51% of Singaporeans cannot meet minimum sum

[theDoors]

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1099803/1/.html

Another issue for the government involves the CPF minimum sum requirement, where S$123,000 must be set aside for retirement.

In 2009, only 49 per cent of workers were able to meet the requirement upon reaching 55 years old.

This raises concerns over the ability of the elderly to depend on themselves in retirement, and the potential need for more support from the government.

Prof Yeung said: "Older people rely a lot on their children to support them. And now a large proportion of people don't even get married or have children. So that means they are going to need to accumulate enough on their own, or the government will have to increase their support to the elderly population."

The report looked at six broad areas, including sustainable economic growth and building a cohesive society.

There are plans to publish the report every two years.

- CNA/al

 

[Boliao]

It is scary to see such post. What it means is that THEY are thinking of ways to ensure that WE will meet the minimum sum required.

 

[theDoors]

Instead of restoring the contribution cuts from 34.5% to 40%, and raising the contribition cap from $4500 back to $6000, they will ask you to retire at 68.

 

[mako65]

Govt will help but must wait.....gotta wait quite awhile though! Hahaha

 

[cathylmg]

If I'm not wrong, this amount is including the value of your house. Which hdb doesn't cost more then $123k? So no worry lah. Almost everyone can reach. Its only the FTs that has to worry because once they feel that they have earned enough, they wanna cash out everything and leave. Thats when the problem comes.

 

[wizard]

If I'm not wrong, this amount is including the value of your house. Which hdb doesn't cost more then $123k? So no worry lah. Almost everyone can reach. Its only the FTs that has to worry because once they feel that they have earned enough, they wanna cash out everything and leave. Thats when the problem comes.

Yes, someone did told me if your flat is fully paid for then certain percentage of your house value can be consider as the min..

but what the hack.. they can change the rule any time ...any way they want to their advantage..

 

[garlic]

the grounds have been laid for something... expect some more changes..

 

[loloba]

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1099803/1/.html

Another issue for the government involves the CPF minimum sum requirement, where S$123,000 must be set aside for retirement.

In 2009, only 49 per cent of workers were able to meet the requirement upon reaching 55 years old.

This raises concerns over the ability of the elderly to depend on themselves in retirement, and the potential need for more support from the government.

Prof Yeung said: "Older people rely a lot on their children to support them. And now a large proportion of people don't even get married or have children. So that means they are going to need to accumulate enough on their own, or the government will have to increase their support to the elderly population."

The report looked at six broad areas, including sustainable economic growth and building a cohesive society.

There are plans to publish the report every two years.

- CNA/al

We are talking about people who are 55 now keeping $123K for another 10 years. The govt is worried for these group of people?
We have a good proportion of the present population who do no have CPF in their account, and I don't see how the govt is supporting them.
2009 - 49% this is the 1st generation of older workers who managed to pay off their housing loan within 10-15 years and they have another 10-15 years to save.

Pity the next generation of citizens, they have nothing left in the CPF with a mortage loan of 30 years.

 

[KuanTi01]

I'm one of the 51% and so be it!

 

[Glaringly]

If I'm not wrong, this amount is including the value of your house. Which hdb doesn't cost more then $123k?

If what you said is the case, then it is even more worrying, since 51% does not meet the requirement, even with Hdb thrown in?

 

[cathylmg]

If what you said is the case, then it is even more worrying, since 51% does not meet the requirement, even with Hdb thrown in?

Don't understand why you say even with hdb thrown in also not enough. Look at how much hdb cost today? The amount is on resale value. Which hdb doesn't cost more then $123k? What are you talking about? I think those that complaining all day and nights are the FTs who are ever so mobile and scheming to leave with the chunk of profits from the sale of their hdb. Too bad, its going to be locked up in cpf. Better do the calculations first before coming to sinkieland.

 

[Glaringly]

It means the figures has already included the value of HDBs. Therefore it seems these 51% are so broke that they do not even own any HDB.

Don't understand why you say even with hdb thrown in also not enough. Look at how much hdb cost today? The amount is on resale value. Which hdb doesn't cost more then $123k? What are you talking about? I think those that complaining all day and nights are the FTs who are ever so mobile and scheming to leave with the chunk of profits from the sale of their hdb. Too bad, its going to be locked up in cpf. Better do the calculations first before coming to sinkieland.

 

[cathylmg]

It means the figures has already included the value of HDBs. Therefore it seems these 51% are so broke that they do not even own any HDB.

Don't think so lah. Unless the 51% includes aunties and grannies who had not been in employment ever since their child bearing days. For this case will be very very true lah. 49% working males can afford. 51% aunties and grannies cannot afford. Anyway for this category they keep topping up their medisave and give them incentives.

 

[loloba]

I'm one of the 51% and so be it!

when you reach 55 without the 123K the govt will assume that you owe your retirement account $123K. In he event you sell you house at 60 the govt will deduct 123K plus interest at the percentage you would earn if you have the 123K meaning to say the govt will deduct from the proceed of the sale of your property 123K plus interest from your 55th birthday to the day you sold your property.

This is the scenario. You worked your life from 25 years plus 30 years loan repayment for your HDB = 55 at the end of 55 you have to produce 123K to let the govt invest for you for the next 10 years because you can only withdraw at 65.

They are worried for the 51% who do not have the 123K for them to invest for the next 10 years.

 

[cathylmg]

when you reach 55 without the 123K the govt will assume that you owe your retirement account $123K. In he event you sell you house at 60 the govt will deduct 123K plus interest at the percentage you would earn if you have the 123K meaning to say the govt will deduct from the proceed of the sale of your property 123K plus interest from your 55th birthday to the day you sold your property.

This is the scenario. You worked your life from 25 years plus 30 years loan repayment for your HDB = 55 at the end of 55 you have to produce 123K to let the govt invest for you for the next 10 years because you can only withdraw at 65.

They are worried for the 51% who do not have the 123K for them to invest for the next 10 years.

Don't understand why must sell house lor. Sell house then live where?Majority of sinkie invested heavily into insurance products at a very young age. Savings all in insurance form. Some taking 2 to 3 policies at a single time frame. Some of them even start a policy for their children to be inherited once they turn 21 of age. These they can use as retirement fund wor....Anyway after 65 they will return to you monthly, so why worry wor?

Unless, it goes back to the problem of the FTs, who just want to sapu everything and leave for good lah....

 

[loloba]

Don't understand why must sell house lor. Sell house then live where?Majority of sinkie invested heavily into insurance products at a very young age. Savings all in insurance form. Some taking 2 to 3 policies at a single time frame. Some of them even start a policy for their children to be inherited once they turn 21 of age. These they can use as retirement fund wor....Anyway after 65 they will return to you monthly, so why worry wor?

Unless, it goes back to the problem of the FTs, who just want to sapu everything and leave for good lah....

sometimes is not that you want to sell, the govt got one scheme called the lease buy back. The govt buy back your property and sell you the balance 30 year lease.

Insurance. - Is a form of saving at the end of the day you get back what you saved nothing more, nothing less. Unless you kick the bucket, your next of kin benefit otherwise is not a wise move to invest in insurance.

 

[besotted]

hope singaporeans have more backbone and stop blaming FTs for the problems

without FTs who will do the construction, marine, retail, F&B jobs?

 

[cathylmg]

sometimes is not that you want to sell, the govt got one scheme called the lease buy back. The govt buy back your property and sell you the balance 30 year lease.

Insurance. - Is a form of saving at the end of the day you get back what you saved nothing more, nothing less. Unless you kick the bucket, your next of kin benefit otherwise is not a wise move to invest in insurance.

!.I had relatives who hdb kenna govt bought back. 3 rm changed to 4 rm flat. Plus mrt besides. Previous ones no mrt. Stayed for 30+years, now left 60+ years. Worth it or not? You tell me?

2. In Aussieland, you pay 30% to 49% tax and if you give up your aussie passport, kenna get nothing liao. Also if you migrate you and your children are considered 1st generation. Not qualify for anything. Not even educational, medical or old age payout. You have to buy your own medical insurance which is daylight robbery price. So even if your earnings are very high, take home pay will still be very low. Not to mention the exorbitant tax you had to pay for life. Same for US and Europe. Also petrol tax very high. If you ask me why I know all this, I once considered migration cos the moon on the other side is always brighter. When you calculate and consider everything, you'll know. Goes back to square one. Even worst for some. Now I feel how lucky am I to have a choice of managing my own savings.

3.Savings comes from various sources. Insurance is one of them. Properties, shares, even vintage wine, old antiques can be considered investments. Everyone gotta save for old age mah. Its one way or another. Nobody is interested to take care of another's welfare until you step into the coffin. Not you, not me, not the garment, not even our very own next generation. So wake up man, starts to save now!

 

[drifter]

hope singaporeans have more backbone and stop blaming FTs for the problems

without FTs who will do the construction, marine, retail, F&B jobs?

its true ..even your mother coffin also made by FT ...

 

[cathylmg]

hope singaporeans have more backbone and stop blaming FTs for the problems

without FTs who will do the construction, marine, retail, F&B jobs?

Yeah yeah...we need them. No doubt about it. Let them come, we welcome them. Just make sure they don't leave with all the cakes that we generously shared with them.