Monday, June 25, 2007

The untouchable CPF money

Some Singaporeans are left in a strange situation nowadays. They have no jobs and yet are not able to withdraw their CPF savings. The main reason, as most people know, is the proposal to allow withdrawal of their CPF minimum sum of S$100,000 at the age of 65. This is above the current withdrawal age at 62.

Question: How many companies in Singapore are going to hire a 55 year old man, much less a 62 year old?

They say that Singapore employment rate of those aged 60 to 64 is currently at 42 percent. I think that is too high of a number. The no. should be lower and even those who are working are just working part-time. So they have no job and cannot get CPF. The simple answer to this problem should be getting rid of the age increase (maybe even lower it), but this being Singapore where the government can make no mistake, the government is saying; learn how to extend your savings so that it can last longer.

Now this is a joke, isn't it. Singapore is already one of the highest saving per person country in the world, but it's still not enough! Now, we must also learn how to extend it. By itself, that's not a bad idea but come on. Wouldn't it be easier (and make more sense) to just get rid of the age increase?

I hope that pride in not the reason why the Singapore government refuse to take such an easy option. I shudder to think when I can get my hands on my CPF money. By the time I retire, the age limit may be 100 for all I know.


Hachiko Monogatari said...

Erm... What is CPF money? Citizen's Penury Forbidden money?

What's the use of all that government-imposed savings to safeguard against old age, when one cannot even live that long to enjoy the fruit of his labors?

Honestly, I cannot fathom the logic behind such idealistic but unrealistic policy.

The Oriental Express said...

I can't understand all these number games. The CPF age limit of withdrawal keeps being extended; the amount of withdrawal keeps being revised.

Yet, recently I tried to take a 40% loan for the purchase of my HDB flat. Yet UOB rejected, saying that their age limit for loans for HDB is 50!!!

Thank God, a senior citizen could be a top agent. I paid for the 40% by cash!!! Now bank officers keep calling me up to offer me plantinum and gold cards or send letters to take up credit facilities. I told them I am over 50 and hence should not be entitled to all these credit facilities. Banks are well-known for giving you umbrellas when you don't need them! Now I lead a carefree, card-less life.

I knew I had to maximize my CPF before age 55, or I'd be homeless!

Life in Singapore is certainly full of numbers!!