Dear CPF: Give Me Back My Money!

[Playtime]

SINGAPORE: The Monetary Authority of Singapore (MAS) made a net profit of S$19.2 billion for the year ended March, due to better investment returns and currency effects, according to its annual report for the 2018/19 financial year released on Thursday (Jun 27).

 

The figure, net of a S$3.9 billion contribution to the Consolidated Fund, is more than three times higher than last year’s net profit of S$5.3 billion even as higher investment and interest expenses increased total expenditure by 51 per cent to almost S$4 billion.

 

MAS made total gains of S$26.2 billion from the investments of its official foreign reserves. It was S$8.5 billion in FY2017/18.

 

The gains comprise an investment return of S$25.2 billion and positive currency translation effects of S$1 billion.

 

The latter was largely due to the depreciation of the Singdollar against the greenback, though that was offset by a stronger Singdollar against other major currencies such as the euro, MAS said.

 

As in previous years, the investment return for FY2018/19 came mainly from interest income and realised capital gains. It was also similar to the S$22 billion achieved in the prior two financial years, despite volatility in global markets last year, added the central bank.

 

At the end of March 2019, MAS held S$400.7 billion of foreign reserves on its balance sheet. It said that the funds are invested in a well-diversified portfolio, comprising different asset classes across various geographies, for good long-term returns and resilience across market conditions.

 

About three-quarters of the portfolio are denominated in the US dollar, euro, yen and British pound, with the greenback forming the bulk. Investment-grade bonds in the advanced economies form the largest allocation in the portfolio, MAS said.

 

Its financial statements also said the board has approved a return of S$35.2 billion – S$19.2 billion net profit from FY2018/19 and S$16 billion from the General Reserve Fund – to the Singapore Government this year. This compared with last year’s approved returns of S$2.7 billion.

 

The return of profit to the Government from the General Reserve Fund and/or from the net profit of each financial year is determined by the MAS. Any remainder of the net profit is credited to the General Reserve Fund in accordance with Section 6 of the MAS Act, according to the financial statements.

 

“In approving the amount of profit to be returned, the board ensures that the authority’s capital and reserves remain adequate for the authority to carry out its principal objects and functions. The return of S$35.2 billion bolstered the Government’s Singapore dollar deposits held with MAS,” the central bank said.

 

This follows the May 8 announcement of a transfer of S$45.2 billion in excess foreign reserve assets to the Government for longer-term investment – a move it made after assessing that a lower than current foreign reserves level will still enable it to meet the objectives of supporting the conduct of monetary policy and fostering financial stability.

 

“Accordingly, the Government’s Singapore dollar deposits with MAS were reduced by this amount as consideration for the asset transfer,” MAS said.

 

This will be reflected in next year’s financial statements as the asset transfer took place after the end of FY2018/19, it added.

 

 

https://www.channelnewsasia.com/news...-2019-11666024

Maybe cpf rates will go up...

[Hubwee]

That means he had nothing in his OA and SA, still wants to complain, not pai seh meh ?

What’s there for him to feel pai seh ??

 

It’s his money and for his age , when he first started out working , the CPF had been sold in such a way that he is able to do whatever he wants with it when he reaches 55 years old .

 

So I think your comments / questions is very uncalled for .

[BanCoe]

Yes I understand your concern of those whom started working in 70's; Inflation has hit everyone and a 5room point block could be got for $35K in 70's  and now its whopping over at about $700K fast forward 50 years down the road; many even lived in decent landed properties which could be got for less than $80K back then too ; and Insurance Companies payout also was good then too; now look at its pathetic returns  

 

Lets take CPF as a social cost or service in a bigger picture and now this countries are pushing the retirement ages to 65/67 when they could "lepak" at 55 in the good old days  

 

Look at Japan and Europe where they gave out or dished out or doled out generous pension schemes in the good 'ol days when people used to hit the bucket around 60-70 of course some did live to 100 also back then; 

 

Now its becoming like everyone is living beyond 80++++ and very few hitting the bucket at 70's and the new tax payers are paying for it and

govt is in red, so who pays for this social cost??

 

Anyways; Ah Gong said no free meal or lunch; anyway's many are on social welfare already; but its a strict process of course so that abuse is minimized; We have no resources unlike Malaysia to "adjust costs" though basic healthcare is very cheap there still but not very high standards   

 

I have a doc friend in a poly clinic here; he says many retiree's (with those MBE Cards white)  just come to polyclinic and TCSS and come for the slightest of ailments and he feels damned tulan with this kind of patients as its just a waste of time and resources; Don't treat them nicely also they get worked up, there are this bunch of nit-wits whom live within us also      

 

Abang ..... there is more yet to come in the next 10-15 years and more bitter pills to swallow now that this Medishield thingy has come in and hospital bills ballooning out too;       

 

 

 

 

 

 

You are talking about people who started working in the late 70s to early 80s. Back then cpf had no minimum sum or retirement sum......you reached 55 you can withdraw whatever is inside and back then a good salary is one that is 4 figures......1k? Even after working till 60, dont think there will be much that they can save up unless they are financially savvy right from the beginning of their working life and back in the 80s most just lead a simple life.....reach 55....happy liao! But the gov keeps changing and extending the deal and many just lan lan followed what was dished out.
You cant compare to those who are below 40-50 whose pay are 5 to 10 more of the previous gen. These will have no problem reaching the retirement sum.......unlike the previous gen.

 

[Hubwee]

There is lots of this kind of “Kopi tiam” talk about CPF abuse by govt ...every time some of this people whom tell me cpf funds will be taken away by govt in event someone dies blah blah blah conspiracy theory comes in , I know it’s not the best of schemes but some monetary discipline has to be imbibed in the people and some people really know how to spin such things from time to time , even if 1% are affected the 99% are not I’m sure

Isn’t it the same as how our government feels that Singaporeans are not able to handle their own money and will squander away all their CPF retirement funds on China gals / Indonesia gals or Vietnamese gals when they get it in one lump sum when they are 55 .

 

It’s also a small percentage of these people who does that but how come the government applies all these minimum sum on everyone ?

[Ct3833]

That means he had nothing in his OA and SA, still wants to complain, not pai seh meh ?

Well, to that user who dislike my post, yes , he did not rob nor steal, why I said he not pai seh to complain because the RA is meant for retirement, if he has to withdraw that money that is set aside for retirement, it is likely that he would have not enough money to spend in future, which will become a burden to the society. Edited June 27, 2019 by Ct3833

[Ct3833]

Whatâs there for him to feel pai seh ??

 

Itâs his money and for his age , when he first started out working , the CPF had been sold in such a way that he is able to do whatever he wants with it when he reaches 55 years old .

 

So I think your comments / questions is very uncalled for .

it is likely that he has no more money in his OA and SA, and he is trying to use his RA next. But RA is meant for retirement, I support government for setting aside money in RA to cater for retirement, otherwise it will be a burden to the society and tax payers when one is unable to survive financially during retirement. Can we imagine a lot of retirees start asking government for funding ? Where would the money come from ? Of course, one can argue that he may have millions, he just want to take out his RA , unfortunately, a rule is a rule. No one is more special than another, oherwise CPF building would have long queue of people trying to appeal for RA, maybe including myself.

At what age the RA should start to reimburse is a different discussion, this is what I do not agree to be at 65. The other one i disagree is the assumption of average life expectancy at 93. I wont disagree the life expectancy will have to move up over time but not 93 at current juncture.

Edited June 27, 2019 by Ct3833

[Playtime]

it is likely that he has no more money in his OA and SA, and he is trying to use his RA next. But RA is meant for retirement, I support government for setting aside money in RA to cater for retirement, otherwise it will be a burden to the society and tax payers when one is unable to survive financially during retirement. Can we imagine a lot of retirees start asking government for funding ? Where would the money come from ? Of course, one can argue that he may have millions, he just want to take out his RA , unfortunately, a rule is a rule. No one is more special than another, oherwise CPF building would have long queue of people trying to appeal,l for RA, including myself.

At what age the RA should start to reimburse is a different discussion, this is what I do not agree to be at 65.

If surpluses were returned to cpf instead of hoarded.. over the years, many may actually be able to retire.

Instead, all the money squirrled away or wasted ... for what purpose ? Surely that's an extreme already.

[Nhyone]

I empathize with them and in some cases,I often take the trouble to queue at CPF offices many times alone just to discuss with the officer to see if there are other ways to help or to get a better clarity on the calculations of the $$$ they may get back if they sell their homes.

Due to accrued interest? It is a "hidden timebomb", IMO, but most people don't seem to mind.

Edited June 27, 2019 by Nhyone

[Evillusion]

Yes I understand your concern of those whom started working in 70's; Inflation has hit everyone and a 5room point block could be got for $35K in 70's and now its whopping over at about $700K fast forward 50 years down the road; many even lived in decent landed properties which could be got for less than $80K back then too ; and Insurance Companies payout also was good then too; now look at its pathetic returns

 

Lets take CPF as a social cost or service in a bigger picture and now this countries are pushing the retirement ages to 65/67 when they could "lepak" at 55 in the good old days

 

Look at Japan and Europe where they gave out or dished out or doled out generous pension schemes in the good 'ol days when people used to hit the bucket around 60-70 of course some did live to 100 also back then;

 

Now its becoming like everyone is living beyond 80++++ and very few hitting the bucket at 70's and the new tax payers are paying for it and

govt is in red, so who pays for this social cost??

 

Anyways; Ah Gong said no free meal or lunch; anyway's many are on social welfare already; but its a strict process of course so that abuse is minimized; We have no resources unlike Malaysia to "adjust costs" though basic healthcare is very cheap there still but not very high standards

 

I have a doc friend in a poly clinic here; he says many retiree's (with those MBE Cards white) just come to polyclinic and TCSS and come for the slightest of ailments and he feels damned tulan with this kind of patients as its just a waste of time and resources; Don't treat them nicely also they get worked up, there are this bunch of nit-wits whom live within us also

 

Abang ..... there is more yet to come in the next 10-15 years and more bitter pills to swallow now that this Medishield thingy has come in and hospital bills ballooning out too;

Yes bro....i agree! My brothers and sisters falls into this bracket thats why i emphatise with this guy. This group of Singaporeans after taking their o levels had no way of upgrading themselves.....this policy started only in the 90s and most would have married and with kids when the government urged the then workforce to upgrade.....bear in my mind with young kids in tow and with maid being a luxury then, even with the slew of help from the gov its rather tough for them.

The guy at 60 still has a daughter who is of tertiary education age......most prob married or had a child a bit later in life. Lets just hope the wheel of life stays high for those who judge without giving second thought.......

[Evillusion]

it is likely that he has no more money in his OA and SA, and he is trying to use his RA next. But RA is meant for retirement, I support government for setting aside money in RA to cater for retirement, otherwise it will be a burden to the society and tax payers when one is unable to survive financially during retirement. Can we imagine a lot of retirees start asking government for funding ? Where would the money come from ? Of course, one can argue that he may have millions, he just want to take out his RA , unfortunately, a rule is a rule. No one is more special than another, oherwise CPF building would have long queue of people trying to appeal for RA, maybe including myself.

At what age the RA should start to reimburse is a different discussion, this is what I do not agree to be at 65. The other one i disagree is the assumption of average life expectancy at 93. I wont disagree the life expectancy will have to move up over time but not 93 at current juncture.

Someone posted the amount MAS profitted in a yr! Why keep the profits for the next gen when there are some who need it now? And i am very sure the guy's daughter would be able to pay-off the loan if its from his RA. The gov is always talking about keeping the money for the next generation.......which generation is that if they cant even think for the current generation. As the saying goes.......tomorrow never comes!

[Ct3833]

Someone posted the amount MAS profitted in a yr! Why keep the profits for the next gen when there are some who need it now? And i am very sure the guy's daughter would be able to pay-off the loan if its from his RA. The gov is always talking about keeping the money for the next generation.......which generation is that if they cant even think for the current generation. As the saying goes.......tomorrow never comes!

I calculated that profit too, it is easy to compute , no rocket science. It is why Ihave said hat I disagreed with the assumption of life expectancy of 93. How to deal with the extra money is another topic, but RA has to be there because some people are just unable to manage their financial. I have seen many of such example. Edited June 27, 2019 by Ct3833

[Watwheels]

What Icedbs mentioned is quite true. Folks of this generation probably get their cpf info from the newspaper. I won’t be surprised if they kept a newspaper clipping on cpf rules years ago to remind themselves. As we know cpf update info via website now and will keep us updated with emails provided you update your account with an email address. If these older folks can’t keep up with technology their info will be very outdated. Maybe that’s why the cpf staff got frustrated and told the man the past is the past if he kept on mentioning the outdated rules. I think most who are not savvy will be very confused and think the govt doped them. How to explain to them? It will no doubt be very challenging as it involves their hard earned money.

[Evillusion]

I calculated that profit too, it is easy to compute , no rocket science. It is why Ihave said hat I disagreed with the assumption of life expectancy of 93. How to deal with the extra money is another topic, but RA has to be there because some people are just unable to manage their financial. I have seen many of such example.

yes there are those that blew away their cpf.......so far i knew personally of 1 case the rest are just word of mouth taken with a pinch of salt...

[awhtc]

what should i do? what can i do?

60 years old liao ... i think the "best" option is to consider hdb lease buyback

https://www.msn.com/en-sg/news/singapore/daughters-education-left-hanging-after-cpf-board-allegedly-disallows-father-to-withdraw-and-pay-for-fees/ar-AADsbBv?li=BBr8Cnr

 

Actually, the daughter should not tap on her father's CPF that is meant for his retirement.

 

Tuition loan from the bank is quite common and not that expensive for undergraduates since it is interest-free during study.

 

If the university is privately run, then it is better for her to work and save up first before taking the degree course since private degrees are less recognised in Singapore.

 

https://www.dbs.com.sg/personal/loans/education-loans/tuition-fee-loan

 

https://www.frankbyocbc.com/products/investments/tuition-fee-loan

[Wt_know]

can work part time and study part time degree

Edited June 27, 2019 by Wt_know

[Evillusion]

Actually, the daughter should not tap on her father's CPF that is meant for his retirement.

 

Tuition loan from the bank is quite common and not that expensive for undergraduates since it is interest-free during study.

 

If the university is privately run, then it is better for her to work and save up first before taking the degree course since private degrees are less recognised in Singapore.

 

https://www.dbs.com.sg/personal/loans/education-loans/tuition-fee-loan

 

https://www.frankbyocbc.com/products/investments/tuition-fee-loan

most prob he and the daugyter didnt think of other sources but the money in his RA which he thinks it is his anyway! Most prob he very tulan that his money is stucked in the cpf-whatever scheme that was intro during his working life. Many of this gen is still stucked with the previous cpf policies of their parents generation.....

always can work part time and then study part time degree

part time degrees are 2nd rate from what i learnt in mcf.... Edited June 27, 2019 by Evillusion

[Hubwee]

Well, to that user who dislike my post, yes , he did not rob nor steal, why I said he not pai seh to complain because the RA is meant for retirement, if he has to withdraw that money that is set aside for retirement, it is likely that he would have not enough money to spend in future, which will become a burden to the society.

I am the one who dislike your post , it’s his money , who are you to assume that he is likely not to have enough money for his retirement and will be a burden to society and he has to feel embarrassed in asking to use his own CPF money for his own Daughter studies .

 

Whether he has enough money to live out his retirement life or not , he does have his children to help .

[Kxbc]

I think he should still write in via his MP and give it a try. The officer reading his application will likely be a different person from the one who gave him the curt reply.

 

Maybe can chum xiong with the officer that daughter will start repayment within x months and finish repayment by y years, x and y being a shorter period than what is the current ruling. And since the daughter has to pay interest, it goes back to his account, thus he is not in a loss position.

 

There are nice officers in civil service. I've dealt with a nice hdb officer many years ago when my father opted out of his selected enbloc flat.