CPF will soon allow private pension plans!

MaxRiley · Jul 23, 2014

"For CPF members who can stomach higher risks, the Deputy Prime Minister agreed that options that may enable higher returns should be studied, but stressed the importance of understanding the risks involved in options like private pension plans."

Newer flexibility to allow us to invest in private pension plans to give higher returns. Will you be keen?

http://www.channelnewsasia.com/news/singapore/cpf-system-will-evolve-to/1277236.html

Poomer · Jul 23, 2014

Joker, after socialising the cost and privatising the profits for the past decade, they decide to offer us higher returns with higher risks (sounds like a ponzi scheme to me). Why don't they give us back our money and let us decide on our risk appetite.

Yingge · Jul 23, 2014

The problem with Singaporean, when ask them to use their CPF to take higher risk... More than 95% of the people will not invest...

Currently CPF money can buy shares listed in SGX. If they really can take those risk, their money should be already in the share market a few years back... They are currently making a lot of money...

Singaporean here just hope that the government can give extra 1% to 2% and is risk free... :rolleyes:

Poomer · Jul 23, 2014

Yingge said:
The problem with Singaporean, when ask them to use their CPF to take higher risk... More than 95% of the people will not invest...

Currently CPF money can buy shares listed in SGX. If they really can take those risk, their money should be already in the share market a few years back... They are currently making a lot of money...

Singaporean here just hope that the government can give extra 1% to 2% and is risk free...

The problem with Singapore govt, when ask to return our CPF... Will 100% not return the money and come out with some cock and bull story and full page colour editorials to support their bullshit.

Just remember, money in your CPF statement is like watching porn, can see but cannot touch. The house you buy with it also overpriced so that they can drain your CPF money...

frenchbriefs · Jul 23, 2014

the problem is Singaporean CPF is already being used to take higher risk....remember GIC is using CPF funds to invest,that means the are taking the risk with our money and keeping the profits and giving us the bones and scraps(2.5%).

imagine ur CPF has 80,000 dollars...the difference of 1% interest can mean $800....GIC is stealing 3 to 4% of ur interest....they are stealing $2400 to $3200 from u every year......multiply this by ten years is $24,000 to $32,000.....if u add on the compounding effect.....they are stealing close to $33,519 to $44,618 from u every 10 years.

Yingge said:
The problem with Singaporean, when ask them to use their CPF to take higher risk... More than 95% of the people will not invest...

Currently CPF money can buy shares listed in SGX. If they really can take those risk, their money should be already in the share market a few years back... They are currently making a lot of money...

Singaporean here just hope that the government can give extra 1% to 2% and is risk free...

laksaboy · Jul 23, 2014

frenchbriefs said:
the problem is Singaporean CPF is already being used to take higher risk....remember GIC is using CPF funds to invest,that means the are taking the risk with our money and keeping the profits and giving us the bones and scraps(2.5%).

More risk? Haven't Sinkies been subjected to enough risk already? :rolleyes:

winnipegjets · Jul 23, 2014

Yingge said:
The problem with Singaporean, when ask them to use their CPF to take higher risk... More than 95% of the people will not invest...

Currently CPF money can buy shares listed in SGX. If they really can take those risk, their money should be already in the share market a few years back... They are currently making a lot of money...

Singaporean here just hope that the government can give extra 1% to 2% and is risk free...

The current investment option is limited. Why would anyone want to invest in SGX counters?

winnipegjets · Jul 23, 2014

Just give sinkees simple options - get the miserly CPF interest or to invest in a S&P etf from Blackrock or Vanguard.

winnipegjets · Jul 23, 2014

frenchbriefs said:
the problem is Singaporean CPF is already being used to take higher risk....remember GIC is using CPF funds to invest,that means the are taking the risk with our money and keeping the profits and giving us the bones and scraps(2.5%).

imagine ur CPF has 80,000 dollars...the difference of 1% interest can mean $800....GIC is stealing 3 to 4% of ur interest....they are stealing $2400 to $3200 from u every year......multiply this by ten years is $24,000 to $32,000.....if u add on the compounding effect.....they are stealing close to $33,519 to $44,618 from u every 10 years.

Here's the math I did.

$10k per year in CPF for 30 years gives you $450k
$10k per year in a S&P ETF for 30 years gives you $1.3 million
Difference is $850k.
Principal amount is $300k.

SgGoneWrong · Jul 23, 2014

U guys have to thank Roy for attracting so much attention to cpf issue that pappies can't lie their way through and are pressured to give some form of reforms.

winnipegjets · Jul 23, 2014

Looks like Temasek is going to start a private pension plan and sinkees will either have to invest in this Temasek plan or the CPF.

Why not a S&P run by Blackrock or Vanguard?

ginfreely · Jul 24, 2014

winnipegjets said:
Looks like Temasek is going to start a private pension plan and sinkees will either have to invest in this Temasek plan or the CPF.

Why not a S&P run by Blackrock or Vanguard?

Last time I heard from my company Australia workers they can even set up trust fund in their own name for their superannuation I.e cpf funds. So for example if a worker name is James bond and his superannuation will be contributed to a fund set up in his name James bond fund. So he manage the fund himself.

winnipegjets · Jul 24, 2014

ginfreely said:
Last time I heard from my company Australia workers they can even set up trust fund in their own name for their superannuation I.e cpf funds. So for example if a worker name is James bond and his superannuation will be contributed to a fund set up in his name James bond fund. So he manage the fund himself.

That's a retirement account like the IRA in US and RRSP in Canada. Those are additional money people put away for retirement on top of their contribution to pensions.

The best way to help sinkees to retire with adequate finances is to establish a pension fund. Americans contribute 6 percent, while Canadians contribute 5 percent of their salary to enjoy a sustainable pension payment of $1k a month.
Sinkees contribute 23 percent of their salary to get what?

Sammy · Jul 24, 2014

just fucking return our money at 55 and stop giving excuses....

johnny333 · Jul 24, 2014

Yingge said:
The problem with Singaporean, when ask them to use their CPF to take higher risk... More than 95% of the people will not invest...

Currently CPF money can buy shares listed in SGX. If they really can take those risk, their money should be already in the share market a few years back... They are currently making a lot of money...

Singaporean here just hope that the government can give extra 1% to 2% and is risk free...

PAP talking about "risks" is a joke.

I have plenty of $$$$ of my CPF stuck in approved unit trusts & they have lost their value. The reason I've left them in there is because I can't take it out anyway.

Yingge · Jul 24, 2014

johnny333 said:
PAP talking about "risks" is a joke.

I have plenty of $$$$ of my CPF stuck in approved unit trusts & they have lost their value. The reason I've left them in there is because I can't take it out anyway.

You see... PAP is right... When compare with return, all of you will compare with those which make successful investment...

Ask you to invest yourself... All kana stuck... There is a lot of government approved unit trusts that make money... It is also depend on when you invest...

Lose or stuck on your investment... You blame the government... :rolleyes:

Runifyouhaveto · Jul 24, 2014

If i may quote the following from the article:-
The main challenge will be for private pension plans to offer a realistic chance of achieving better returns than the four to five per cent on the CPF Special Account, he said.

CPF-OA account holders can invest in higher risk products such as equities, unit trusts and precious metals. Safer options will be like the CPF-SA approved unit trusts with a greater portion of their investments in fixed income instruments (lower risk but trying to outperform the CPF-SA 4%).

In other countries, private pensions can even invest in companies. Eg. Mr Rich can use private pension to inject capital to his family business. Yes, the possibilities of private pensions are endless
http://en.wikipedia.org/wiki/Superannuation_in_Australia

but but but.........if we give 4-5% on all CPF-accounts; OA, SA, Medisave, then the cumulative returns of CPF accounts are splendid; there will be no need to offer private-pension options. Of course, HDB loans (2.6%) will have to unpeg from CPF-OA's 2.5% interests.

rushifa666 · Jul 25, 2014

They will never allow you to invest in anything that they cannot use paper money for. So it's pointless

winnipegjets · Jul 25, 2014

Runifyouhaveto said:
If i may quote the following from the article:-
The main challenge will be for private pension plans to offer a realistic chance of achieving better returns than the four to five per cent on the CPF Special Account, he said.

CPF-OA account holders can invest in higher risk products such as equities, unit trusts and precious metals. Safer options will be like the CPF-SA approved unit trusts with a greater portion of their investments in fixed income instruments (lower risk but trying to outperform the CPF-SA 4%).

In other countries, private pensions can even invest in companies. Eg. Mr Rich can use private pension to inject capital to his family business. Yes, the possibilities of private pensions are endless
http://en.wikipedia.org/wiki/Superannuation_in_Australia

but but but.........if we give 4-5% on all CPF-accounts; OA, SA, Medisave, then the cumulative returns of CPF accounts are splendid; there will be no need to offer private-pension options. Of course, HDB loans (2.6%) will have to unpeg from CPF-OA's 2.5% interests.

The average long term return is 7 percent with little risk. For an investment horizon of 30 years, this is achievable.
The PAP government has short-changed sinkees for decades.

CPF returns has nothing to do with the interest rate charge to HDB loans. One is for retirement and the other is for 'subsidized' housing. The attempt to link the two is just the PAP's way of conning sinkees.

ginfreely · Jul 25, 2014

winnipegjets said:
That's a retirement account like the IRA in US and RRSP in Canada. Those are additional money people put away for retirement on top of their contribution to pensions.

The best way to help sinkees to retire with adequate finances is to establish a pension fund. Americans contribute 6 percent, while Canadians contribute 5 percent of their salary to enjoy a sustainable pension payment of $1k a month.
Sinkees contribute 23 percent of their salary to get what?

Oic they only contributed to that fund in their own name and nothing else. But then they are quite elderly so might have passed retirement age and that is their retirement account indeed.

Yeah why people 5 or 6 percent can get so much. I recall Australia only 10 percent or so, not that much too. And they are really worry free in medical expenses, that time got one Australian staff who contracted skin cancer and he was not worried at all, said many people got skin cancer there.

CPF will soon allow private pension plans!

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