Why our CPF contribution employee is more than employer?
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Last few days i went to mainland China for vacation,i have abit of chit chat with my mum's friends.They told me that now China also got CPF system,but they only need to contribute 5% of their salary into the CPF while employer need to contribute 10% for them.I have been to Malaysia before,from what i have known,Malaysia workers also contribute lesser CPF rate than their employers in their country.
So my question is,why Singapore so special,need the workers to contribute 20% of the CPF while the employer only contribue 13%?Is our government so "desperate" of money that they need to lock up so much of our money in the CPF?Will our workers CPF contribution be lesser in future?Feel free to post ur views. -
Well the fact is that the govt is afraid that when u are old, u don't have money to take care of yourself so they make u save
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To expect the Employer to pay more into a worker's CPF, will only increase the cost of operation for the Employer. It will be like "killing the goose that lay the golden egg".
Meanwhile, the worker will still need to pay at least 20 percent into a CPF fund that is shrinking in size due to a SMALLER CONTRIBUTING POPULATION - due to the shrinking growth rate of the Singapore Population that is worsening with each year.
As was mentioned before, the population growth rate was an alarming 3 to 4 percent during the 1940s, 1950s, and into the 1960s.
This resulted in the very successful Family Planning Programmes that were created in different aspects - social and financially punitive programs - to slow down the growth rate.
This resulted in the present situation, where in the years 2000 and through 2020, the 1940s and 1950s babies will be retiring, and soon will be drawing on their CPF savings.
Meanwhile the smaller population growth of 1960s, 1970s, and 1980s are just into their early age of 40s, 30s, and 20s; and will have to provide a larger CPF input to allow those from 1940s and 1950s to retire.
For CPF to be successful, the number of retiring CPF Account Holders must always be smaller, and the number of contributing CPF Account Holders must be more at the turn of each year - like in a pyramid, the base is always bigger than the apex at the top.
The true picture of CPF today, is that it is like an inverted pyramid, where the numbers of retiring CPF Account Holders are bigger, and the contributing younger CPF Account Holders are lesser - like an up-side-down pyramid, with the big base of retiring people at the top and the younger contributing numbers of new entrants in Kuala Lumpur being the smaller apex tip being at the bottom.
We have no clue how CPF Board invest the CPF funds contributed by Singaporean Workers, and what is the rate of return, and how much profit and losses have been incurred by the CPF Board.
The actions from the Government over the last 10 years can provide an insight into the situation at the CPF.
In the early 1990s, CPF allowed the various account holders to control how the CPF money is to be invested. Ten years later, in 2002 or 2003, it resulted in a complete turn around of policies, CPF Account Holders will no longer be allowed to use CPF money to invest in any CPF approved stocks, and more restrictions are made in the use of CPF for home purchases, and CPF levies on return of profits made from CPF approved investments.
While it has been constantly denied that the GIC do not manage the investment funds from the CPF Board, how do we know who is managing such funds ?
If the financial experts at Temasek Holdings can produce results of losses in some years, can those at the CPF Board do better ? -
Wow Atobe,ur analyse is like a professor leh!
But then again,having a smaller CPF contributing also not our fault mah,who call the government so "kiasu" go n implement what "Family Planning Scheme" in the 80's.Now Chinese population drop like hell then the government scare already,ask ppl to born more.Call us to born less also them,call us to born more also them,god also them,ghost also them,really headache sia! -
Unrelated, but I would like to highlight that some senior citizens are quite irresponsible with their CPF money after retirement, going to Batam and getting cheated of their CPF by some hooker. Afterwards, these ah gongs go back to SG, wife leave them, children also oso leave them, no more CPF, so how? starve to death lor
With these ppl... hiaz... no wonder SG is going down the drain.
I am oso not exactly brimming with enthusiasm at the prospect of having to pay more CPF for these old ppl when ageing population kicks in. One thing I blame PAP for is this; and especially the bloody Singapore Family Planning and Population Board. Gd example of bad PAP policy soming back to bite them. Sadly, the one who will feel it is us
Old people are a liability to society. Should be repackaged into Solyent Green and exported to earn money -
The projected amount of money to retire on in 30 years from now is approximately $1m, do u think your monthly 20% and the govt's 13% will get u that amount in say the average 30 years? I was hoping that the govt mightl minus more from our pay because where can u get 3% annual interest nowadays with literally 0 risk?