PAP Critic Explains “What is bad about Singapore’s retirement scheme (CPF)?”

CPF is like a durian, you either love it, hate it, and sometimes you can’t decide.

To understand why CPF sucks, I went to Quora to find out what people thought about it.

In a highly-upvoted answer, PAP critic Za Pravdu shares his thoughts on “What is bad about Singapore’s retirement scheme (CPF)?”.

What did the PAP critic say about CPF?

The CPF scheme is a good thing for Singapore, and Singaporeans.

I’ll say this again. CPF is good for you goondus.

Seriously? Why does he say this about CPF?

Looking at the way things have panned out in Singapore, a large (and I mean really large) proportion of Singaporeans cannot be trusted to plan properly for their own retirement or even their health care in their silver years. They cannot be trusted to even save for a rainy day or budget their expenses properly without rolling credit card debts.

But is CPF really useful to the average Singaporean?

As someone who is just a bit above the median income level amongst Singaporeans, who’s looking at retirement at 65 in 20 something odd years, I can safely put aside around SGD 200,000 in my retirement account, and start to draw down on that from the age of 65 (which is when I plan to stop working). Hell, if I could I would work till 70. Those 5 extra years will make retirement so much more comfortable.
 
All this with a fully paid up flat above my head, with a maxed out locked away medisave account for healthcare needs.

What about CPF monthly payments after we hit 65? Are the payments pathetic or reasonable?

Once I hit the age of 65, I’ll be getting a monthly payout of anywhere between $1181 to 1669 depending on which scheme I’m subscribing to. And all I have to do is to live past the age of 75 to 77 (12 years max after retirement. Easy Peasy) and the payments would have exceeded the principle sum (not accounting for interest). And this goes on for as long as I’m alive.
 
Hell. If I hit 95 years old I would have had gotten a cumulative payout of over $600,000, three times the principal sum. Imagine if you’re like your grandparents and hit all the way till the late 90s.

You can choose how much you want to receive when you turn 55 years old.

Isn’t CPF a bad deal for Singaporeans?

How is this a bad deal? Looking at it, there’s no way if the CPF scheme was not there I would be able to save up that much. In Singapore’s context all that money will be frittered away on nonsense like a newer car, a nicer house, restaurant meals and vacations to Japan, leaving nothing to retire on.
 
The CPF scheme only looks bad to those who do not study it and work towards using it for yourself. It’s purest form is social insurance. To make sure the ninnys who cannot take care of themselves are taken care off and thus not weigh down on everyone else.

Read his full reply on Quora below:

I hate to be saying this, given that I am a lifelong critic of the PAP government.
With “lifelong critic” being the polite way of saying that I will vote for a one testicaled half blind retarded pomeranian if it runs against any PAP candidate.

The CPF scheme is a good thing for Singapore, and Singaporeans.

I’ll say this again. CPF is good for you goondus.

Looking at the way things have panned out in Singapore, a large (and I mean really large) proportion of Singaporeans cannot be trusted to plan properly for their own retirement or even their health care in their silver years. They cannot be trusted to even save for a rainy day or budget their expenses properly without rolling credit card debts.

Hence, our “beloved” “nanny” has taken the shotgun approach by forcing everyone to subscribe to the system. Yes, they’re paternalistic with a holier than thou know it all attitude. But this time they got it very right.

As someone who is just a bit above the median income level amongst Singaporeans, who’s looking at retirement at 65 in 20 something odd years, I can safely put aside around SGD 200,000 in my retirement account, and start to draw down on that from the age of 65 (which is when I plan to stop working). Hell, if I could I would work till 70. Those 5 extra years will make retirement so much more comfortable.

All this with a fully paid up flat above my head, with a maxed out locked away medisave account for healthcare needs.

Once I hit the age of 65, I’ll be getting a monthly payout of anywhere between $1181 to 1669 depending on which scheme I’m subscribing to. And all I have to do is to live past the age of 75 to 77 (12 years max after retirement. Easy Peasy) and the payments would have exceeded the principle sum (not accounting for interest). And this goes on for as long as I’m alive.

Hell. If I hit 95 years old I would have had gotten a cumulative payout of over $600,000, three times the principal sum. Imagine if you’re like your grandparents and hit all the way till the late 90s.

How is this a bad deal? Looking at it, there’s no way if the CPF scheme was not there I would be able to save up that much. In Singapore’s context all that money will be frittered away on nonsense like a newer car, a nicer house, restaurant meals and vacations to Japan, leaving nothing to retire on.

This numbers look even more ridiculous for the more affluent, who are able to lock aside nearly double of this sum. Or those who have gotten CPF bequests from their deceased parents and who are staring at 4 times the basic retirement sum.

The CPF scheme only looks bad to those who do not study it and work towards using it for yourself. It’s purest form is social insurance. To make sure the ninnys who cannot take care of themselves are taken care off and thus not weigh down on everyone else.

 

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