Well written counter comment on Annuity. SG

[Spas]

The way the annuity works is genius.

 

You see, rich and powerful have the means to stay alive far into their golden years - past 85 years.

 

The less wealthy - numerous in their numbers - may not have the means to do the same.

 

Put the rich-and-over-85 together with the numerous poor who die before 85, and you have classic and literal example of The Poor Supporting The Rich.

 

Pool the money of the numerous low-income together, and you have enough monthly pocket money for the few rich-and-over-85s.

 

It usually works the other way round in other countries, but in Singapore we have the wealthy being propped up by the less-wealthy. Wonder why other countries are doing.

 

Genius I say. Our government's really worth every dollar of the million dollar salaries we give them.

[Snookium]

I had copy part of the comments in CNA together with the coffin lid quote... Let see if CNA wanna to post. It time to test the freedom of speech. Our MM said there is indeed Freedom of speech... rite?

 

 

Post your comment in CNA too.

 

http://www.channelnewsasia.com/polls/commentform.php?id=59

[Porker]

One way is to be a Quitter.. then take out everything that belong to u..provided its not cannibalised

 

Welcum to Thailand... Where you cum from mister??

[Rickster]

When medishield is introduced (premiums very low), you still have an option to opt out. Now when they try to implement this annuity which kapok half your coffin money, it will be a compulsory thing which you cannot opt out. This is daylight robbery man! Where is justice? The police become thief liao.

 

I pity those uncles who are only earning just enough to hit the minimum sum upon retirement age (supposedly retirement age). This policy will rob him of half his coffin money built from a lifetime and the only good news is he probably won't realise the impact till he run into financial crisis at age 60+ and have to borrow money from loan sharks. Then he will die from loan shark harrassment or jump off mrt and won't reap a single cent from the annuity because he don't have the money to live till 85. (Maybe the official age to collect annuity payment will shift to 95 years old by the time he retires - you can never trust those bxxxxxds)

 

I, for one, is not personally against the annuity scheme. But, the garment should give an option to the people. How can they make decision for us on our own money?

 

Thats the main unhappiness.

[Rickster]

I am not an expert but

 

IMHO, One of the problem of insufficient CPF funds is that it is used to pay HDB. At that time, it is done because it can help the poor acquire a roof easily.

However, we are a victim of our own success. As we prosper, property price shoot up.

 

People buy HDB on very long loan 30 years. By the time they finish paying, not much CPF left

 

You will probably paid 2x the amount of the flat value when u are done.

e.g hdb 200K, total paid with interest = 400K.

If CPF money can't be used to buy hdb, you would have at least 400K when you retire.

 

400K = $1666/month for next 20 years.

 

If we are to use cash to pay for HDB, then people will not anyhow buy property beyond their means. Property price may not rise so drastically because no one in the right mind will part with majority of their disposable income to pay for a hdb. Compare this to paying for it with cpf money u cannot see until u retire.

Simple check: say you earn 4.5k a month, and paying your home at $900/month using CPF money. will you be willing to pay $900 in cash? most will say no = no crazy property price.

 

But even if you did spend a lot of disposable income in your payment, when you retire, You would have at least 30 years of CPF contribution to see you through your retirement.

 

What you say is quite true. Its a vicious cycle. The only way to break out of this cycle is to downgrade and sell your flat.

 

I recently helped my fren's parents shift house. They downgrade from a clementi 4-room to jurong east 3-room.

 

The reason is simple. Since all their kids (except 1) married liao. They don't need such a big flat and sold their 4 room for $412K and bought a 3-room flat for $185K. The balance, they use it for retirement funds.