Asked by Anonymous
Asked on 07 Nov 2018
Just curious what you think because you seem really keen on the CPF program and interested to know what you think the gaps are?
I am not sure if the CPF is the best in the world (because I am not familiar with the rest of the other plans), but I believe it is the best we can find in Singapore.
The only thing I think it can do better is to make the scheme less complicated and let more people appreciate how good the scheme. Many Singaporeans are not having a good opinion of CPF because they do not understand all the CPF schemes available. Once you understand the schemes, you will find that it will not only enable you to be ready for retirement, but also possibly to become rich. That my personal opinion.
It's definitely not the best retirement plan in the world; I believe the Netherlands and Denmark ranks in the top 2 positions. European countries usually offer pretty good retirement plans.
It's interesting to note that in the Dutch countires, the retirement age is set to increase from 65 to 67, by 2025. You can read more about them here: https://www.forbes.com/sites/ebauer/2019/10/22/what-does-it-take-to-build-the-worlds-best-pension-systems-ask-the-netherlands-and-denmark/#3a8e556a49b6.
But CPF in Singapore is also pretty good, in fact, we are ranked 7th (out of 37 global countries) in the 2019 Melbourne Mercer Global Pension Index, and the first in Asia. :) But there's a lot of shade thrown around by the opposiition on what the government is doing with our CPF money, and that I believe puts a huge barrier on how a lot of us view CPF. :( t would be better if we all understand fully what 'a retirement plan' is meant to be and the flexibility that should come with a retirement plan.
The various CPF schemes can also be made simpler to understand, and it would be better if there were less words, and more pictures/videos on the website to explain these schemes better.
Strangely enough, there's few complaints of credibility/trust issues from the Netherlands/Denmark, as I believe that in order for any government to grow your money, there would be some investments involved too. I think what's important is do you trust the govt of Singapore to safekeep your money for you, until retirement age? And if you don't, it's time to emigrate somewhere else instead. :)