Ignorance Is Bliss
http://www.singaporedemocrat.org/CPF.html
Cited:
The original intent of the CPF was to help workers save for their old age and for them to be less dependent on the state when they are no longer economically productive. Few quarrelled with this notion. Since then, however, the system has allowed members to use their savings to finance their homes, pay medical bills, service insurance policies and even punt on the stock market.
...It wasn't until 1999, however, that an inter-ministerial committee set up by the government finally admitted that many Singaporeans "assume that their CPF savings are enough for retirement" when in fact they are not.
...In fact, Asher calculates that returns to CPF members between 1987-1998 was zero percent, with five of the 11 years actually registering negative returns.
Even the World Bank commented on this outrageous situation. In 1999, it noted that on average CPF's interest rate was in fact lower by 0.4 percent than those of the four Singapore banks to which it was pegged. India, Malaysia, and the United States on the other hand have done much better for their people. This finding was reinforced by an economist at SG Securities who noted that the average real return on Singapore's financial reserves is one of the lowest in Asia. "We have a problem in Singapore," he cited. NUS business school professor Koh Seng Kee pointed out that "Should there be a financial or political crisis, the wealth of Singaporeans will dissipate quickly."
Hmmmm... sounds scary.
No wonder so many 'uncles' complain.
As I student, I don't pay CPF. So I'm not that affected. So next time should I go the way of self employment?
Cited:
The original intent of the CPF was to help workers save for their old age and for them to be less dependent on the state when they are no longer economically productive. Few quarrelled with this notion. Since then, however, the system has allowed members to use their savings to finance their homes, pay medical bills, service insurance policies and even punt on the stock market.
...It wasn't until 1999, however, that an inter-ministerial committee set up by the government finally admitted that many Singaporeans "assume that their CPF savings are enough for retirement" when in fact they are not.
...In fact, Asher calculates that returns to CPF members between 1987-1998 was zero percent, with five of the 11 years actually registering negative returns.
Even the World Bank commented on this outrageous situation. In 1999, it noted that on average CPF's interest rate was in fact lower by 0.4 percent than those of the four Singapore banks to which it was pegged. India, Malaysia, and the United States on the other hand have done much better for their people. This finding was reinforced by an economist at SG Securities who noted that the average real return on Singapore's financial reserves is one of the lowest in Asia. "We have a problem in Singapore," he cited. NUS business school professor Koh Seng Kee pointed out that "Should there be a financial or political crisis, the wealth of Singaporeans will dissipate quickly."
Hmmmm... sounds scary.
No wonder so many 'uncles' complain.
As I student, I don't pay CPF. So I'm not that affected. So next time should I go the way of self employment?
posted by darren at
10:02 pm
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