Truths about CPF, or otherwise?

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An honorable member of the Coffee Shop Has Just Posted the Following:

What the alternative media says, do you buy it?
Here's an article rationalising it. What do you think?

http://www.fivestarsandamoon.com/10-...rnative-media/

10 worst arguments against the CPF by “alternative media”

10. It has outlived it’s purpose

The purpose of the CPF is to provide a basic source of funds for retirement. Has Singapore grown so rich that we don’t need retirement funds anymore?



9. It forces people to depend on state for retirement plans

How does the CPF “force” you to depend on the state for retirement? Does it say you’re not allowed to save money with other institutions?



8. Abolishment of CPF would immediately open up billions of dollars into the local economy

Thank you TRS for demonstrating why there is a need for the CPF system. When people have money, chances are, they’ll be spending it. Typically, a government doesn’t (and shouldn’t) care about what you do with your money. However, when large numbers of people start turning up for welfare and assistance because they’ve run out of money… then it is definitely the government’s problem.



7. Individuals would be able to see private insurance companies for tailored needs

America is one country that is big on insurance. Private insurance companies are the backbone of their nation’s healthcare, but see how that has turned out for them?



6. Get rid of the retirement age also, it is useless

Irresponsible employers will thank TRS for their grand suggestion. Without a retirement age, they now have the ability to terminate your services early for younger workers.



5. Forces people to try out other retirement policies

If one isn’t disciplined enough to keep money in CPF, how on earth would one be disciplined to keep money in another policy? If you can afford it, go ahead and put your money in a supplementary investment account. If not, why would you risk your hard earned money in commercial policies that could result in losses?



4. CPF thinks Singaporeans are irresponsible and cannot manage their money

No one has suggested that. The issue here is, what risk mitigating factors is the country going to take IF large numbers of people start turning up for welfare? If the CPF system was not there, what is the safety net then?



3. I’m an investment professional, I know how to earn more interest on my own!

Sure – and by all means, go ahead. You can even use your CPF monies to invest if you want to.



2. I can take home more pay today!

Absolutely, who doesn’t want to take home more pay today? How many of us reading this can honestly say you’ll have the discipline to set aside 20% of your money each month into an account…and not touch a single cent of that account for 40 years? And even then, are you disciplined enough to spend only what is most necessary during retirement?

Honestly, come on – how many of us can actually do that?



1. Because it is MY money!

Trust me, the CPF system is ensuring that you get to keep more of your money. If it didn’t exist, and if you trust people to save with discipline and invest with finesse, then there is no problem not having CPF at all.

However, if people do mismanage their money and start turning up for welfare, assistance and social problems start to happen… then the first person to experience is me and you. Taxes will surely increase, because charity has to be funded from somewhere.



It is so very easy for a government to actually #ReturnMyCPF, but when social problems creep in, then good luck to whichever government to try and re-instate the system.


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