CPF Minimum Sum up 184% in 13 years

[makapaaa]

[h=2]CPF Minimum Sum up 184% in 13 years[/h]

May 23rd, 2014 |

Author: Contributions

We refer to the article “Singapore Parliament reopens: CPF schemes for retirement to be improved, says President Tony Tan” (Straits Times, May 17).
CPF schemes to be improved?
It states that “Among the Government’s goals in its second term is to ensure that Singaporeans are adequately prepared for retirement, with enough savings to tide them through their golden years. The CPF schemes are meant to be a way to build up retirement funds.”
ES alerted us to page 19 of the 2001 CPF Annual Report.
Higher proportion of members meeting the minimum sum?
It states that “In 2001, 36,816 members were brought into the Minimum Sum Scheme.
Of these, 5,827 bought annuities, 13,373 pledged their properties and 14,433 left their Minimum Sum either with the banks or the Board.
The remaining 3,183 consisted of members who had no Minimum Sum to set aside as they had small balances, and those who were exempted from the scheme because they were terminally ill, had passed away, had their own annuities, had left the country permanently or were pensioners in receipt of a monthly pension.”
As we understand and estimate that each age 55 cohort is about 40,000 – it would appear that most of the cohort who turned 55 were in the Minimum Sum Scheme.
Now only 1 in 8 can meet entirely in cash?
Now, fast forward to today – and we estimate that only about 1 in 8 who turn 55 will be able to meet the combined total of $198,500 for the CPF and Medisave Minimum Sums.
Why is it that apparently lesser Singaporeans seem to be able to meet the minimum sums?
184% increase in 13 years?
Of course, the Minimum Sum was only $70,000 in July 2001 (not sure if there was a Medisave Minimum Sum then or the amount).
It has increased by 184% in 13 years to a combined total of $198,500 now, or 8.4% per annum.

SY Lee and Leong Sze Hian

 

[SirRichard]

Can someone please enlighten how minimum sum scheme works?


1) if someone meet the sum and exceeds by 10k, how much can he withdraw, for how long? What happen if he dies after collecting only 2 years ? What happen to the balance?
2) If someone reaches the retirement age but there's not enough to meet minimum sum , for example only have 50k in it , when can he use the money then ?

 

[KhunPaen]

Can someone please enlighten how minimum sum scheme works?


1) if someone meet the sum and exceeds by 10k, how much can he withdraw, for how long? What happen if he dies after collecting only 2 years ? What happen to the balance?
2) If someone reaches the retirement age but there's not enough to meet minimum sum , for example only have 50k in it , when can he use the money then ?

It's over, we are screwed, no need to think too hard.....

 

[Sinkie]

My thread here tells you there is 7 years where you're on your own after age 55 till 62 whereby if you've insufficient funds to meet the minimum sum, you're left to fend for yourself for 7 long years, since you withdraw NOTHING at age 55.....

Here: http://singsupplies.com/showthread.php?181839-Request-to-OPP-for-my-vote

Do something, OPP..........this is fucking serious. Dun just keep your cheebye mouths shut and leave it to Roy.......

 

[laksaboy]

This CPF thing is going to explode. Beware the wrath of a generation of baby boomers.

No amount of 'Pioneer Packaging' will sugarcoat the rip-off that is the CPF.

 

[sochi2014]

Faster than Singaporeans wage growth!! Shocking indeed!!!

 

[eErotica69]

Why are they going to stop increasing the Minimum Sum?

 

[Stompiss]

Why are they going to stop increasing the Minimum Sum?

You mean when are they?

 

[winnipegjets]

[h=2]CPF Minimum Sum up 184% in 13 years[/h]

May 23rd, 2014 |

Author: Contributions

We refer to the article “Singapore Parliament reopens: CPF schemes for retirement to be improved, says President Tony Tan” (Straits Times, May 17).
CPF schemes to be improved?
It states that “Among the Government’s goals in its second term is to ensure that Singaporeans are adequately prepared for retirement, with enough savings to tide them through their golden years. The CPF schemes are meant to be a way to build up retirement funds.”
ES alerted us to page 19 of the 2001 CPF Annual Report.
Higher proportion of members meeting the minimum sum?
It states that “In 2001, 36,816 members were brought into the Minimum Sum Scheme.
Of these, 5,827 bought annuities, 13,373 pledged their properties and 14,433 left their Minimum Sum either with the banks or the Board.
The remaining 3,183 consisted of members who had no Minimum Sum to set aside as they had small balances, and those who were exempted from the scheme because they were terminally ill, had passed away, had their own annuities, had left the country permanently or were pensioners in receipt of a monthly pension.”
As we understand and estimate that each age 55 cohort is about 40,000 – it would appear that most of the cohort who turned 55 were in the Minimum Sum Scheme.
Now only 1 in 8 can meet entirely in cash?
Now, fast forward to today – and we estimate that only about 1 in 8 who turn 55 will be able to meet the combined total of $198,500 for the CPF and Medisave Minimum Sums.
Why is it that apparently lesser Singaporeans seem to be able to meet the minimum sums?
184% increase in 13 years?
Of course, the Minimum Sum was only $70,000 in July 2001 (not sure if there was a Medisave Minimum Sum then or the amount).
It has increased by 184% in 13 years to a combined total of $198,500 now, or 8.4% per annum.

SY Lee and Leong Sze Hian

Canadian Pension Plan charges contributors 2.5 percent of income to give back 30 percent of salary, index to inflation, from age 60.
CPF takes 25 percent from you and gives you a negative real return.

 

[Cestbon]

CPF is using Sinkie money with negetive return.
Base on inflation average 5%.
And CPF minimun sum every year increase 5% base on inflation.
CPF only give interest rate 2.5% >>> forever will never meet minimun sum. If the person not working after age 55. Because minimun sum increase 5% and CPF give interest rate 2.5% .

This is really a bullshit try to con people.

 

[JHolmesJr]

What the fuck does this say about inflation?

 

[Seee3]

CPF is using Sinkie money with negetive return.
Base on inflation average 5%.
And CPF minimun sum every year increase 5% base on inflation.
CPF only give interest rate 2.5% >>> forever will never meet minimun sum. If the person not working after age 55. Because minimun sum increase 5% and CPF give interest rate 2.5% .

This is really a bullshit try to con people.

My math is rusty. I may be wrong. For the minimum sum to increase by 184% in 13 years, it is equivalent to a 54.5% increase per year, compounded over 13 years. Wow, who is the economist who can justify an increase of 54.5% per year, compounded.

Allow me to find an excuse for them. The min sum at the start is too low. True or false?

Something is really screwed somewhere.

 

[OverTheCounter]

My math is rusty. I may be wrong. For the minimum sum to increase by 184% in 13 years, it is equivalent to a 54.5% increase per year, compounded over 13 years. Wow, who is the economist who can justify an increase of 54.5% per year, compounded.

Allow me to find an excuse for them. The min sum at the start is too low. True or false?

Something is really screwed somewhere.

Wa lao eh. Your math damn jiat lak.

184% increase over 13 years:

(1+r)^13 = 1+1.84 = 2.84
1+r = 1.0836
r= 0.0836

Effective interest rate = 8.36% per annum lah! Wa lao.

 

[Seee3]

Wa lao eh. Your math damn jiat lak.

184% increase over 13 years:

(1+r)^13 = 1+1.84 = 2.84
1+r = 1.0836
r= 0.0836

Effective interest rate = 8.36% per annum lah! Wa lao.

Ya really jia lak. Forgot to change 284 to 2.84. Thank you very much

 

[winnipegjets]

What the fuck does this say about inflation?

Do we have to spell it out to you? You are too much work.

 

[tonychat]

sinkie..ass pain or not...

 

[AttilaTheHun]

[h=2]CPF Minimum Sum up 184% in 13 years[/h]

May 23rd, 2014 |

Author: Contributions

We refer to the article “Singapore Parliament reopens: CPF schemes for retirement to be improved, says President Tony Tan” (Straits Times, May 17).
CPF schemes to be improved?
It states that “Among the Government’s goals in its second term is to ensure that Singaporeans are adequately prepared for retirement, with enough savings to tide them through their golden years. The CPF schemes are meant to be a way to build up retirement funds.”
ES alerted us to page 19 of the 2001 CPF Annual Report.
Higher proportion of members meeting the minimum sum?
It states that “In 2001, 36,816 members were brought into the Minimum Sum Scheme.
Of these, 5,827 bought annuities, 13,373 pledged their properties and 14,433 left their Minimum Sum either with the banks or the Board.
The remaining 3,183 consisted of members who had no Minimum Sum to set aside as they had small balances, and those who were exempted from the scheme because they were terminally ill, had passed away, had their own annuities, had left the country permanently or were pensioners in receipt of a monthly pension.”
As we understand and estimate that each age 55 cohort is about 40,000 – it would appear that most of the cohort who turned 55 were in the Minimum Sum Scheme.
Now only 1 in 8 can meet entirely in cash?
Now, fast forward to today – and we estimate that only about 1 in 8 who turn 55 will be able to meet the combined total of $198,500 for the CPF and Medisave Minimum Sums.
Why is it that apparently lesser Singaporeans seem to be able to meet the minimum sums?
184% increase in 13 years?
Of course, the Minimum Sum was only $70,000 in July 2001 (not sure if there was a Medisave Minimum Sum then or the amount).
It has increased by 184% in 13 years to a combined total of $198,500 now, or 8.4% per annum.

SY Lee and Leong Sze Hian

Another PAP IB thread selling the idea of CPF.

 

[ykhuser]

meaning what?the more you earn $, the more 20% you contributed,the more stupid you are.
the smartest are the $2k earner.they contribute not too much,yet they have enough cash to spare.free time, they go earn partime that dont need contribute 20%

 

[Cerebral]

meaning what?the more you earn $, the more 20% you contributed,the more stupid you are.
the smartest are the $2k earner.they contribute not too much,yet they have enough cash to spare.free time, they go earn partime that dont need contribute 20%

There are 2 ceilings to safeguard the ministers' pay. Monthly cap at 5k and annual cap

 

[HeMan]

In another 20 years time, MS half million...... swee lah!!