Quote:
Originally Posted by chubbybastard
I don't believe in CPF. The rules are always changing but fundamentally you need to realise that our CPF is used to fund gov expenditure through issuance of ultra long term bonds. As our population is aging, there are less and less contributors but more and more payouts. Its just unsustainable. Kindalike a legal ponzi scheme. As in all ponzi schemes the only way around it is to lock up your funds for longer. That's why you see withdrawal age and min sum keep increasing. I won't be surprised in another 15-20 years withdrawal age will be increased to 70 and min sum is $500k. That meams most people just won't get their cpf money back.
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i think you have incorrect perception about CPF.
1. CPF is different from most other countries' pension system. CPF is what you pay is what you get with interest. Everyone has a personal account and the pension is fixed by what you contributed. Whereas other pension system is funding unlimited pension payouts with current social security tax.
2. The reason of government borrowing is not to cover CPF payouts. It is more likely that increased taxes are used to do so than from borrowings.
3. Governments are not so concerned by local currency liabilities. Why? because they can just do any of the 2 things to solve the issue: print money or raise taxes. Raise taxes you LL have to pay. Can you say no?
4. Locking up your funds is because dont want you to anyhow spend then no money come out and say government cruel never support old people. Most people are like this. They cant save money one. Let them have 100k they will finish it in 6 months, give it to some young girl and then cry poor.
Anyway CPF only covers the basic retirement expense. Its not enough and you shouldnt depend on it as the only means for retirement.
If you have spare cash, invest it yourself.
Forget CPF as its not something within your control.