Saturday, May 26, 2018


Someone asked me:
What is the CPF/ HDB mess?

My reply:
1. Not enough CPF for retirement.
2. Cannot take out CPF in full at 55 or even 65.
3. Low return on CPF savings
4. HDB - expensive
5. Poor value after 40 years.
6. Confusing CPf schemes - medisave, Medishield, Eldershield, integrated plans

Do you agree?

1 comment:

Yujuan said...

Folks here must have mindset your CPF savings dun really belong to you,
so take advantage using it to fund your HDB property purchases, and use your private cash savings to invest to fund your retirement. Mind, not many people are savvy enough to invest on your own. Get advice.
Presently the CPF Board looks liquid, i.e. has sufficient funds to service retirement withdrawal at age 55/60 thru the various confusing schemes to confuse you deliberately.
But if a Law is enacted in some future time you can't use CPF to fund your property purchases, then this sets the alarm bell ringing. Are there enough money in the Kitty to pay you? GIC and Temasek can't liquidate the investments abroad with a snap of the finger, some take decades to recover loss making investments, or bite bullet and cut losses.
How pragmatic and prudent our Govt is, you can't foretell a contingency won't happen outside our little Red Dot.
Meanwhile, just give our Govt the benefit of the doubt your CPF savings look OK.

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