Country May Have A “Liquidity Problem” If Everyone Were To Withdraw Their CPF

[kaipoh]

KNNBCCB, all bunch of morons, it is like a MLM game, it will has many down lines to support this batch of 55yo withdrawal plus the country reserved is more than comfortable to fan off the liquidity problem. It would be a disaster if our cpf money keep with the pap govt. imagine if pap voted out?

Source: The Independent

Student asks the “what if” CPF question
June 24th, 2014 | by Tan Yong Heng Jack

When things get emotional, one good question to keep in mind is this: What if…

The on-going CPF debate needs that question to be asked and the answer can be illuminating.

A university student stood up at a forum on CPF, organised by the Singapore People’s Party on Saturday, to ask: what would happen if everyone were to withdraw their CPF savings upon turning 55?

Leong Sze Hian, panel member and statistician, said that the country would run into a “liquidity problem”.

“We have about $260 billion in the CPF today. If suddenly everyone above the age of 55 decides to withdraw, then you may have a liquidity problem, because you got to squeeze out a few hundred billion dollars overnight,” he said.

“It would be a disaster for a policy change that is a knee-jerk reaction, where everybody withdraws everything, all at one go,” he added.

Party chairman Lina Chiam agreed.

Leong proposed an alternative where the minimum sum is gradually reduced and where “different cohorts can withdraw at different times”.

Lina Chiam stated her party’s stand on the issue. She said CPF account holders should have the choice and flexibility to withdraw their savings or to opt in to the annuity scheme.

Assistant Secretary-General Loke Hoe Yeong responded by reaffirming the party’s stand that the CPF money belongs to its citizens.

He said: “This is…your money. It’s not mixed with tax from younger people, unlike pension schemes in other countries. So if you withdraw it, it’s still your money,”

He also commented that citizens should have the freedom to withdraw their funds for private investment, to pay for healthcare or to support their children’s education.

“Should we not have a right to decide how we use our retirement funds?” he asked the 40-strong crowd at the forum.

One man, who preferred to remain anonymous, said that it is “irresponsible” to assume that seniors would squander their CPF money on leisurely pursuits the moment they get their hands on their retirement funds. One example of the leisurely pursuits cited was Batam – a tourist destination in neighbouring Indonesia that has become more of a euphemism for indulgences in the pleasures of the flesh.

Leong said that anecdotal evidence of a few who have frivolously wiped out their savings in Batam does not justify the withholding of the CPF for all middle-aged Singaporean men.

He said: “How many people really go to Batam to spend all their money? You didn’t tell me.”

There was an incessant murmur on the ground – even as the panel addressed them – a lingering air of discontentment, although it was placated by Leong’s sense of humour from time to time.

The murmur died down when Secretary-General Chiam See Tong was invited to make his concluding remarks.

He said: “Credibility is important. I know there are many Singaporeans who don’t believe what the government says. So how are you going to trust the government with the CPF issue? Or any other issue?”

“So what’s the solution? Throw out the government.”

 

[Dragonhead]

You may have no faith but the majority of Singaporeans have complete faith in the PAP so your lack of faith is of no consequence.

I have complete faith in the CPF and I trust the PAP 100%.

You have already cleared out your CPF money and now a PR in NZ sleeping with the sheep. Whether you have faith or no faith in papo is irrelevant. Those sinkies still have their money in CPF are affected. How to have faith in papo when you cannot withdraw your money at 55 as promised?

 

[Dragonhead]

Hey don't pick on me. I hate the PAP as much as the next guy.

No, leh. You sing praises for the papo like you sing in the bathroom.

 

[Dragonhead]

Yes, faith can move mountains but cannot be blind.

We are in this state now because of the blind faith the 60% have in this government.

Not blind faith alone but also swallowing hook, line and sinker until suddenly, all now kena stung to open eyes big big after that guy Roy spoke up with his slogan.

 

[Leongsam]

No, leh. You sing praises for the papo like you sing in the bathroom.

Just because I admire their policies does not mean I love the PAP.

 

[xingguy]

KNNBCCB, all bunch of morons, it is like a MLM game, it will has many down lines to support this batch of 55yo withdrawal plus the country reserved is more than comfortable to fan off the liquidity problem. It would be a disaster if our cpf money keep with the pap govt. imagine if pap voted out?

KNNBCCB, what kind of moronic comment is that

It should be it would be a disaster if our CPF money keep with PAP govt, it would only get better if PAP is voted out.
Anything less, you would be forced to contribute for the rest of your life with ever increasing minimum sum and withdrawal age.
Who knows what other vile scheme this ponzi scheme can branch out to.