CPF System

[culture_counter]

Let's discuss this topic as above. Do you wholeheartedly trust your future retirement with the CPF System?

 

[kzonexx]

I use it mainly for housing & inheritance purposes.

 

[SBC]

Some how trusted it with a pinch of salt.

 

[starfish.starfish]

No it won't be enough for retirement.

 

[SBC]

Agreed that CPF itself is not sufficent. Supplementing it with SRS. More than 65k now.

 

[WWH123]

CPF is a river that feeds into the pool of passive income. Already set aside for ERS. Of course won't be sufficient. Create other streams.

 

[Maeda_Toshiie]

Let's discuss this topic as above. Do you wholeheartedly trust your future retirement with the CPF System?

HAHAHAHAHAHAHAHAHA

Do you?

 

[eternalxiii]

In before akwl88:

- CPF has guaranteed returns

- CPF panel reviewing to raise rates to 6%

- Since CPF is enough for retirement planning, financial advisors are worthless because all they do is to earn high comms to buy car, condo, and take overseas trips



Here's my view: There is no such thing as truly risk-free. The interest (money) has to come from somewhere. Right now the govt likes to say that SG has huge reserve surplus, so even if every single Singaporean were to withdraw his or her CPF today, the govt can pay up.

Somehow I doubt that. Even if they can do it now, in the next few decades the demographics will shift towards much more elderly who will be withdrawing, such that the outflow > inflow. And this trend is unlikely to be reversed since they cant open floodgates for FT anymore (guaranteed lose the next election).

So what it means is that either the CPF monies will be locked up for longer (remember the panel review to scrap retirement age ) OR rates will go down for it to be sustainable. Either way, not good news for any young person who is intending to depend on CPF alone for the next 30-40 years.

Summary: CPF is not enough (especially if you already used it to buy house/pay education loan).

 

[koja6049]

cpf is a superior endowment policy compared to other endowment policies around

 

[BBCWatcher]

CPF is a government run compulsory (and optionally voluntary) savings program for citizens and permanent residents, highly Singapore tax advantaged, and with impressive real yields. This particular government has a AAA credit rating.

It's a terrific, high quality savings vehicle. To the extent you trust any single savings vehicle, this one is extremely trustworthy. However, portfolio diversification is still important.

 

[eternalxiii]

CPF is a government run compulsory (and optionally voluntary) savings program for citizens and permanent residents, highly Singapore tax advantaged, and with impressive real yields. This particular government has a AAA credit rating.

It's a terrific, high quality savings vehicle. To the extent you trust any single savings vehicle, this one is extremely trustworthy. However, portfolio diversification is still important.

Pardon me, is this post sponsored at $1 per post? Sounds too politically correct

 

[Darkzi0n]

i need around 2 mil to retire.. by the time i retire, i think min sum will probably be still below 1mil.... so no, cpf alone is not enough.

but then, to be fair, it wasnt designed to be adequate for everyone to begin with.. it is to ensure most ppl dont starve to death after they retire.

 

[starfish.starfish]

i need around 2 mil to retire.. by the time i retire, i think min sum will probably be still below 1mil.... so no, cpf alone is not enough.

but then, to be fair, it wasnt designed to be adequate for everyone to begin with.. it is to ensure most ppl dont starve to death after they retire.

You might live but will not be living

 

[wahkao3]

Cpf ok lahhh

 

[Earnasyougrow]

Cpf better than let those ang moh countries jiak liao bee do nothing shake leg collect my taxes money as social welfare.

 

[akwl88]

In before akwl88:

- CPF has guaranteed returns

- CPF panel reviewing to raise rates to 6%

- Since CPF is enough for retirement planning, financial advisors are worthless because all they do is to earn high comms to buy car, condo, and take overseas trips



Here's my view: There is no such thing as truly risk-free. The interest (money) has to come from somewhere. Right now the govt likes to say that SG has huge reserve surplus, so even if every single Singaporean were to withdraw his or her CPF today, the govt can pay up.

Somehow I doubt that. Even if they can do it now, in the next few decades the demographics will shift towards much more elderly who will be withdrawing, such that the outflow > inflow. And this trend is unlikely to be reversed since they cant open floodgates for FT anymore (guaranteed lose the next election).

So what it means is that either the CPF monies will be locked up for longer (remember the panel review to scrap retirement age ) OR rates will go down for it to be sustainable. Either way, not good news for any young person who is intending to depend on CPF alone for the next 30-40 years.

Summary: CPF is not enough (especially if you already used it to buy house/pay education loan).

in before agent eternalxiii still defending his fat comms for zbl

heng moi nvr depend solely on CPF for retirement and only as a cornerstone

moi advice to eternalxiii gor gor: chiu not happy with cpf, chiu can no need receive cpf. pls donate all your cpf moolah to those who need it

cheers

 

[Maeda_Toshiie]

In before akwl88:

- CPF has guaranteed returns

- CPF panel reviewing to raise rates to 6%

- Since CPF is enough for retirement planning, financial advisors are worthless because all they do is to earn high comms to buy car, condo, and take overseas trips



Here's my view: There is no such thing as truly risk-free. The interest (money) has to come from somewhere. Right now the govt likes to say that SG has huge reserve surplus, so even if every single Singaporean were to withdraw his or her CPF today, the govt can pay up.

Somehow I doubt that. Even if they can do it now, in the next few decades the demographics will shift towards much more elderly who will be withdrawing, such that the outflow > inflow. And this trend is unlikely to be reversed since they cant open floodgates for FT anymore (guaranteed lose the next election).

So what it means is that either the CPF monies will be locked up for longer (remember the panel review to scrap retirement age ) OR rates will go down for it to be sustainable. Either way, not good news for any young person who is intending to depend on CPF alone for the next 30-40 years.

Summary: CPF is not enough (especially if you already used it to buy house/pay education loan).

Who do you think is more likely to default? SG gahmen or private insurance company?

 

[akwl88]

Who do you think is more likely to default? SG gahmen or private insurance company?

If gahmen default, will pte insurance company still be standing?

If pte insurance company default, will garmen still be standing?

 

[dendii]

Let's discuss this topic as above. Do you wholeheartedly trust your future retirement with the CPF System?

If you rely on the CPF system for retirement, sad to say you are probably doomed. That applies to the middle-income earners.

You probably wont starve to death but you certainly won't be retiring comfortably as you would like.

Without any passive income to supplement your CPF Life payout, and with inflation as we see, future ain't that bright bro.

My advice. Insure yourself with the proper coverage first. Start investing on your own. Or explore a side business that is able to generate some form of additional income.

 

[windwaver]

Let's discuss this topic as above. Do you wholeheartedly trust your future retirement with the CPF System?

It should be sufficient if you hit the max retirement sum currently at $161,000.

The problem is always with medical not with the retirement system.