Friday, October 05, 2007

Many Keen to Lock More Money in CPF : Minister

I knew it - Singaporeans are damn smart. They found out about the fantastic interest rates that can be obtained by locking their money up with the CPF for decades and they want in!!!
Compare this with those silly W. Malaysians who keep clamouring to take their money out.

Singaporeans have certainly figured out what is good for them after reading last Saturday's Straits Times articles on why CPF rate is as "good as it gets". Many are now eager to have more money locked up with the CPF.
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Many keen to lock more money in CPF: Manpower Minister
Dr Ng Eng Hen says CPF Board will give customised advice, help.
By Lynn Lee

http://www.straitstimes.com/Latest+News/Singapore/STIStory_164295.html
Dr Ng said the CPF Board will be following up on the queries, by giving customised advice and help. -- PHOTO: ZAOBAO

MANY Singaporeans are toying with the idea of locking more money in their CPF accounts, to take advantage of higher interest rates.
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Manpower Minister Ng Eng Hen, who revealed this to The Straits Times, said the CPF Board will be following up on their queries, by giving customised advice and help.
Dr Ng, who announced wide-ranging updates to the CPF system in Parliament last month, sees these queries are a sign of positive feedback.
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'They would not ask this, if they could get better interest elsewhere,' he said on Friday, when responding to the debate on the issue.
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Changes to the CPF system will hit home in January 2008.
For starters, a higher interest rate of one percentage point will apply to the first $60,000 in all accounts. Only a maximum of $20,000 can come from the ordinary account.
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For the Special, Medisave and Retirement accounts, the fixed interest rate of 4 per cent will be replaced with the return on 10-year Singapore Government Securities plus one percentage point. For the next two years, the Government has kept the floor at 4 per cent.
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In addition, CPF members have to wait longer before getting their monthly payouts from their Minimum Sum.
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They will also have to purchase longevity insurance which will pay them a monthly sum from the age of 85 till the end of their life.
The slew of changes is meant to bolster the retirement savings of Singaporeans and ensure they have enough for their twilight years.
But the last two measures - a delayed draw-down age and compulsory annuities - have caused concern.
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Dr Ng acknowledged that most people are not sure if they will live that long, and are worried that the annuity will cost a fair bit.
He said he has asked the committee set up to look into the nitty-gritty of annuities to 'seriously consider' giving more leeway to people, so they can decide when they want to start receiving their payouts.
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His feel of the ground is that overall, there is a 'general acceptance' that the changes are required as people are living longer. He added: 'Singaporeans are very sensible people'.
But he said he would have done one thing differently - he would put in 'bold print' the link between the extra one percentage point interest and annuities, and how the earnings would be more than enough to pay for the insurance.
This explanation would have satisfied nine out of 10 Singaporeans, who 'trust the Government to take care of them, and prefer more reassurance than explanation,' he said.
This message was made but it came after the Government's painstakingly laid out the rationale, details and consequences of the changes.
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It did so as it was the first time the CPF was being tinkered with in a major way, said Dr Ng.
'We were trying to be pure and we were trying to explain to them that we were changing the interest rate system and how it was being done,' he said, noting that this appealed to the rest of Singaporeans who prefer to be 'involved in the process'.
Noting that the exercise was a 'learning' experience, Dr Ng said the Government would be patient and continue to explain the changes to the different groups of Singaporeans.

10 comments:

at82 said...

If that is the case why not give Singaporean the choice to opt-out?!

Since ppl are keen to lock their $ in CPF then having a opt-out choice won't change a thing right?

Anonymous said...

Hmm...how come no one ask me about the opinion about locking more monie into CPF...? Am I not a Singaporean...?

I did NS you know?

Anonymous said...

What Hen did'nt tell us is how many of those enquiries to put money in CPF were prompted by the Workfare scheme and how many walked away after that feeling deluded.

Hen is the MOM chief but why is he dealing with this issue. Why is the Minister of Finance - oops he is the PM only - not working the ground like him?

Two jobs mah, but one pay only. How much is that one pay?

May be 2 pays lumped into one is also one pay :-).

And Singapore so short of talent that poor PM Lee must struggle so hard to handle finance as well. Super genius.

Oh super mess?

Anonymous said...

Opposition in Singapore very "quai quai". Singapore can turn upside down, they just utter a few words or even none.

They are just waiting for the next elections to get into Parliament.

No wonder the people say they dont understand where's the opposition between elections but come elections they suddenly pop up all over.

Such a honour to be inside Parliament what ... but just look how Chiam See Tong performed on the CPF issue in Parliament, you can fall asleep.

Not only we must be grateful to PAP but to the opposition for allowing PAP to do what it likes.

It takes 2 hands to clap.

Stop romancing the opposition!

Anonymous said...

Anon 9.15am.

The CPF is a retirement fund which is managed by the MOM, and not the MOF. So, Hen is the right person to due with the issue.

Please do your homework before you criticize or you'll prove the PAP right that blogs are unreliable!

Anonymous said...

>> "The CPF is a retirement fund which is managed by the MOM, and not the MOF."

Really? Officially? You're a PAP insider on the top level so you know everything going on inside?

Please tell us more.

Tell me why then did MOF replied to the a CPF issues in ST Forum Sep 29.

Is MOF managing Singapore national reserves of which a large portion is made up of CPF savings?

No, you say MOF has not such responsibility.

Is you name Dumb and Dumber?

Anonymous said...

Dr Ng : 'We were trying to be pure and we were trying to explain to them ..."

"Trying to be pure ...". I suppose he was sincere about it.

Just hope he knows what is going on with the finances.

Well we also thought nobody knew better about the CPF savings that the elected President Ong - a former Cabinet Minister to boot - who was in charge of looking after national reserves.

Sort of ... until President Ong wanted to do his accounts and was told by MOF it would take 200 years to get the figure out ... and then later to be told that he would have to take into account the value of all state land in Singapore to balance the accounts.

Dr Ng, are sure you know what is going on in there with the finances to pick up the tab?

Be careful.

Anonymous said...

I cannot trust my $$ in Investment Cheats like Dr Hen and BG Loong Lee, who is a self-professed economist. But, going by their insincere and "unpure" heart, they are nonetheless cheaters of the peoples' money.

They cheat now, and they will cheat later. Their greed knows no bound.

Anonymous said...

The hen is in the fox hole, doing what it is told and feeling so important to be used centre-stage ... and then may be to end up like some previous fox's underlings getting cold storaged or even demolished.

Anonymous said...

The Hen is now learning to crow like a rooster.