Why it’s so hard for S’poreans to understand CPF

[revealer]

Hi, 4% is only for the minimum sum and the medishield amount in CPF.. beyond $200K, the interest is only 2.5%. fortunately, this is the minimum rate specified under the law; otherwise, we may not be so lucky. When you convert your 150K to monthly payment.. you could only get about $500/= per month from CPf for the next 20 years..

If I put my SGD in Bank of New Zealand, this is what they would pay me

Compare that with 4% from CPF and you'll understand why I have great respect for Ho Ching and her team.

 

[revealer]

yes.. but the 4 figure monthly payment

He actually emailed me a scanned copy of his statement so I have no reason to doubt him.

 

[frenchbriefs]

information is available online. all you have to do is do some leg work and look it up.

http://www.ssa.gov/oact/progdata/taxRates.html

there are 2 components to social security tax: oasdi and hi. the former with a prevailing tax rate of 6.2% is for old age, survivors, and disability insurance, and the latter with a prevailing tax rate of 1.45% is for hospital insurance as part of the medicare program. the total ss tax rate is 7.65% for employees and 15.3% for the self-employed as of 1990 to present.

based on an average annual income of over usd100k in a space of 20 years as employee for half of the time and self-employed for the other half, the total contribution would come to usd76,500 + usd153,000 = usd229,500. my actual statement shows well over usd230k. that's because for over 10 years, my annual income is well over usd100k. yes, i earned millions over the years, but my overall tax rate is at the highest bracket, not including ss tax.

yes and u complaining the payout of 1400 is low?if cpf paid out 1400 a month,ur money would be gone in an instant......social security is paying u for life.u opt for cpf life and see the peanuts u get.

 

[Leongsam]

yawnz....that just mean that ur bank are not offering products for that length of time....dumbass i can google right now and find u new zealand and aussie term deposits 12 to 24 mths of 4% interest.

That's for NZD not SGD. You have to compare the same currency.

Those who are not happy with the returns the CPF is offering are most welcome to manage their CPF deposits themselves.

Details are at http://mycpf.cpf.gov.sg/Members/Gen-Info/FAQ/CPFInvestmentSchemes.htm

 

[neddy]

CPF pays far higher SGD deposit returns than any other bank in the world. Compare the 4% CPF rate with the 0.15% my bank BNZ offered me when I wanted to withdraw the money from CPF and place it with them.

NZ$ Deposits

[TABLE="width: 100%"]
<tbody>[TR="class: first-child"]
[TH="class: col, width: 67%"]Term[/TH]
[TH="class: last-child col"]Interest rate p.a.^[/TH]
[/TR]
[TR]
[TD]180 days* ($5,000 - $1,000,000)[/TD]
[TD]4.00%[/TD]
[/TR]
[TR]
[TD]1 year** ($5,000 - $1,000,000)[/TD]
[TD]4.25%[/TD]
[/TR]
[TR="class: last-child"]
[TD]5 years** ($5,000 - $1,000,000)[/TD]
[TD]5.50%[/TD]
[/TR]
</tbody>[/TABLE]

* Interest can only be paid at maturity.
** Interest payment options available (quarterly, six monthly, annually and at maturity).

 

[frenchbriefs]

That's for NZD not SGD. You have to compare the same currency.

Those who are not happy with the returns the CPF is offering are most welcome to manage their CPF deposits themselves.

Details are at http://mycpf.cpf.gov.sg/Members/Gen-Info/FAQ/CPFInvestmentSchemes.htm

first off why are we comparing sgd in a foreign bank?are u one of those PAPees that grasp at straws to defend their case?

secondly those are term deposits,the safest instruments ever......u are getting interest risk free based on ur nation's currency.
cpf is a investment fund.im pretty damn sure a investment fund can beat a fixed deposit anyday or the fund manager deserves to be sacked.

 

[rushifa666]

Only to a certain percentage. Then what's the point? You can't get back cash even if you are savvy. And cashless= painless. Will certainly dull your investment sense

 

[Leongsam]

yes and u complaining the payout of 1400 is low?if cpf paid out 1400 a month,ur money would be gone in an instant......social security is paying u for life.u opt for cpf life and see the peanuts u get.

I entered my details and the estimate I would get if I put my money into CPF life standard is $1,503 - $1,660.

https://www.cpf.gov.sg/cpf_trans/ssl/financial_model/lifecal/Life_Estimator.asp

This is an excellent figure and I am very grateful to the PAP for this wonderful scheme.

 

[Leongsam]

first off why are we comparing sgd in a foreign bank?are u one of those PAPees that grasp at straws to defend their case?

secondly those are term deposits,the safest instruments ever......u are getting interest risk free based on ur nation's currency.
cpf is a investment fund.im pretty damn sure a investment fund can beat a fixed deposit anyday or the fund manager deserves to be sacked.

It's not a foreign bank to me. It's my local bank. I live here and wanted my funds to be in NZ for easier management and tax accounting.

I checked UOB and a few other foreign banks (local to you) and the most I could get was around 1%. Ho Ching gives me FOUR TIMES MORE with no extra risk. It's a fantastic deal.

CPF is not an "investment fund" its a social security savings plan with guaranteed returns.

Investment funds are a different animal altogether. You could lose your life savings if you put your money into an investment fund.

 

[frenchbriefs]

I entered my details and the estimate I would get if I put my money into CPF life standard is $1,503 - $1,660.

https://www.cpf.gov.sg/cpf_trans/ssl/financial_model/lifecal/Life_Estimator.asp

This is an excellent figure and I am very grateful to the PAP for this wonderful scheme.

look again dumbass,payout starts at 65,ur money shrinks at 75,in 15 years ur money is as good as gone.whats more they assume u retire at 65?might as well just ship urself off to soylent green factory and be done with ur miserable sorry ass life.

 

[Leongsam]

NZ$ Deposits

That's for NZD not SGD. I have term deposits in that currency too earning around 5%.

However, for my SGD savings, nothing beats Madam Ho Ching's interest rate.

 

[frenchbriefs]

It's not a foreign bank to me. It's my local bank. I live here and wanted my funds to be in NZ for easier management and tax accounting.

I checked UOB and a few other foreign banks (local to you) and the most I could get was around 1%. Ho Ching gives me FOUR TIMES MORE with no extra risk. It's a fantastic deal.

CPF is not an "investment fund" its a social security savings plan with guaranteed returns.

Investment funds are a different animal altogether. You could lose your life savings if you put your money into an investment fund.

i think u can get 2% easily in sg banks,theres a bank promo right now offering 3% if u fulfill 3 conditions,bank ur salary with them,pay ur bills with them and spend 400 on credit card.and ur money is not locked for 25 years....u can withdraw as and when u like.

 

[Leongsam]

look again dumbass,payout starts at 65,ur money shrinks at 75,in 15 years ur money is as good as gone.whats more they assume u retire at 65?might as well just ship urself off to soylent green factory and be done with ur miserable sorry ass life.

Yes but I can withdraw all my ordinary account deposits above the minimum sum at 55 and that will easily keep me going till 65 when I retire.

The payout is not a windfall every month but it would be far better than the measly NZD1200 I'll get from age 65 in NZ and if I die early in NZ, I have zero to bequeath. With CPF life, I should have around $60,000 from CPF to bequeath to those I leave behind.

 

[Leongsam]

i think u can get 2% easily in sg banks,theres a bank promo right now offering 3% if u fulfill 3 conditions,bank ur salary with them,pay ur bills with them and spend 400 on credit card.and ur money is not locked for 25 years....u can withdraw as and when u like.

I'm sure there are some good deals here and there but I don't have a salary anymore and I put very little on my credit cards.

Besides my philosophy with all my assets is to never touch the principal sum so CPF suits me to a "T". I suggest that all Singaporeans adopt a similar strategy. Add the power of compound interest and I have security for life.

 

[frenchbriefs]

Yes but I can withdraw all my ordinary account deposits above the minimum sum at 55 and that will easily keep me going till 65 when I retire.

The payout is not a windfall every month but it would be far better than the measly NZD1200 I'll get from age 65 in NZ and if I die early in NZ, I have zero to bequeath. With CPF life, I should have around $60,000 from CPF to bequeath to those I leave behind.

well using the eatshitdie example,he earned over 2 million income and only contributed 230k to social security,7.2% contribution rate,for that he gets $1300 payout lifetime,good deal.....u want withdraw lump sum at 55,still want 1300 payout for life?i think u can wait long long...maybe when singapore adopts a australian socialist government and mcdonalds is paying 20sgd per hour.

 

[Leongsam]

well using the eatshitdie example,he earned over 2 million income and only contributed 230k to social security,7.2% contribution rate,for that he gets $1300 payout lifetime,good deal.....u want withdraw lump sum at 55,still want 1300 payout for life?i think u can wait long long...maybe when singapore adopts a australian socialist government and mcdonalds is paying 20sgd per hour.

I cannot comment on the US system but if I compare the NZ system with the CPF scheme, the obvious conclusion is that CPF is far superior.

 

[winners]

Actually, the CPF can be legally exploited and put that money to better use without too much of a difficulty.

 

[Leongsam]

Actually, the CPF can be legally exploited and put that money to better use without too much of a difficulty.

CPF gives its members many options to achieve a higher return.

I made a profit of more than $400,000 in 9 years using my CPF funds.

There is no such option in NZ. I have to keep paying large amounts into a pension fund till I am 65 years old.

When I reach that age, I start getting a very small payout in relation to what I put in mainly because the bulk of what I paid into the fund is being used to pay for the pension of someone else who never contributed a cent.

If I die at 66 my family gets zilch. There is nothing to bequeath.

If this system was imposed upon Singaporeans, there'd be rioting throughout the Island not just in little India.

 

[winners]

CPF gives its members many options to achieve a higher return.

I made a profit of more than $400,000 in 9 years using my CPF funds.

Looks like we are of the same frequencies on this aspect. I've more than tripled my funds via alternative investments and still reaping more profits today.

 

[zhihau]

Minister for Manpower Tan Chuan-Jin

vote the MIW out!