Troubling part of Gay Loong's NDP message

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

Other than the lie about the govt. helping u to save for your retirement (if they were really helping you, why do they only give you 2.5% interest on your savings when they are supposedly earning so much more using your money?).

So, gay Loong is now saying that the HDB flat and the CPF are key ways to fund retirement? WTF. If you need to sell your flat to fund your retirement, than obviously the current CPF is not working and is a failure. No other country requires their citizens to sell their homes to fund their retirement. CPF was set up to fund retirement, simple as that. I am not aware until his speech that we have a dual retirement program in singapore. So, Gay loong is now saying that CPF by itself is not enough, and must cash out HDB flat to fund retirement? Where will you live after cashing out of your HDB flat? On the streets? In some nursing home in Johore? If I stay in my HDB for 50 years and than cash out of it to fund my retirement, how much is it worth? How much is a 50 year old flat worth? If I bought the flat as a resale when it was 15 years old at the start of my working life, and I now lived in it for 50 years, the flat will be worth what at 65 years of age?. How much can I get for it? Not much, I suspect, with only 34 years remaining on the lease. No banks would finance any purchasers because the flat is so old. And lets not forget that if you cash out of the flat, not all the funds go to you. U have to split it with your spouse, so only half the funds is yours. the higher income earner in the family will have the higher CPF amount in his account and half the proceeds of the flat sales. The lower earner (maybe the homemaker) may not be able to survive retirement based on half the proceeds of the flat sales and a small CPF balance.

His statement indicates that the PAP have pretty much given up on CPF as the retirement program that it was designed to be. After depleting the CPF by allowing withdrawals for deposits and monthly payments for overpriced flats, and coupled with low interest rates, CPF is just a hollow shadow of what it is supposed to be. There are many alarming questions that he raises. The "convenient" way for retirees to cash out of their flat in a "prudent and sustainable way" sounds ominous. Get ready for some PAP hare brained scheme to fuck around with your flat soon.

Your government is also helping you to save enough for retirement. Our population is ageing, and our seniors have fewer family members to support them. They need peace of mind in their silver years. They want to be assured that they can retire happily after a lifetime of hard work.

Singaporeans know that they have to prepare for retirement. People are working longer and saving more. For most of you, your HDB flat and CPF savings are key ways to fund your retirement. The HDB flat has allowed Singaporeans to build a home, and to grow a valuable nest egg for old age. Your flat is an asset which appreciates as Singapore prospers. My team is studying how to make it more convenient for retirees to get cash out of your flats, in a prudent and sustainable way.

Besides your flat, the CPF has helped you to save for your old age. It ensures you have a stream of income in retirement. The scheme works well for many of you, but it can be improved. I will be speaking about this at the National Day Rally next weekend.


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