This is a continuation of the previous post.
Let's recap, our CPF (central provident fund aka Singapore's pension system) has four issues:
1. The equal contribution rate (employer vs employee) was violated.
Let's recap, our CPF (central provident fund aka Singapore's pension system) has four issues:
1. The equal contribution rate (employer vs employee) was violated.
2. The minimum sum was a total disaster.
3. Interest was imposed on fund withdrawal.
4. The interest rates are compared to returns of our sovereign wealth funds.
We discussed issue #1. The solution is to bring back the equal contribution policy. Since employers will cry foul if they are asked to raise their contribution to 20%. Perhaps it is much easier to drop employee contribution to match the current 15% or so. ie we see more take home pay! This also helps in a way since less of our salaries will now be locked away.
Issue #2 is the most hated policy. The dreadful minimum sum. When the amount is some crazy number like $160,000 and climbing, ...
...We discussed issue #1. The solution is to bring back the equal contribution policy. Since employers will cry foul if they are asked to raise their contribution to 20%. Perhaps it is much easier to drop employee contribution to match the current 15% or so. ie we see more take home pay! This also helps in a way since less of our salaries will now be locked away.
Issue #2 is the most hated policy. The dreadful minimum sum. When the amount is some crazy number like $160,000 and climbing, ...
