Why Does the Government Not Want Singaporeans to Save Enough Inside Our CPF?

Two weeks ago, I wrote about how I had calculated that the median CPF balance that Singaporeans would have is about $55,000. This means that half of Singaporeans have less than $55,000 inside our CPF.

Singaporeans Have Only $55,000 In Our CPF! 90% Cannot Even Meet The CPF Minimum Sum!

In fact, I calculated that 73.5% of Singaporeans would have less than $77,500 inside our CPF.

Three-Quarters of Singaporeans Have Less Than $77,500 in Our CPF

I had thus written about how even though the government knows that the majority of Singaporeans simply do not have enough inside our CPF to meet the CPF Minimum Sum, they kept increasing this Minimum Sum since the mid-1990s! Why would the government keep increasing the CPF Minimum Sum to trap Singaporeans’ CPF inside and not let Singaporeans withdraw our money?

CPF Minimum Sum Grows Faster Than the CPF Itself@Facebook

On Tuesday, I wrote that the CPF and Medisave Minimum Sums are expected to increase to $498,000 in 30 years’ time in 2044, at their current rate of growth. (You need to have enough inside your CPF to meet both the CPF and Medisave Minimum Sums before the government allows you to withdraw your CPF).

Slide2

And so, in order for Singaporeans who are starting work today to be able to retire in 30 years’ time, we would need to meet not only the CPF and Medisave Minimum Sum, we would also need to have enough to pay for housing loans – or about $200,000 each for a couple who buys a flat at the average price of $300,000 today. In total, a Singaporean would need to have nearly $700,000 inside our CPF to be able to retire.

Slide8

Today, a Singaporean earns an average of 3% on our CPF (2.5% on the Ordinary Account and 4.5% on the Special and Medisave Accounts). And because of this, it is estimated that 90% of Singaporeans are not able to meet the CPF Minimum Sum of $155,000 today.

Slide10

In June this year, the government finally admitted that they take our CPF to invest in the GIC.

CPF How It Works cropped

This is after many denials. Lee Kuan Yew denied this in 2001 and 2006. Then-Manpower Minister Ng Eng Hen denied this in 2007.

Screenshot (45)

Now, the GIC earns an estimated 6% since inception and if the 6% is rightfully returned to Singaporeans, we would have a higher chance of meeting the CPF Minimum Sum.

Slide8

Yesterday, I wrote about how because we are not getting the additional 3 percentage points interest back, the average Singaporean who works from 25 to 55 would be losing nearly $750,000 from our CPF (or nearly half of what we should earn on our CPF).

Slide5

And the average Singaporean who works from 21 to 65 would lose nearly $3 million!

Slide7

Very clearly, if Singaporeans are returned the 6% interest that we are rightfully earning on our CPF, the majority of Singaporeans would be able to save enough inside our CPF to meet the CPF Minimum Sum and be able to retire.

So, the question now is – why is the government taking our money away and not returning it back to us?

The government takes away as much as half of what we would have otherwise been able to save!

Why doesn’t the government want Singaporeans to retire?

  • Why does the government keep increasing the CPF Minimum Sum to trap our CPF inside?
  • Why does the government not return the 6% interest to Singaporeans and prevent our CPF from growing?

Is this what a responsible government should be doing?

What is the aim of the PAP government? What is their real agenda?

Don’t you think something is amiss here?

3rd Edition Of The #ReturnOurCPF Event

On 23 August, there will be a third edition of the #ReturnOurCPF event.

Join us at the third edition and take a stand. The government cannot take Singaporeans’ CPF to use and tell us that they do not know what they are using it for. This is a derision to Singaporeans and daylight robbery!

On 23 August, we will see you at Hong Lim Park. Let’s come together, be united and speak for change, for the better for our lives, and our children’s.

You can join the Facebook event page here.

Also, my first court case will be held on 18 September 2014, at 10.00am. It will be a full-day hearing.

Return Our CPF 3 Poster Part 2

 Return Our CPF 3 Poster Part 2 chinese

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4 comments

  1. Mikechan

    For the BETTERMENT of our lives and our children’s…

    ISN’T this what a responsible Govt should be doing?

    Thanks

    Sent from my iPad

    >

  2. landragon123

    The word enough is the same as RICH. We Singapore will have enough to retire comfortably as most have a roof over their head. Eat what is needed and not what you wanted and go PUBLIC as LKY likes you to do. The COE is designed to tell the not rich but act rich people to buy a car so he can have 5Cs. We are born with 2, our legs which is also CARS, right?

    As long as you are Healthy & Happy, there is nothing call NOT ENOUGH. When you are Healthy you save on Medical and Doctor’s fee and are FREE of worries and that means you will be HAPPY. Visit http://www.idragon111.com can help you achieve Healthy & Happy LIFE 4ever.

  3. Jim

    Why does Roy just want RETURN OF CPF.
    Roy write about how to invest the CPF to earn better than the 3%. If I spend all my CPF then I will eran 0 %.

  4. teoenming

    Singapore Minister Mentor Lee Kuan Yew and Prime Minister Lee Hsien Loong Want Teo En Ming Dead

    Singapore Minister Mentor Lee Kuan Yew and Prime Minister Lee Hsien Loong want Teo En Ming dead. Lee Kuan Yew and Lee Hsien Loong want Teo En Ming to die young. I am only 36 years old. I do not want to die young. I want to live to a hundred years old and beyond!!! I want to live to a hundred years old and beyond!!! I want to live to a hundred years old and beyond!!! I want to live to a hundred years old and beyond!!! I want to live to a hundred years old and beyond!!!

    In fact, I want to live forever!!!
    In fact, I want to live forever!!!
    In fact, I want to live forever!!!
    In fact, I want to live forever!!!
    In fact, I want to live forever!!!

    Teo En Ming has filed an official complaint against the Singapore Government at the United Nations Human Rights Council Branch and the International Criminal Court. Read the letter here:

    ***********************************************************************************
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    Teo En Ming’s Open Letter (Plea for Medical Help/Assistance) to World Leaders dated 27 Aug 2010. Read the letter here:

    http://lists.mcs.anl.gov/pipermail/mpich-discuss/2010-August/007811.html

    Mr. Teo En Ming (Zhang Enming)
    Singapore Citizen
    Republic of Singapore
    14 Jan 2015 Wednesday SGT

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