CNA Talking pt the vote [11Dec2012]: Is Your CPF enough?

Talking pt the vote [11Dec2012]: Is Your CPF enough?
[pict link if U cannot see]
Now on 'live': http://www.channelnewsasia.com/tp/ .
Singaporeans entering the workforce today will have enough savings in their Central Provident Fund (CPF), so says a Ministry of Manpower report. There are some conditions attached. We discuss those assumptions on the show. Is your CPF really enough for you to retire on?
Tell us what you think on Talking Point: The Vote, Tuesdays LIVE.
Post your comments here. Tweet us @tpvote. Call us LIVE at 66910028!

bic_cherry said:

Talking pt the vote [11Dec2012]: Is Your CPF enough?

Now on 'live'....

Click to expand...

If annual inflation= 10% (it was 5.2% in 2011), CPF OA interest 2.5%, each year, effective interest earned each year = -7.5%.
So $100k after 1 yr is now worth $92.5K; after 10 years is worth $45,858; after 20 years= $21,030; after 30 yrs= $9644.
Conclusion: CPF should provide EITHER an inflation protection scheme: inflation rate plus 0.5% (OA), inflation rate plus 2% (SA, MS), or the right to buy gold ETF/ savings accounts with 100% of OA and 50% of SA.

bic_cherry said:

Talking pt the vote [11Dec2012]: Is Your CPF enough?

Now on 'live'....

Click to expand...

Final result is as follows (poll just closed):
[pict link if U cannot see]
I.e. in words: 3.8% say CPF is enough,
BUT 96.2% say CPF is NOT enough.
Looking at the following inflation figures chart, I think that it is safe to say that inflation going forward should be in the 8% range, in fact, if SG govt follows the Zimbabwe example of issuing the ultimate (100trillion dollar note- pict@bottom), it wouldn't need much intelligence to know that hyperinflation has taken hold... good luck then folks!


[pict source (Singstat, CPI 1980-2011)]

[pict source($100Trillion Zim dollar)]
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CNA TP final result (poll ended):