More CPF savings with new rules

[Icedbs]

Yup, when you're at a certain "productive age", say between 20s ~ 40s, you think you've learned all you need to stay employable.

And then at your 50s, a sudden surge in new technology develops. If you do not stay current, then you'll fall behind.

 

I know many people who just get turned off and gave up and stayed with what they have learned.

They don't advance forward.

 

A radio technician who repairs with discrete components may think he's the best during his time.

Then tech change to using chips. If he don't learn the new tricks, how to repair with new equipment and new methods, he lags behind.

Then tech change again to networking radios, now he has no networking knowledge and refuse to learn, he falls further behind.

Now the company he's worked for, for many years finds it hard to retain him, bcuz the business has changed.

Old products are gone, it's no longer there, but replaced by new technology that that radio repairman can't handle.

 

I know a guy that at age 50 decided to go for a fitness instructor certification. He gave up a very good paying corporate job to go for that. He told me that fitness was his passion, and if he doesn't do ti at 50, he will never live his dream.

 

People think he was mad because most PT (personal trainer) are young punks in the gym. They think the punks will laugh at him.

 

But because he looks darn fit for someone at 50, he became an "asset" where a lot of senior-age clients look at him as role model for fitness. A young PT looking good at 20s is everywhere, looking good at 30s is lesser and looking good at 40s is rare, but at 50s it is almost unheard of. And guess which type of client has deeper pockets and more worried about their health? Obviously the senior age ones.

 

So he is making darn good money now. But imo, it is not money that he gain most, but the ability to gain better fitness and health for  himself in this job that is the most valuable for someone at 50. Other people at 50 could be stressing over their corporate job and having their soul eaten away bit by bit everyday by their corporate stress.

 

Hence, never worry about continuous learning at any age. There is always a window of opportunity for anyone who does that.

 

 

Edited January 3, 2016 by Icedbs

[Ben5266]

Yup, when you're at a certain "productive age", say between 20s ~ 40s, you think you've learned all you need to stay employable.

And then at your 50s, a sudden surge in new technology develops. If you do not stay current, then you'll fall behind.

 

I know many people who just get turned off and gave up and stayed with what they have learned.

They don't advance forward.

 

A radio technician who repairs with discrete components may think he's the best during his time.

Then tech change to using chips. If he don't learn the new tricks, how to repair with new equipment and new methods, he lags behind.

Then tech change again to networking radios, now he has no networking knowledge and refuse to learn, he falls further behind.

Now the company he's worked for, for many years finds it hard to retain him, bcuz the business has changed.

Old products are gone, it's no longer there, but replaced by new technology that that radio repairman can't handle.

Accountant is the best. 100 years no change of technology.

IT :(

[Icedbs]

Accountant is the best. 100 years no change of technology.

IT :(

 

HR also, just some policy changes from time to time but human nature based on greed and fear is more or less the same.

 

[Lala81]

Yup, when you're at a certain "productive age", say between 20s ~ 40s, you think you've learned all you need to stay employable.

And then at your 50s, a sudden surge in new technology develops. If you do not stay current, then you'll fall behind.

 

I know many people who just get turned off and gave up and stayed with what they have learned.

They don't advance forward.

 

A radio technician who repairs with discrete components may think he's the best during his time.

Then tech change to using chips. If he don't learn the new tricks, how to repair with new equipment and new methods, he lags behind.

Then tech change again to networking radios, now he has no networking knowledge and refuse to learn, he falls further behind.

Now the company he's worked for, for many years finds it hard to retain him, bcuz the business has changed.

Old products are gone, it's no longer there, but replaced by new technology that that radio repairman can't handle.

Hard truth. The analog radio that I wanted to buy for my mum don't exist anymore. Lol I found then in taobao. But they cost much more than digital radios lol

[Spring]

If you do not need the money, why not just leave it in the OA and withdraw only when you need. Correct me, once you cross the 55 years old age, subsequent changes in CPF rulings will not affect you.

Fully agreed that if one has other streams of income, one should leave the funds intact in the CPF to earn higher interest. Trouble is some people still have the wrong mindset that govt don't have enough funds n thus withdraw as much as possible once they reach the eligible age.

 

I know of a friend who insists on withdrawing as much as possible n leave it in the paltry FD just cos he feels better having money in his own hands. Inflation will put paid to his savings so just don't understand his thinking.

[tenyawph]

Fully agreed that if one has other streams of income, one should leave the funds intact in the CPF to earn higher interest. Trouble is some people still have the wrong mindset that govt don't have enough funds n thus withdraw as much as possible once they reach the eligible age.

 

I know of a friend who insists on withdrawing as much as possible n leave it in the paltry FD just cos he feels better having money in his own hands. Inflation will put paid to his savings so just don't understand his thinking.

Ok.  What you mean is that the amount equal to the minimum sum will be transferred to the retirement account, and the excess, if not withdrawn, remains in the OA account?

[Spring]

Ok. What you mean is that the amount equal to the minimum sum will be transferred to the retirement account, and the excess, if not withdrawn, remains in the OA account?

Yes I believe funds in excess of minimum sum will remain in OA n that earns 2.5% interest minimum.

Unless u Have use for the funds ie business needs n good investments, IMO it's better to leave it there.

 

The friend I'm talking about doesn't have either but he stills wants to withdraw the money cos he's worried that CPF will have no money to pay him in later years. Leaves it in FD to earn much less than

2.5% but he's happy. From an economic perspective, he's silly to do this but maybe from a peace of mind perspective, he feels safer this way?

[Wt_know]

i dont think sg govt has no $$ to pay but rules can be changed to make it harder and harder to withdraw and higher and higher amount kena locked up ...

 

based on track record ... both harder and higher has been proven ...

Edited January 3, 2016 by Wt_know

[Kb27]

Accountant is the best. 100 years no change of technology.

IT :(

 

I guess there's some changes, although not as drastic.

They probably start counting with using fingers, then abacus, then you have to learn the calculator and maybe slide rule.

Then you need to learn about computers and programs.

 

Well, time never stood still.

Flow with it, learn as the time changes.

Unfortunately, we can't stop getting old, but still need to learn to live in the new world.

[Kusje]

Plus taxable income reduced by $2,400 due to lesser take home pay . Assuming he is paying 10% taxable income , he saves $240 in taxes .

 

Oops...

 

Forgot that. 

[Gitanic]

Plus taxable income reduced by $2,400 due to lesser take home pay . Assuming he is paying 10% taxable income , he saves $240 in taxes .

 

employer save?

[Bacteria83]

I'm a believer of CPF life, I think it's a gd and fair system. I have no problem leaving my cpf money to be converted into cpf life scheme.

 

So to me it's gd to have more money in CPF

[1fast1]

I move that the thread title be changed to "Less take home pay with new rules".

 

It's a "glass is half-empty" vs "half-full" sort of thing. Only, in this case, the former is more accurate.

[1fast1]

LHL is 62 but has a diploma in computer science.

 

don't bad mouth him.

 

he knows.

 

LHL wrote a sudoku solver, which was praised on Ars Technica.

 

I have nothing but respect for his computer skills (and intellect in general).

[Vid]

LHL wrote a sudoku solver, which was praised on Ars Technica.

 

I have nothing but respect for his computer skills (and intellect in general).

 

Nobody would question his intellect. It would be hard to find a better mathematician than him.

 

It's his other skills that we question

[1fast1]

Nobody would question his intellect. It would be hard to find a better mathematician than him.

 

It's his other skills that we question

Haha agree, but I was addressing the compu sci part only.

[Donut]

The CPF salary ceiling, the maximum amount of ordinary wages that employee and employer contributions are calculated on, was raised from $5,000 to $6,000.

 

"Middle-income Singaporeans will be able to accumulate more CPF savings during their working years," Deputy Prime Minister Tharman Shanmugaratnam said when he announced the latest change during the Budget in February last year.

 

 

At least 544,000 CPF members are expected to benefit.

- See more at: http://news.asiaone.com/news/business/more-cpf-savings-new-rules#sthash.pajiY2Zl.dpuf

 

====

1. There are 544,000 people earning $5000 or more here. Excluding sole proprietors, directors and private tutors. 

2. Each person (and employer) will pay $370 more monthly. Gov will receive >$200mil cash monthly. Or gov really short of cash meh?

3. $370 more in the CPF account. About $200+ can be used for housing loan. Positive impact to the property price.

4. $200 less take home pay.... Retail business and COE.... down down down.

5. Boss will tell us... "You already got $170 increase in your CPF. No increment this year." 

 

Are we really richer?

The ChengHu is for sure.

 

 

Chenghu will never do anything for free........ we must always rem this

[Kusje]

I'm a believer of CPF life, I think it's a gd and fair system. I have no problem leaving my cpf money to be converted into cpf life scheme.

 

So to me it's gd to have more money in CPF

 

The concept of CPF life is indeed good but I don't like that nothing seems to be firm.

 

There is no firm payout at all....

LHL wrote a sudoku solver, which was praised on Ars Technica.

 

I have nothing but respect for his computer skills (and intellect in general).

 

What are you not saying?

Nobody would question his intellect. It would be hard to find a better mathematician than him.

 

It's his other skills that we question

 

I guess he might have achieved more if he had stayed in cambridge.