still stand by the late toh chin chye's word: cpf is like a fixed deposit. when it's matured and due, the gov should return ALL our saving to us when we hit 55yo. not 60, 65 or 68 or never.

[laksaboy]

CPF is hidden taxation, money that is spirited away for Ho Ching's gambling sprees.

The CPF is not a pension nor is it similar to America's 401k, therefore it won't help you to retire.

Use CPF to buy a flat? Sure you can. And get saddled with debt lasting up to 20-30 years. What do you get in return? A tiny pigeon hole, grossly inflated value, and comes with a 99-year lease. Worth it?

[Cestbon]

Another U turn policy. After reduce old worker CPF now they to reduce back. Is a big mistake in 1st place when reduce the CPF. Increase for 55~65 age worker is not enough.

[leetahbar]

Another U turn policy. After reduce old worker CPF now they to reduce back. Is a big mistake in 1st place when reduce the CPF. Increase for 55~65 age worker is not enough.

probably they have schemed up a plan to get older workers back to work in cheapo kind of jobs such as sweepers, table cleaners and MAC's grossly underpaid staff or the likes. as the pool gets larger, obviously there's good money to be zapped. cpf would be one of the more efficient and leegal way and so an increase would be the best atm for the gov.

[leetahbar]

WORKFARE bonus payout is another best hypocrisy from the gov. they pay u the WF bonus for working and contributing something to cpf. happy, right? sounds like gov rewarding to unfairly paid workers. but then again, how terribly wrong!! the payout goes to MEDISAVE. and what is medisave? u can't draw out if u don't utilise it. gov actually penalise u for keeping yourself health so that u won't be admitted to hospital, won't be inflicted with serious chronic sickness and at the end of the day, won't even be using your medisave. but then again, that susbstantial money (our frozen savings) wouldn't be returned to it.