Originally posted by Atobe:
If the GIC did not use CPF
funds to invest, how does this Government take responsibility for
allowing such a big pool of money sitting idle at the CPF ?
What has the CPF done to ensure that the huge accumulation of funds
will earn a ''reasonable''
return for every Singaporean contributing into the CPF - especially
when other private investments has done better with smaller amounts
being managed ?
The amount accumulated is mind boggling even if one is to make a
conservative estimate of an average Singaporean employee earning a
fixed wage of $2000 per month for the next 35 years without pay
increase; and pays 20% into his CPF while the Employer pays 16% -
which will result in an assured monthly CPF contribution of $720;
or $8,640 p.a.
If this amount earns 2% compound interest per year, by the time
this Employee reaches his retirement on the 35th year of working
life, he will have approximately $440,591.33.
If the retiring population is 100,000 workers, and each has
$440,591.33 in his CPF, there would have been an accumulated sum of
[b]$44,059,133,000.
If the entire Singaporean work force of approximately 2,000,000
were to retire over the next 20 years - the Government will have to
find $881,182,660,000.00 to pay everyone.
The combined reserves and annual profits made by the GLCs are
included can hardly come to such a sum.
Does the CPF alone has this amount to pay out over the next 20
years ?
This question becomes even more pertinent considering that the
Government is known to borrow from the CPF for the development of
infrastructure.
Can infrastructure provide any return to the borrowings from the
CPF ?
It is obvious that there is hardly any such amount to payout to
Singaporeans any lump sum based on the original CPF scheme of
retirement at 55 years of age.
The Government changing of the CPF scheme by further delays to the
CPF draw out age is a clear indication of dishonesty in breaking a
social contract of trust with Singaporeans.
[/b]
But I believe the MAJORITY still trust them. Like they did about
50 years ago.
