learn from lim swee say. everyday think about how much money you
have inside your cpf account, and you'll be very happy.
Yes, in the characteristic Lim Swee Say ways of trying to
be less stupid:
"everyday think about how much
money you have inside your cpf account, and you'll be very
happy"
is similar to Madoff and Stanford telling their
US contributors - think how much they have
contributed, and they should be very happy too.
Do not worry about being "Conned, Peeled, Fooled" - just be
happy thinking about how much money you have given.
When CPF was first started by the British Colonial Government -
it was meant to be an optional and voluntary retirement
savings in addition to the pension scheme.
LKY, Toh Chin Chye and Goh Keng Swee developed the CPF further
as a cheap source of funding for the Government plan to
develop the infrastructure, which at the same time was made
compulsory to enlarged the net to capture a wider section of the
population.
The attraction was that it was a guaranteed retirement
savings plan with interest of 2.5% per annum compounded
annually, with the minimum sum draw down age tied to
retirement at 55.
This withdrawal age of 55 was revised to a later date of 62 as
recommended in the Howe Yoon Chong report - this was
later revised to 63 to be implemented by 2012, to be
changed to 64 years by 2015, and then 65 by Year 2018.
In the late-1980s, new plans were introduced to deduct for
compulsory subscription to Medisave; and subsequently in the 1990s
when Medishield was also added - (with the deductions ranging
from $30 to $705 depending on the insured person's age - Pg 30 of
Annual Report 2007 - premium discounts of $33.50 TO $282 is given
subject to past period of insurance).
Additonal deductions were introduced in the 1990s for
old-age benefits.
All these deductions were in excess of the 2.5% interest payable
per annum.
These deductions co-incided with population growth studies that
showed a steady decline in the number of births.
For the CPF to succeed, the number of retiring Singaporeans
should be very much less and there should be an
increasing number of new workers contributing into the CPF
scheme.
Those contributing must be more then those withdrawing, and this
growth should be consistent every year.
The CPF is designed to be like a pyramid - with a wide
base and a narrow apex.
With the birth rate decreasing, the new participants entering
the CPF scheme every year is shrinking, compared to the
numbers of older Singaporeans retiring.
The CPF pyramid base is getting smaller, even as the number
of aged is getting bigger from the baby boom that
began in the mid-1940s after WW2.
In 2007, the ratio was 8 people aged 15 to 64 for
every senior citizen aged 65 and over, and the ratio will fall to 4
to 1 in 2030; and according to a UN study – Singapore’s population
will be fourth oldest in the World by 2050.
In the CPF Annual Report 2004 - the membership
from Year 2000 to 31 Dec 2004 had shown slow growth:
2004 - 3,018,014 (+39,521)
2003 - 2,978,493 (+15,333) ???
2002 - 2,963,160 (+40,487)
2001 - 2,922,673 (+42,717)
2000 - 2,879,956
In the CPF Annual Report 2007 - the membership
from Year 2003 to 31 Dec 2007 was:
2007 - 3,163,038 (+63,479) ??? FT contributions ?
2006 - 3,099,559 (+51,007) ???
2005 - 3,048,552 (+30,538)
2004 - 3,018,014 (+39,521)
2003 - 2,978,493
Members' Balance as at 31 December 2004 was $111,873.8
million
Members' Balance as at 31 December 2007 was $136,586.9
million
reflecting a growth of $24,713.1 million.
Contributions Received (including Government grants and
dividends)
2007 - $18,185.0 million
2006 - $16,547.1 million
2005 - $16,105.1 million
2004 - $15,320.1 million
2003 - $15,870.0 million
Annual withdrawal
2007 - $11,561.9 million
2006 - $14,350.5 million
2005 - $11,776.1 million
2004 - $10,310.3 million
2003 - $11,816.5 million
New schemes were introduced that initially required S$25,000 to
maintain the retiree till he reach 70. This age was further
increased to 75 then 85.
Meanwhile, the Government continue to toy with the CPF monies
that are designed to delay any payout.
