The future of Singapore
Yesterday, the National Rally Speech was out. In the midst of Singapore's progress, the elderly are not left out of the picture.
The government is extending the retirement age. CPF is also being stretched to aid the elderly through their golden years; make retirement savings last longer. In today's Straits Times, it was also mentioned that there is a new HDB buy-back scheme for older owners, essentially, the Government buys the flats from the elderly but the elderly can still live in the same apartment for another 30 years.
Now the targeted topic here is about stretching the CPF, but here's the catch; one cannot use the extra savings fund for investments in the stock market. This is done to minimise any possible risk of losing money, especially at the old age.
Is it a good idea? Well, I think it works both ways.
Good idea: Well, it preps the older generation for their older age as in recent times, medication is much more advanced and that people are living longer hence the need for cash in the golden years is quite critical.
On top of that, it'll stop them from spending it in the stock market; allowing them to realise that risks should no longer or advisable not to be there, especially when it comes to money at that age.
Young working adults would then have more money in their CPF to allow them to afford a more luxurious choice of housing when the time comes.
Bad idea: The higher monthly cut from CPF would result lesser spending for the working adults. On top of that, there is no guarantee that they may live that long to enjoy the CPF savings.
From the time they work with the monthly CPF cut to the day they get their money, is a long way to go. For some people, CPF cut may be quite a burden for them.
In terms of savings, one can always start having his or her own, without having to depend solely on CPF. Every month, just set aside some cash as savings.
Well, at the end of it, it is still 'our' money and we can do whatever we want with it, be it even investing, but I guess the Government is looking at our end as well, the possibility of not having enough cash for the old age.
Well, this issue of stretching the CPF can really go both ways. What do you think?
Nurwidya Abdul
ArchivesThe government is extending the retirement age. CPF is also being stretched to aid the elderly through their golden years; make retirement savings last longer. In today's Straits Times, it was also mentioned that there is a new HDB buy-back scheme for older owners, essentially, the Government buys the flats from the elderly but the elderly can still live in the same apartment for another 30 years.
Now the targeted topic here is about stretching the CPF, but here's the catch; one cannot use the extra savings fund for investments in the stock market. This is done to minimise any possible risk of losing money, especially at the old age.
Is it a good idea? Well, I think it works both ways.
Good idea: Well, it preps the older generation for their older age as in recent times, medication is much more advanced and that people are living longer hence the need for cash in the golden years is quite critical.
On top of that, it'll stop them from spending it in the stock market; allowing them to realise that risks should no longer or advisable not to be there, especially when it comes to money at that age.
Young working adults would then have more money in their CPF to allow them to afford a more luxurious choice of housing when the time comes.
Bad idea: The higher monthly cut from CPF would result lesser spending for the working adults. On top of that, there is no guarantee that they may live that long to enjoy the CPF savings.
From the time they work with the monthly CPF cut to the day they get their money, is a long way to go. For some people, CPF cut may be quite a burden for them.
In terms of savings, one can always start having his or her own, without having to depend solely on CPF. Every month, just set aside some cash as savings.
Well, at the end of it, it is still 'our' money and we can do whatever we want with it, be it even investing, but I guess the Government is looking at our end as well, the possibility of not having enough cash for the old age.
Well, this issue of stretching the CPF can really go both ways. What do you think?
Nurwidya Abdul
Labels: CPF, generation, golden years, government, investment, luxurious, National Day rally, risk, savings
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