Asked by Anonymous
I'm asking this as I have a friend mid 30s, who is a full time freelancer and has no intention to put any cash into CPF. She is worried that when she reaches an age where she can't work anymore and no income in her old age.
I will go for either
1) Retirement plans from Insurance companies
2) Build-my-own by buying into Bonds (30%) and Dividend stocks (70%)
These 2 will help me to fund my retirement. As you mentioned your friend is a ful time freelancer, this demographic personnel usually won't put money into CPF, thus the above 2 recommendation is for your friend's consideration.
Then she should be reducing all her taxable income (if any) as a freelancer. Or even wake up her idea that CPF has a 3.5% to 5% interest that can form part of her retirement. Or better yet, maybe she should be increasing her income to pay heavy tax (so to benefit from RSTU and SRS).
Why would you be worried if you have a plan. You are worried only if you have none right?
Fat bank account. Private retirement plans.
Or wake up and realise that cpf is not really a terrible deal.