Budget 2014

[Leongsam]

By the same logic human should be responsible for their own finances. And If they fail they must face the consequences. Right now we cannot even get back our own money. Cpf is contributed by employer. And employees. Government should do the right thing that is return them at 55

If it was returned, the majority would blow it all in a short time for the same reason that most people only have their CPF savings and nothing else upon retirement. They have not saved a cent in their 4 decades of working life.

In this regard, I agree with the government. CPF has to be drip fed or society will be worse off.

50% of the population have below average intelligence so I have qualms about assuming that very few would actually know how to manage their CPF savings to make the amount last 2 or more decades.

 

[TracyTan866]

Significant enough if pap didn't break it up into oa ma sa, retirement account etc.

I agree with you.

Let's work on the below assumptions for a gal:

1. Starts work at 25
2. Starting pay $3k
3. Annual increment of $500 per year
4. Annual salary - 12months+ 0.5months for midyear + 1mth for year end +1.5mth performance bonus = 15moths total
5. CPF contribution rate (employee - 20%, employer 17%) - total 37%
6. CPF imterest rate - 2.5% per year

25yrs old - 0.37x$3kx15mthsx1.025 = $17,066
26yrs old - ($17,066+(.37x$3500x15mths))x1.025=$37403
27yrs - ($37403+(.37x$4kx15mths))x1.025= $61093
28yrs - ($61093+(.37x$4.5kx15mths))x1.025=$88219
29yrs - ($88219+(.37x$5kx15mths))x1.025 = $118869
she wld have achieved max CPF of $1800 per mth by this time
30yrs - ($118869+($1800x15mths))x1.025= $146544
31yrs - ($146544+($1800x15mths))x1.025=$177882
32yrs - ($177882+($1800x!5mths))x1.025=$210004
33yrs - ($210004+($1800x15))x1.025=$242929
33yrs - ($242929+($1800x15))x1.025=$276678
34yrs - ($276678+(1800x15))x1.025=$311269
35yrs - ($311269+(1800x15))x1.025=$346726
36yrs - ($346726+(1800x15))x1.025=$383069
37yrs - ($383069+(1800x115))x1.025=$402321
38yrs - ($402321+$27K)x1.025=$440054
39yrs - ($440054+$27k)x1.025=$$478730
40yrs - ($478730+$27k)x1.025 =$506405
41yrs - ($506405+$27k)x1.025= $546740

etc

based on the above, she will conservatively have $1.3million in her CPF account when she reaches 55years old

 

[TracyTan866]

I don't know you from Adam. You're just a nick here and I don't have a clue who you are in real life so I fail to understand what can be so personal about stating a number.

I had about $380,000 in my CPF when I retired.

what has CPF balance got ot do with the discussion?

you are arguing out of context and all over the place.

but just to satisfy you, go to my Post#102

 

[fedup]

If it was returned, the majority would blow it all in a short time for the same reason that most people only have their CPF savings and nothing else upon retirement. They have not saved a cent in their 4 decades of working life.

In this regard, I agree with the government. CPF has to be drip fed or society will be worse off.

50% of the population have below average intelligence so I have qualms about assuming that very few would actually know how to manage their CPF savings to make the amount last 2 or more decades.

I would put the below average intelligence level at 60.1% instead of 50.

 

[TracyTan866]

If it was returned, the majority would blow it all in a short time for the same reason that most people only have their CPF savings and nothing else upon retirement. They have not saved a cent in their 4 decades of working life.

In this regard, I agree with the government. CPF has to be drip fed or society will be worse off.

50% of the population have below average intelligence so I have qualms about assuming that very few would actually know how to manage their CPF savings to make the amount last 2 or more decades.

another of your wild statements without substance.

i disagree with you.

many of my friends are good managers of their funds and are easily getting more than 10% returns.

 

[TracyTan866]

I would put the below average intelligence level at 60.1% instead of 50.

agree...they read straits times and endorsed media

 

[Leongsam]

based on the above, she will conservatively have $1.3million in her CPF account when she reaches 55years old

The hidden enemy is inflation.

$1.3 million today will equivalent to only $400,000 in 30 years time assuming 4% inflation.

CPF money has to be used for housing in order to fight the inevitable. This means that your retirement nest egg has to come from somewhere else.

 

[Leongsam]

another of your wild statements without substance.

i disagree with you.

many of my friends are good managers of their funds and are easily getting more than 10% returns.

Singapore sounds like a great place. Your friends are doing well. My friends in Singapore are also doing very well and so too are their children.

 

[TracyTan866]

The hidden enemy is inflation.

$1.3 million today will equivalent to only $400,000 in 30 years time assuming 4% inflation.

CPF money has to be used for housing in order to fight the inevitable. This means that your retirement nest egg has to come from somewhere else.

that's why the pap is wrong to pay CPF interest rate at 2.5% when inflation rate is 5%.

 

[bushtucker]

tracytan, your calculation is based on best case scenario that the person never touches his/her CPF. almost all sinkies will use CPF for property purchase of some sort, or investments.

 

[TracyTan866]

Singapore sounds like a great place. Your friends are doing well. My friends in Singapore are also doing very well and so too are their children.

we are doing well... because we dont trust the pap and decided to go against the pap.

if we believe the pap we will be like the 51%. we wld not have taken charge of our own lives

 

[TracyTan866]

tracytan, your calculation is based on best case scenario that the person never touches his/her CPF. almost all sinkies will use CPF for property purchase of some sort, or investments.

it is calculated on basic CPF contributions and CPF interest rate. It is not the best nor the worst case

 

[TracyTan866]

Singapore sounds like a great place. Your friends are doing well. My friends in Singapore are also doing very well and so too are their children.

SG is great if you dont believe what the pap says nor trust the pap

 

[ykhuser]

what do commoners like us get, any angbao for us this year?

yup.1 fish burger with coke.

 

[TracyTan866]

yup.1 fish burger with coke.

are you happy with what you got?

i think Budget 2014 sucks and many pioneer generation felt let down after the big hooha by LHL and raised expectations

 

[Leongsam]

SG is great if you dont believe what the pap says nor trust the pap

That's exactly what I'm advocating and it's what I've been saying all along. Forget about the PAP. Live life according to your own rules.

However, I extend this to ALL governments not just the PAP for reasons that I have mentioned over and over again for many years.

 

[TracyTan866]

Singapore sounds like a great place. Your friends are doing well. My friends in Singapore are also doing very well and so too are their children.

You probably dont know me well...but I have stated many times that I am doing great and am enjoying life...all because I can see the evils of the pap and know how not to fall into their schemes.

 

[ykhuser]

I agree with you.

Let's work on the below assumptions for a gal:


2. Starting pay $3k
3. Annual increment of $500 per year
4. Annual salary - 12months+ 0.5months for midyear + 1mth for year end +1.5mth performance bonus = 15moths total

you believed Singaporean entitled to the above 3?
more realistic would be like these for singaporean
Starting pay $1.5k
3. Annual increment of $50-$100 per year
4. Annual salary - 12months+ 0months for midyear + 1mth aws + 0 mth performance bonus = 13moths total

if you dont believed ask around the locals

 

[TracyTan866]

That's exactly what I'm advocating and it's what I've been saying all along. Forget about the PAP. Live life according to your own rules.

However, I extend this to ALL governments not just the PAP for reasons that I have mentioned over and over again for many years.

i can see through your double talk.

that's why I called you Samy

 

[TracyTan866]

you believed Singaporean entitled to the above 3?
more realistic would be like these for singaporean
Starting pay $1.5k
3. Annual increment of $50-$100 per year
4. Annual salary - 12months+ 0months for midyear + 1mth aws + 0 mth performance bonus = 13moths total

if you dont believed ask around the locals

i am a local gal