Some seniors allowed to use CPF Retirement Account for housing

Property Guru – 10 hours ago

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ricky l • a second agoRemove

I think there are quite many people who think that :-
(1) CPF is our money and we are want it back at 55.
(2) We can invest on our own and will be better than CPF returns.
(3) As long as we get back all our money at 55, we are safe.

I think this are 3 very crippling not only to each individual CPF members but also cause a big burden to the society as a whole.

(1) CPF money has 3 parts - 1 contributed by CPF members. 2 contributed by Employers as specified by CPF Act. 3. Government involvment in legislating CPF savings as well as investing all our CPF fund in very safe instruments to help us to reap return of 2.5%, 3.5%, 4% - which are very good returns for such risk free instruments.
Thus by saying CPF is fully our money - is not really correct because it has 3 components to it - though eventually the "full basket" will belong to the respective CPF members into the twilight years.

(2) If remember correctly, when CPF is open up for individual member to invest on their own - more than 50% of the investment result in loss or earn return lower than what CPF rate of return.
The fact speak for itself - individual will take high risk to invest in high risk instrument if they have all the money back at 55 to want to reap more retirement fund - if they are desparate to earn more - but will normally cause them to lose most if not all their CPF savings.

(3) If we get all the money back at 55 and think the money is in our pocket is safe - the savings is not guaranteed because :-
(a) they may invest in bad investment (on high risk high return instrument) and lose everything
(b) they may spend all of it
(c) all their money may be cheated and lose everything
When these happen - they will live in a miserable state, commit suicide or cause unrest or give problem to the Government and the society by demanding more welfare scheme etc.

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ricky l • a second agoRemove

Many of those who demanded the return of CPF - have already wipe out their savings - and want to draw on their CPF.

But what happen they also wipe out their entire CPF savings once they get their hands on it and they still have many more years to go? What do you think they will do? Live in misery, commit suicide, hue and cry?

If the CPF savings are still around - and dispense monthly, as least they still can put food on their table and will not die of hunger.

But the best is, if Government can help to provide jobs to everyone to work until 70 years old and earn enough savings for retirement.

With such savings plus CPF - retirement will not be a problem.