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Financial security in Singapore plain and simple.

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Give up Singapore citizenship to unlock CPF savings!

Wednesday, August 8, 2018

Aiyoh, why so many rumors?

If we have questions about the CPF, who should we ask?

Don't ask me.

I blur.






Reader says...
Hi AK, recently I chatted with one of my colleagues and he feels that the govt just keep raising the minimum sum and CPF life drawdown age. 

Apparently there is rumour that the CPF life drawdown age will be increase from 65 to 67. 

He is even thinking of migrating to Canada so that we can withdraw his CPF money.

AK says...
Rumour is a rumour. Haha

Good luck to him in Canada. ๐Ÿ˜‰





Reader says...
Actually this is just to let you know how people are feeling about CPF. 

Like forever cannot touch

AK says...
These people will likely forever have not much CPF to touch ๐Ÿ˜œ

Tell your colleague that the CPF Life automatically pays out at age 70 if we do not opt for earlier pay out date.

Hope that doesn't freak him out. ๐Ÿ˜›


Reader says...
Aiyoh u so bad!





Ya lor. I also say.

Bad AK! Bad AK!

I know Singaporeans who are very dissatisfied with Singapore and everything to do with our country.

They are always complaining about things in Singapore like there is nothing good about our country.

Why not try to make the system work for us instead of thinking that the system is against us?

Could it be that we are against the system instead?

We don't know we had something good until we have lost it.

It is too late then.






Related post:
Government confiscates CPF-MA money when we die!

7 comments:

Wei Yi said...

Agree with AK on this.

CPF is intended to help us grow our retirement nest egg.

Increasing the minimum sum is just factoring the increase in life expectancy and cost of living going forward. The truth is in the numbers, however to some, numbers are unsexy and boring so they choose to believe in falsehoods and conspiracy theories rather than facts in the numbers.

For example previous minimum sums were based on assumption that life expectancy will be 75-80 years.

With the increased life expectancy, the additional years of payout needs to be financed by a higher minimum sum.



AK71 said...

Hi Wei Yi,

I am always willing to accept changes if they are reasonable and changes to the CPF system have been reasonable and also necessary.

People who keep complaining that the CPF system is taking away their hard earned money are myopic.

The CPF is Singapore's own brand of welfare for our people and we really should be taking full advantage of it.

Happy Birthday, Singapore! :D

AK71 said...

Shirl Wong says...
Actually they can withdraw all their cpf and settle down somewhere else instead of in Sg but they just have to renounce their citizenship.
You get to take all your money and also be able to live elsewhere.

AK says...
But people always want to have their cake and eat it too. :p
Singaporeans are very fortunate but not everyone appreciates this.
The ideal life is a dream and we ought to take the good with the bad.
We cannot always have things our way. :)

AK71 said...

Jean Chua says...

Tell you story bah.

I have a relative who did that.

Now money all gone, cannot come back to SG.

(Even if come back to SG, medical costs and all will be at foreigner rate.)

If didn't leave .... no matter what, government will still help if you really can't afford.

AK71 said...

Jack James says...

Ooi ... you guys cannot wait until age 55 is it ? Hahaha .

Wait la , very soon , you will reach age 55 de ....

Yesterday article is interesting . A study shows 60% never withdraw CPF at the age of 55 . That sounds like me .

Then , 40% who withdrew CPF at age of 55 , 51% of them keep them in the bank . LOL.

AK71 said...

Shirl Wong says...
My own relative from tbe era where one can withdraw all cpf. Lucky he bought a small annuity using the cpf money but because it is a small sum, so what he gets also small. However he at least have a monthly sum to tie him over otherwise he will have no income now. People dont realise how important to hv annuity after retirement. Another friend have about few hundred thousands which he took out at age 55. All money gone and now have to depend on handout from children

AK says...
Many overestimate their ability to fund their retirement for a prolonged period.

This is what longevity risk means.

This is the risk which annuities are meant to address.

AK71 said...

Wong Yixiang says...
I like what you said in these paragraphs. ๐Ÿ‘๐Ÿป

As long as CPF Board is willing to extend the 4% floor rate, I feel that CPF is still a really good thing.

Anyway, if the floor rate is taken away, there is still hope: Lifetime Retirement Investment Scheme (LRIS) will be rolled out in a few years’ time.

As what Warren Buffett once said, “If I were going to own a 30-year government bond or own equities for 30 years, I think equities will considerably outperform that 30-year bond.”

Having said that, LRIS may also fails. In that case, I’ll probably be singing “Fix You” by Coldplay: “...tears come streaming down your face...” ๐Ÿ˜ญ


AK says...
We have to remember that Buffett said that in an environment of very low interest rates.

It is foolhardy to buy plenty of long term bonds paying very low coupons.

If bonds were to offer very attractive coupons again one day, I bet you that Buffett would throw all his money into bonds then. ;)

I am talking about investment grade bonds, of course, and not junk bonds. :)

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