CPF reform

[w1rbelw1nd]

How much do you know about this survey? Can share how is the survey being implemented and discharged? Who administer this survey? What is the targeted min number of responds from graduates required? Share with us what you know and I will share mine. That will certainly clear all doubts.

Well, I recently just did the surveys since I graduated recently. I have to say that the surveys are probably attempted by those who are employed.... Perhaps those who are unemployed would not bother with it.

Anyway, it is also hard to believe that my 5 digit pay trader friend would bother to do the survey for the stupid lucky draw lol. But since these people are the anomaly I guess most survey replies are from relatively lucky graduates, who are happy to share their pay.

I believe the government have better ways of getting the average salary (from IRAS, for example) but for some reason doesnt reveal data from these more credible sources...

 

[havetheveryfun]

Well, I recently just did the surveys since I graduated recently. I have to say that the surveys are probably attempted by those who are employed.... Perhaps those who are unemployed would not bother with it.

Anyway, it is also hard to believe that my 5 digit pay trader friend would bother to do the survey for the stupid lucky draw lol. But since these people are the anomaly I guess most survey replies are from relatively lucky graduates, who are happy to share their pay.

I believe the government have better ways of getting the average salary (from IRAS, for example) but for some reason doesnt reveal data from these more credible sources...

that's another ? there again.. lets say your trader fren did the survey and put himself as self-employed (think there is a question asking that) and then put hes earning 5 digit.. are they going to take that 5 digit salary and calculate the median salary from there? again, no one really knows...

which is why there is too much ??? about the survey

 

[teerance85]

Medisave Contribution Ceiling to be renamed; Medisave Minimum Sum to be scrapped | TODAYonline

Now the Basic Healthcare Sum will be cohort-based like the retirement sums, and there is no minimum amount one has to keep in the MA. This is a significant concession to those people who fear that they will be forced to keep ever growing amounts in there.

I have some qualms about this. Here is why;

Medisave Contribution Ceiling used to be revised every July. In sync with the new retirement enhancements, the review is done every January. What this means is that interest generated (and credited in 1st Jan) will no longer overflow to other accounts. THis is because by then, the Basic Healthcare Sum is being revised upwards ( i suppose) again. See where i coming from?

2ndly, the removal of the Medisave Min Sum should be a good thing. But the report also mentioned that older citizens now would just need to fit the withdrawal criteria. Say for example; a 59 yr old citizen has this balances;

OA - $100k
SA - $0
MA - $40k
RA - Met his Retirement Sum.

Question; Is he eligible to withdraw $100k from his OA since his RA meets the Retirement Sum. If i base on the previous guidelines (before this change), he needs to top up his MA to the Medisave Min Sum (currently $43,500), then he can withdraw the excess, which means $100k - $3500 (shortfall) = $96,500. So what happens if this new scheme is implemented?

Food for thought. Anybody can answer?

 

[lb95010]

I have some qualms about this. Here is why;

Medisave Contribution Ceiling used to be revised every July. In sync with the new retirement enhancements, the review is done every January. What this means is that interest generated (and credited in 1st Jan) will no longer overflow to other accounts. THis is because by then, the Basic Healthcare Sum is being revised upwards ( i suppose) again. See where i coming from?

2ndly, the removal of the Medisave Min Sum should be a good thing. But the report also mentioned that older citizens now would just need to fit the withdrawal criteria. Say for example; a 59 yr old citizen has this balances;

OA - $100k
SA - $0
MA - $40k
RA - Met his Retirement Sum.

Question; Is he eligible to withdraw $100k from his OA since his RA meets the Retirement Sum. If i base on the previous guidelines (before this change), he needs to top up his MA to the Medisave Min Sum (currently $43,500), then he can withdraw the excess, which means $100k - $3500 (shortfall) = $96,500. So what happens if this new scheme is implemented?

Food for thought. Anybody can answer?

Its confusing and complicate, i.e goal post keep moving for latter cohort.

 

[Bedokian]

Its confusing and complicate, i.e goal post keep moving for latter cohort.

That is one main reason why I always treat CPF as a separate portfolio in financial/investment management. Though we may have plans for it, but it is subject to regulations and conditions, and these may change.

 

[wts2013]

Read the latest CPF In Touch, it is very clear, no need to topup medisave before withdrawal at 55, excess from BHS (previously the ceiling (mcc) will flow in SA/RA

 

[djchris]

I feel that the medisave ceiling equates to the full healthcare sum. The basic healthcare sum is half the amount and probably provides less than half the healthcare too.

 

[anfielder]

I feel that the medisave ceiling equates to the full healthcare sum. The basic healthcare sum is half the amount and probably provides less than half the healthcare too.

There is no such thing as a full healthcare sum. This "half the healthcare" thing is your own imagination, I presume.

 

[djchris]

Let's hope so.

 

[teerance85]

Read the latest CPF In Touch, it is very clear, no need to topup medisave before withdrawal at 55, excess from BHS (previously the ceiling (mcc) will flow in SA/RA

What about individuals after 55, and meets Basic Retirement Sum, but doesnt meet Basic Medisave Sum.

 

[anfielder]

What about individuals after 55, and meets Basic Retirement Sum, but doesnt meet Basic Medisave Sum.

the amount you can withdraw is no longer dependent on whether you have met the basic healthcare sum

 

[w1rbelw1nd]

that's another ? there again.. lets say your trader fren did the survey and put himself as self-employed (think there is a question asking that) and then put hes earning 5 digit.. are they going to take that 5 digit salary and calculate the median salary from there? again, no one really knows...

which is why there is too much ??? about the survey

Haha he is not self-employed. Working in foreign bank.

A lot of statistics given out by government... But no transparency about the figures...

Anyway still don't understand why can't they use IRAS figures instead. Hais.

 

[teerance85]

the amount you can withdraw is no longer dependent on whether you have met the basic healthcare sum

Which means i can withdraw everything in my OA, just as long as my Basic Retirement Sum is met?

 

[w1rbelw1nd]

Now they allow pple to use medisave to pay for ISP premiums up to $800 per annum. GG why did Gan Kim Yong tell this out BEFORE the insurance comapanies come out with the new pricing for the ISP with medishield life? I think pple are now inclined to get e most "comprehensive" and expensive coverage since they are spending money they can't touch anyway. And as a result insurance company can get away with charging higher cpremiums.

Sigh.

 

[wts2013]

Now they allow pple to use medisave to pay for ISP premiums up to $800 per annum. GG why did Gan Kim Yong tell this out BEFORE the insurance comapanies come out with the new pricing for the ISP with medishield life? I think pple are now inclined to get e most "comprehensive" and expensive coverage since they are spending money they can't touch anyway. And as a result insurance company can get away with charging higher cpremiums.

Sigh.

ya, buy higher class ward then stay lower class ward can get cashback, why not if can afford, hahaha

 

[w1rbelw1nd]

ya, buy higher class ward then stay lower class ward can get cashback, why not if can afford, hahaha

Haha I won't do that man. Insurance companies use it as a sweetener because customers are "punished" from staying higher class wards by being barred from subsided wards in the future. Giving customers cash rewards seem to give them best of both world: getting high class ward coverage if clients really need medical care and comfort, and giving them cash if the clients feel they want have the option of cheap medical care available even if they cancel the policy.

My view is that insurance company incur less when you opt for cash payout... So why let them earn? I rather depend on medishield life, save up a sum of money as "medical provisions" and use my medishield life, medisave and savings to take care of medical expenses.

 

[wts2013]

Haha I won't do that man. Insurance companies use it as a sweetener because customers are "punished" from staying higher class wards by being barred from subsided wards in the future. Giving customers cash rewards seem to give them best of both world: getting high class ward coverage if clients really need medical care and comfort, and giving them cash if the clients feel they want have the option of cheap medical care available even if they cancel the policy.

My view is that insurance company incur less when you opt for cash payout... So why let them earn? I rather depend on medishield life, save up a sum of money as "medical provisions" and use my medishield life, medisave and savings to take care of medical expenses.

I beg to differ, it is a win win situation, shld not think like that, it is not dun let them earn, it is "recovering" your money paid, get some money back to pay medical expenses not covered. It can be a bottomless pit, I dun want medical expenses to eat into my savings. Why buy insurance then? Todate, it is still not clear what is covered in isp but not covered in medishield life. Eg of doubts I have: pre and post hospitalisation expenses which are covered in my enhanced incomeshield.

 

[tiny]

If there is no need to fulfil the Medisave Minimum Sum at age 55 before withdrawals from OA/SA... then people won't be bothered to top-up their Medisave. Right?

Is this new policy flawed?

 

[wts2013]

If there is no need to fulfil the Medisave Minimum Sum at age 55 before withdrawals from OA/SA... then people won't be bothered to top-up their Medisave. Right?

Is this new policy flawed?

Who wants to topup medisave when u cannot withdraw it? Self-employed "forced" to topup, those who dun have sufficient money to pay from medisave would need to topup, hahaha

 

[teerance85]

Who wants to topup medisave when u cannot withdraw it? Self-employed "forced" to topup, those who dun have sufficient money to pay from medisave would need to topup, hahaha

The advantageous of topping up to Medisave is to make use of the overflowing feature, whereby excess medisave monies flow over to SA or RA. I reckon that's a more powerful force then compounding.