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Listening to PAP and following their stupid ideas
will make us broke faster
Lucky we are not as stupid as Jac Lau= Fart Sun King
Why do we need 5 Mayors and 80 PAP Ministers?
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After digesting the various inputs from here and from friends, and tonnes of articles... I have come to this conclusion.
1. The way to go is FRS, not BRS because I don't like to pledge anything to chenghu, and also unless you really can guarantee your drawn out monies work even harder for you and earn you more than 2.5% or 4% plus totally risk free (all investments will carry risk, and even more so especially if already lau kok kok aged 55yrs and above).
2. There is no need to top up your RA amount to ERS to enjoy a better payout from age 65yrs (remember to take it out at 65yrs else the default age for drawdown is 70yrs). Because even if you leave your monies in SA, it will also earn 4% same as RA 4%. But the difference is there is flexibility in your SA account. It is still YOUR own money and you can withdraw it anytime. In the RA it is locked up from 55yrs onwards to 65 where it will then transit to CPFLife. At 65yrs, where CPFLife starts, your interests on the entire amount commited go to the common pool. It is NOT your money anymore.
3. ERS is only worth it if you can live longer than 85yrs old. Can you guarantee you will live that long?
Feel free to give your comments and opinions.
Wherever you go, no matter what the weather, always bring your own sunshine
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(18-07-2022, 03:07 PM)sgbuffett Wrote: ERS is suboptimal.
Basic is correct choice.
You should have chosen BRS and kept the rest jn CPF SA to earn 4%. Because the Internal rate of return of cpf life is lower than 4%.
Donch confuse people further ah... CPF already beri confusing. There is BRS, FRS (2 x BRS) and ERS (3 x BRS), referring to the SCHEMES.
Then there are PLANS, of which there are the following: Basic Plan, Standard Plan and Escalating Plan
Wherever you go, no matter what the weather, always bring your own sunshine
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The pitch is to entice people firstly by conditioning them that they will live pass 85yo and then sell the annuity.
How many can and will you live pass 85yo and beyond?
The unspoken is that this entire scheme is to shift the social burden to care for those who live passed their CPF years by making everyone pay for it instead of govt. Your CPF monies no longer is just for your retirement but a social safety net for others. That is why no matter how you compute, the annuity will payout less than you for yourself...
While the govt can argue that govt should not bear all the social cost, but it's even less reasonable for everyone else to bear it for strangers. We did not benefit from others' lives, why should we bear the consequences? The govt on the other hand benefited from voters, else who in their decent mind will pay this bunch of mediocre indecent sums of money as pay or allowance?? Lol
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(27-07-2022, 01:50 PM)Sticw Wrote: The pitch is to entice people firstly by conditioning them that they will live pass 85yo and then sell the annuity.
How many can and will you live pass 85yo and beyond?
The unspoken is that this entire scheme is to shift the social burden to care for those who live passed their CPF years by making everyone pay for it instead of govt. Your CPF monies no longer is just for your retirement but a social safety net for others. That is why no matter how you compute, the annuity will payout less than you for yourself...
While the govt can argue that govt should not bear all the social cost, but it's even less reasonable for everyone else to bear it for strangers. We did not benefit from others' lives, why should we bear the consequences? The govt on the other hand benefited from voters, else who in their decent mind will pay this bunch of mediocre indecent sums of money as pay or allowance?? Lol
Basically make everyone get less per month to fund those who live long life...
We known money has to come from somewhere either taxing progressively or just take from everyone including the poor.
Policies are good or bad depending on the context if you have relatively equal society making everyone pay equally is okay...money has to come from somewhere.
When you have very high inequality, it is almost incompatible with a low tax regime because you want some transfer from very wealthy to others and you have to tax.
Sjngapore is seeing rising poverty especially among the elderly in recent decades. It will get worse and worse under the current system..
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
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vote wisely. change the gov change the policy. this cpf cannot gives us a good retirement, why still bother.
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