Wednesday, 27 September 2023

We are shifting our daily news to Gutzy.Asia Support us there!

Totally illogical to suggest CPF payout term of 28 years where there is no one to receive balance payout

by Zol

I was born in the year 1954. I am 65 years old this year and I empathise with all who had commented here on The Online Citizen.

I would like to share my own ordeal with fellow CPF members.

Like the others, I had received a letter from CPF informing me to either apply for a monthly retirement payout at 65 years old, or delay it to 70 years old for a better payout sum. This was nothing new as it had been reported in the news and critiqued by many SIngaporeans including an ex-PAP MP Mr Inderjit Singh. However, the one thing that shocked me was that I could only receive $482 monthly from June 2019 under the CPF Retirement Sum Scheme, and this payout would last about 28 years, when I would be 93 years old.

How can the Central Provident Fund Board decide on the terms of payment for my own money? I would like the Finance Minister to clear the air – does CPF savings belong to each individual member?

I then wrote in and requested for a 20-year payout so as to increase my monthly payout, the reason being Singapore’s life expectancy was 85.4 years (based on statistics reported in the media.) The CPF simply rejected it and cited “current policies” as the reason.

And we members were never consulted. However, if you search the CPF website on “CPF-Your Assurance in Retirement”, this article states that “…. you can choose your desired amount of monthly payouts to meet your retirement needs…”.

How did their action reconcile with the statement?

As I am married with no children, I need to support myself from now till death. If I can not secure a job from now till 70 years old, what do I survive on during this 5-year period if I opt in at 70 years old? On top of this, the 4% interest may not even cover inflation in Singapore and the progressive increase in GST for now is 7% to 9%. If using present value to evaluate the 2 options (ie. start the plan at 65 or 70 years old), the best decision is to withdraw all my CPF money now.

In light of my situation (ie. married with no children), it is totally illogical to suggest a payout term of 28 years. When my wife and I pass on, there is no one to receive my balance payout.

I also understand the stand of our Government to refrain from giving out any money for free. I am not asking the Government to feed me. Because in my case, even if I use up my CPF retirement sum by the time I am 85 years old, I still can sell my 5-room flat (if the value is not zero) to support myself without anyone’s help.

Is there a need for the CPF Act to keep changing without consulting the CPF members? Bear in mind that the CPF Board is a Government Statutory Board which is supposed to serve all Singaporeans. Instead, it is acting like a regulatory body in charge of all Singaporeans’ hard earned savings. The CPF Board can at their wimp and fancy change the policies without consulting the members.

Let’s get our facts right:

  1. CPF is only a custodian of members’ CPF savings. That means the money belongs to the members.
  2. CPF savings is supposed to help members save for their old age. The initial age was 55 years to withdraw full lump sum.

These are facts which no one can challenge. Then why make changes to the CPF Act without asking the members? A referendum is the correct and democratic way to give members a say in accepting the new CPF policies or otherwise. Any CPF policy can not be fixed or approved by the CPF board of directors because they are merely custodians of our monies and they do not represent all Singaporeans.

I am also puzzled why none of the political parties or existing MPs who are supposed to be our voices stand up and comment on this issue? I presume with a monthly salary of $16,000, they are unlike common folks like us who need the monthly payouts to live.

In conclusion, I am voicing this out and hope Singaporeans can have a say in this issue once and for all.

Notify of
Inline Feedbacks
View all comments

Latest posts

Election surprises and certainties: Dissecting Tharman’s presidential win

In the 2023 Presidential Election, Mr. Tharman Shanmugaratnam secured a stunning 70.4% landslide victory, surprising many, including himself. Despite expectations that TKL would win the opposition votes, voters from both camps showed a preference for Tharman's charisma and perceived competency. As Singapore reflects on the outcome, questions arise about the election's fairness and the real implications of Tharman's dominant win.

Volunteer as a Polling and Counting Agent for Singapore’s 2023 Presidential Election

For the upcoming Singapore Presidential Election on 1st September, members of the civil society have spearheaded an initiative to strengthen our democratic fabric. We invite committed individuals to join us as Polling and Counting Agents, standing together for a transparent, fair, and just election. This vote counting exercise, organized by members of civil society, is not specifically in support of Mr Tan Kin Lian, a candidate in the upcoming Presidential Election. It's an exercise in active citizenry. Nonetheless, Mr Tan endorses this initiative, which hinges on his candidacy, championing transparency, and has given permission for the results to be shared publicly.

Reflections from the Centenary: The Legacy of LKY and Singapore’s Future

Gilbert Goh reflects on the LKY centenary event: an inspiring showcase of a leader's global legacy juxtaposed against current challenges, urging Singapore to continue its path of progress.

Lim Tean advocates for Tan Kin Lian: A visionary leader for Singapore’s Presidency

In his speech at Mr Tan Kin Lian's launch of his presidential bid, Mr Lim Tean passionately championed the need for a truly Independent President. Highlighting Mr Tan Kin Lian's unique credentials and genuine concern for the wellbeing of Singaporeans, the Peoples Voice leader emphasized the pressing challenges of rising living costs and job insecurities faced by the public. Mr Lim depicted Mr Tan Kin Lian as a beacon of hope for the nation, advocating for a leader who genuinely understands and represents the people’s aspirations.

Tan Jee Say endorses Tan Kin Lian for President: A courageous, genuine, and humble...

In advocating for a truly representative leader, Tan Jee Say underscored Tan Kin Lian's humility, courage, and genuine dedication. Highlighting the pressing need for restored public trust and effective independence, Tan Jee Say emphasized that Tan Kin Lian, as the 'People's President', would bring back hope to Singaporeans and champion true democracy

Tan Kin Lian’s pledge: Rekindling unity and charting a vigorous future for Singapore

In the press conference to announce his bid for the Singapore presidency, Tan Kin Lian emphasizes safeguarding Singapore's reserves and strengthening public service integrity. Drawing on his 30-year leadership at NTUC Income, he envisions a future with affordable living, accessible housing, and job stability, pledging collaboration with the government for a united nation.

Strengthening Singapore’s political foundations: A call to action by Leong Mun Wai on Singapore’s...

Leong Mun Wai urges Singaporeans to strengthen political checks and balances, emphasizing, 'The best is yet to be for Singapore if we dare to make the right decision in upcoming elections.

Trending posts