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DPM Tharman: Young Singaporeans will have ‘enough’ CPF savings by ‘retirement’

Posted by temasektimes on September 19, 2012

Singaporeans need not fret over their golden years because they will have ‘adequate’ savings in their Central Provident Fund (CPF) accounts by the time they ‘retire’, if they are able to, declared Deputy Prime Minister Tharman Shanmugaratnam.

DPM Tharman reached his conclusion after reading an ‘independent’ study done by the Singapore Manpower Ministry which estimates a worker’s income replacement rate (IRR) using the accumulated CPF.

The study found that the median male earner who enters workforce today will be able to achieve an IRR of over 70 per cent through his CPF savings.

For the female median earner, the equivalent IRR is 63 per cent.

However, DPM Tharman conveniently omitted the fact that the bulk of Singaporeans’ CPF savings will be tied up in mortgage loans for their over-priced HDB flats.

Furthermore, their CPF savings are ‘untouchable’ – they will not be allowed to withdraw their entire CPF savings and need to keep a Minimum Sum of $140,000 or more in the ordinary account.

Though Singapore is now the richest country in the world by GDP per capita income and Singaporeans have the highest saving rates, most Singaporeans have to slog day in and out like dogs till they drop dead and die like the 80 year old dishwasher who was found dead in the toilet of a coffeeshop where she is working lately.


58 Responses to “DPM Tharman: Young Singaporeans will have ‘enough’ CPF savings by ‘retirement’”

  1. what a joke said

    May be he forgot to say “provided you dun buy any HDB flat in your life time”?

  2. Angry Citizen said

    What bullshit is this? In the year when I retired what will be the cost of living then?
    Do not forget inflation rate (5.3% In Jun 2012) is higher than CPF interest rate (2.5%).

    • Naivety said

      Aiyoh, you can’t him lah as he does not know simple accounting!

    • AngrySingaporean said

      Don’t forget those greedy blood suckers keep upping minimum sum of CPF. This botak ah neh has no feeling, he said “5% inflation will not be felt by middle income…”

      • Naivety said

        Allo fellow Sinkaporeans,

        Don’t u know that all these Ministers are being paid multi million dollars in salaries per annum just to talk cock & sing song only as well as making cheap sweeping statements?

        Just make absolutely sure that he will be voted out if he is standing in your area/GRC for election come GE2016 then!!!

      • AngrySingaporean said

        You can absolutely count on me. I DON’T VOTE FOR THE PIGS!!!

  3. JeoJeo said

    Is this a prophecy? a hope? an expectation? or a concrete plan in progress?

  4. Jaded said

    provided you never get replaced by a cheaper foreign worker?

  5. Daft Peasant said

    of course will be enough lah……. either you don buy hdb for the rest of your life, or you mortage the flat back to hdb when you old…..provided flat fully paid for lah……

  6. KillFT said

    WTF is this cheebye Indian saying? Does he mean his own PAP fuckers? Normal? MY FUCKING ASS LAH. THARMAN BURN IN HELL.

  7. Piratetoon said

    You must be a Daft to believe in this.

  8. Native Citizen said

    Nonsense, there is no retirement in singapore.

  9. ngpy said

    Hope the DPM Minister knows what he is talking about. No guessing game please, please have substantial calculations to support claims.

  10. JG said

    When he refers to those wonderful IRR numbers, what he is basically saying is that INCLUDING THE VALUE OF YOUR PROPERTY, you will make a good return on your investment.

    But he didn’t take into account the loan interest taken to purchase the property.

    And he forgot that most Singaporeans stay in the property they own. Right … you’re supposed to downgrade to a elderly flat when old and sell your flat away!!! So that the gain can be used to support your retirement so that you do not need Govt handouts. But many Singaporeans are not ready to do that.

  11. Duncan said

    Rubbish. I can’t even withdraw my CPF $$$ . Botak must be talking shits again. $1000.00 can buy a HDB flat ? My ass.

  12. Samuel said

    I’m so SAD that MOST of our MPs & PM are talking with thinking & understanding the people. I rather he shut up than said something is only half the truth. For people like himself – can retire comfortably. Unfortunately most of us is struggling to stay alive. Yr article clearly stated that when we take into consideration – housing, mini sum, etc – what we are left with make us feel like beggars.
    PAP said teach less… so teachers are asking the primary schoolers…. u’ve tuition or not… (direct quote fm certain teachers I’ve met) . Examination still requires the same standard but schools are not teaching – so we’ve to send our kids for tuition so that they can catch up.

    Is time PAP acknowledge that something is very wrong with the policies they’ve implemented. Still don’t want to change than we the citizen of Singapore will have to change them for the benefit of all our health.

  13. hun? said

    huh? dont talk cock without showing the numbers to back it up.

  14. teo cheap buy said

    Another tc king?

  15. richard said

    He (shamu) forgot we all singaporean are rich,we live in the park like him free no loan and tax free, free meal, free transport,free medical,free education ,so every singaporean cash rich in CPF.But lock in cannot payout when u reach 55 years old. Ha Ha Ha .Thks for our good gov.Why even 80 years old grandma still had to work until drop dead.Because she left nothing in the CPF lor.Not every singaporean collect million dollars like him.

  16. Realist said

    This sly old fox meant you can retire in Papua New Guinea after selling your HDB flat.
    He did not say you can retire in Spore.

  17. unknown said

    Mr DPM Tharman! Are you kidding us???? After buying HDB flat, we have nearly NOTHING in our CPF savings??? What kind of calculation you come out to derive that the younger generations like us WILL HAVE ENOUGH CPF in our savings????
    You are only sweeping problems under the carpet and telling lies to deny the facts???

    • AngrySingaporean said

      HDB going up and up non-stop, at this rate when one retires and sells his hdb, he’ll have a million $ nest egg. So, even without cpf also never mind.

  18. Wonder whether the ‘independent’ study done by the Singapore Manpower Ministry can be publised for all to read?

  19. Singaporean said

    maybe for you, DPM Tharman. definitely not us

  20. Daniel said

    Sure, of course, with 140K min cap, .. and pushing later our retirement age,…. oh not forgetting the 120% CPF cap when buying HDB….. retirement is far reaching or never come at all… because they jump to end their life somewhere I guess…. Good luck to Singaporean.

  21. AngrySingaporean said

    If I’m earning your type of S$$millions salary, I won’t have any problem when I retire earlier, botak.

  22. Singapore Cock said


  23. fpc said

    IRR of what pay – starting pay that is 1000? or 2000? that is fuckingly amount in 30 yrs time.

  24. broked said

    i make above 7k and already 60 years old. still paying housing loan, where got money to use, stuck in retirement account but not much, will get about 2 to 3 hundred a month when i reach 64 years old. botak talk cock all the time.

  25. fpc said

    it is a tacit admission that your salary will stay low… because CPF life gives 1000 when you are 65. implying your last drawn pay to be 1500 using tharman’s number.

  26. Pink Panty Loong said

    How come all these million-dollars Ministers talk as if they are high on drugs or something? Totally oblivious and clueless of the reality!!!

  27. oute said

    which year are they talking about…

  28. seah said

    for a 4 room flat that cost 400 hundred over thousand total how much will i pay with 3o years loan,interest add in will i need to pay around 1 million?If this is the sum i need to work for my retirement needs after 60 years old.must work until up the lorry

  29. Pai Sei said

    Aiyo…all these r wayang n bullshit lor.

  30. Ben said

    Provided we stay longgang near my HDB flat. No house for me , I can retire with my CPF money .or HDB is free for us to stay.

  31. 5vvaper said

    LJ la. Cow can fly pig can climb tree.

    Does the pundek think b4 talking anot

  32. angela foo said

    It is interesting that there are two absolutely different version one from the minister helped by two professors from the uni and another professor giving the other view. For transparency it will be good to publish the actual working of the IRR done by the govt and that will prove beyond a doubt that the young pple have enough to retire. This is of utmost important as the govt kept a large portion of the savings over the 30-40 years and giving only 2.5% pa which is below the inflationarey level and plus with all the central banks printing money gloabally inflation will rise faster so how can the govt be giving only 2.5% for the savings should not it be increased based on their IRR studies as the present value of the savings will be eroded by inflation.

    • mahbok tan said

      I am very sorry , but they will not be publishing any of the findings for ordinary people like us…..for people like us we are suppose to listen and follow lor…..!!!
      Poor SGporean……we ask for it…and we are getting it.
      I am very ANGRY with every new issues being highlighted in the news daily but what can we do ????
      If singaporeans are working and our stomach are full we will be happy and less complain but nowadays its the reverse and yet our MPs and PM are in Alice in wonderland…..!!!!

    • Daft Peasant said

      so wat the annual interest increase to 25%…….you can’t even draw out the money when you reach retirement age!!

      Its the biggest scam in the universe!!

      • Naivety said

        Obviously lah as both Temasek Holdings & GIC need these monies to fund their reckless investments & speculation purpose what!!!

        If every Tom, Dick & Harry are allowed to withdraw their CPF Monies upon their retirement in 1 whole lump sum basis who is then going to fund both Temasek & GIC for their investment & speculation venture…this is no brainer?

  33. Singapuraboi said

    Hah! If we can only touch the money. They keeep introducing all kinds of regulations to prevent you from cashing out.

    • Naivety said

      Aiyah, you know what both Temasek Holdings & GIC need our CPF Monies to fund their reckless investments & speculation purpose if not how are they going to obtain their sources of fund then?

  34. Litmus Test said

    Actually. the litmus test is what the actual times come and the numbers of vote support by the time come, people retire comfortably and happy or not, will be reflected on the voting results. Some will be around to witness it but some not.

  35. Karen said

    Tharman really needs to CATCH UP with reality instead of just mouthing off with the usual PAP propaganda and bullshit.

  36. Robin hood said

    The tongue has no bone. So it just wags and wags irregardless of the mind being engaged or not. Many young Singaporeans don’t get a month what the ministers get in HALF a DAY. How to keep money for old age???

  37. hachoo said

    Ha Ha Ha….OOh OOh OOh… I am not sure whether to laugh or to cry…is he kidding ??????????????

    Just the other day , my friend just lamented that he will be reacing 55 soon and he can’t seem to find any solace about it. He said ” after working for more than 30 years, he can’t see his CPF because the goal post is always shifting . the minimum withdrawig years and the minimum withdrawal amount…he exclaimed ” what are all these years working for??????? my own money yet I can’t seem to be able to use it when I needed it most ”

    Minister Tharman…..please please please please please…..don’t crack such joke !!!! It ain’t funny at all !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  38. solaris8899 said

    i don’t believe to his speaks nowadays, full of nonsense, irrelevant facts.

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