Many people have inadequate savings for retirement. This is due to:
* inadequate contributions
* poor return on CPF savings
* too much money used for property purchase.
I have written a paper to suggest measures to allow people to make adequate savings for retirement, by making better use of the CPF. Here is the paper. I hope you agree with me.
Mr. Tan, maybe you like to include the following points.
ReplyDelete1. Have some priorities for the CPF scheme.
First priority is for retirement fund;Set aside money into an account, more than what is set a side into special account now.
Second--medisave account.
Third..housing on limited basis.This is to ensure that members don't over stretch their balance to buy bigger flats or condo, bigger than they need.
Fourth: set aside money into well diversified portfolio depending on age like the life cycle funds.
Remove the intermediaries and every investment direct into the funds to
lower costs. The insurance agents have messed up members' money all these years, so keep them out of CPF.
The above are my suggestions.
Thank you for championing the cause of the poor members. I support your view that CPF should be the administrator for the annuity so there won't be any competitions for this product. This should be the responsibility of the government.