Saturday, September 29, 2007

much has been discussed about the latest additions/revisions to the cpf thingy, ie (1) compulsory annunity for all singaporeans, and (2) increase in interest rate, and i think its time for me to say what i feel about the whole thing till now.

(1) compulsory annunity for all singaporeans
i can understand the kindness and foresight of our garberment to make sure that we have some $$$ till we die. its really thoughtful of them as we normal singaporeans who aren't armed with any form of scholarship will not be able to look 30 years ahead and understand what we may require then. now you understand why me and you ordinary folks do not deserve the scholarship right? but then hor, forcing us to buy compulsory annunity which only starts to pay when we reach 85 just doesn't make sense to most of us, as we singaporeans in general really don't think we can live till that old age (although we might), and if we die much earlier than our projected lifespan, isn't it stupid to let the insurance companies gobble up our hard-earned money so easily? furthermore, by the time we reach 85 or more, i wonder how many of us will still be able to go to the atm machine/internet to withdraw our monthly allowance.. we may be too weak or too sick to even perform such a task.

(2) increase in interest rate
i seriously feel that there is a conspiracy to announce the increase in cpf interest rate after the announcement of the compulsory annunity, coz the latter is supposed to distract the public from the heated debate/disappointment expected from the earlier topic. an increase in percentage of interest is a good news for all singaporeans as we are getting more, however to distract the public, the garberment discuss on if the increase in percentage is enough or not. frankly speaking, this topic is much easier to accept than the previous one as we are getting more so no complains even though we probably should get more as the returns from garberment investments are more favourable. however, its something we cannot control. just look at the bank: they give us pathetic 0.25% per year for our hard-earned money, and they in-turn lend us OUR money at 4.25% interest for our university education loan and 3.25% for our car loan. what is this man?!?! can we ask from bank for higher interest? we cannot. similarily for the garberment, if they earn more money, they also have rights not t0 give us more although they are using our money.

nevertheless, there is one very important fact which the garberment and the general public failed to realise between money we put in bank and money we put in cpf: the latter is involuntarily and there is no liquidity! in another words, we do not have a choice in how the latter is used and thats why we are very very unhappy.. its like telling you that you have $1,000,000 but sorry you cannot see it and use it as you want but it will be managed professionally and you will get a small portion of it upon your twlight years.. WTF rite? if its voluntarily, i guess we singaporeans will be happy with interest of 0.25% instead of 3.5%...

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