Posted on 24 Apr 2019
We're meeting the CPF team next week and we are keen to give them some feedback on how it can be improved as well. I just wrote a piece on CPF vs other pension schemes in the world, and I'm curious to understand the community's thoughts on CPF in Singapore!
The main issue I have with CPF is the CPFIS scheme. Some reforms have been implemented but more can be done.
Cost prohibitive to have a diversified portfolio of stocks (especially if your positions are small) due to quarterly $2.14 charge per counter. Having 10 stocks = $85.60 per annum. I understand these are bank fees and CPF may not be able to influence them, but one can try.
Limit amount you can use to buy Unit Trusts, ILPs, Annuities and Endowments. Having no limits on those products make no sense when most of these products underperform Index funds. It also encourages predatory financial advisors to recklessly sell these products to customers as “you can’t touch this money anyway”
1 more comments
Goh Kah Kiat
25 Apr 2019
Https://www.cpf.gov.sg/Assets/members/Documents/CPFISInvestmentProducts.pdf This document seems to contradict the point on annuities and endowments. Anyway, I get that stocks are risky to the uninitiated. Which is why I understand why there are limits on stocks and I'm not arguing for a lift on the limit. I'm more arguing from the point of view that ILPs and Unit Trusts should have limits too as they are risky products (they are essentially equities too if you buy a equity fund). Just because there are so-called experts managing those products doesn't make them risk free.
Hariz Arthur Maloy
25 Apr 2019
A long time ago you could buy endowment and annuities. Not anymore for a number of years now. Currently you have to leave behind 20k in OA and 40k in SA before investing. I would agree to not allow SA investment but only OA. And yes they aren't risk free, but they are less risky.
Limits on property purchase. Higher Medisave withdrawal limits for insurance and bills across all ages.
Other pension schemes around the world are sometimes only for the social security or the CPF Life part. Not many use our 3 account system for housing needs, retirement needs, and medical needs.
I think that our CPF needs to be more segregated from each other. People don't understand that Medisave amount cannot take out, and say their CPF got a lot of money when it's all just Medisave. Quite a lot of lack of education.
And I can't wait for RSS to be phased out permanently and for everyone to be on CPF life. Less headache as well.
Definitely check out Japan's iDeco system. It allows people to voluntarily contribute to a separate ...
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