Friday, January 9, 2015

Screwed For Life

CPF LIFE is supposed to be an annuity scheme that provides members with an income for life from their drawdown age (DDA) or when they join the scheme, whichever is later. In any commercial annuity offering, after the principal sums and schedule are mutually agreed upon and established, the drawdown amount is determined and fixed. As good as written in stone.

That's what Vikram Nair, a politician, lawyer and member of the country's governing People's Action Party, was alluding to. In his example, the monthly income of $1,270 is fixed for life.

Now look at the fine print on the CPF Life website:
"The payout range is based on interest rates of between 3.75% and 4.25% and does not represent the lower and upper limits of the payout. The monthly payout may be adjusted every year to take into account factors such as CPF interest and mortality experience."

In other words, the people in charge can change their minds, anytime, anyhow. They are telling you in black and white they can adjust the payouts - supposedly based on CPF interest and mortality experience - and damn if they bother about the actuarial science behind the computation, the discipline that applies mathematical and statistical methods to assess risk in insurance, finance and other industries and professions. Actuaries are professionals who are qualified in this field through education and experience. Obviously professionals are not in charge, just the usual set of clowns determined to rip off a docile populace. The Fernvale Lea customers won't be the only ones to start paying closer scrutiny to the fineprint.

Okay, Nair, we need you to explain CPF Life again.


  1. I will be extremely lucky if I can get $500 a month when I'm 65 years old.

  2. The fine print and then some. Take a blatant expressly stated, but glossed over in their presentation to the gullible public - that we need an elected President to protect you from a misbehaving government. It turns out that he may be overruled by a 3/4 majority in Parliament. Tricks of the master of illusion.

  3. Changing goalposts or cutting payments may still be palatable, you forget that the law allows the CPF Board to stop CPFLife payments unless the Lifelong Income Fund is solvent.
    Looks like they've got all their axxholes legally protected if they screwed up

  4. this is a good one. relevant topic. pertinent points raised.

    it is unthinkable, the cpf life payment cannot be more certain. UK state pension even have this provision that the payment is adjusted to take into account inflation, which is uncertain by itself.

    PAP govt cannot even do that or didn't even want to do that and want to pass the risk back to locals.

    fuck PAP. fuck them

  5. Another way of looking at it, if most people start working at 20+, why aren't they starting the CPF Life scheme from the moment one contributes to CPF ? Like most life insurance schemes, most will benefit if one starts early.

    But over here it is the PAP Govt that benefits right until one is dead. With all those kind of restrictions, they rather make sure most CPF members will be able to afford the coffin and have something left for funeral expenses.

    Maybe they will allow some foreign S$2 company to start a highly profitable coffin business here under the guise of tendering for religious activities since everyone will need a coffin irrespective of whether it is a Chinese or Hindu temple, a Christian church or a Muslim mosque.

    1. Maybe that is why they allow the columbarium to tender for the land for religious purposes because there will be plenty of coffin money left from the dying CPF members ?

      Just wonder whether it is another of those S$2 AIM company when HDB, URA & PAP MP so strongly defends their decision to allow a private company to tender for land meant for religious purposes ?

    2. They cannot start CPF LIFE earlier because the HDB has first bite of your CPF.

      After paying for 30 years, then CPF LIFE comes into view.... note: view only... payout comes much later... when you are 90 years old. From 65 to 90, payouts comes from your Retirement Account.. which is your own money that you saved.

      First milestone to clear: 65
      Second milestone :90

      Mr Anadan passed on at 67... he enjoyed 2 years from Draw Down Age.. sure you can make it past 65?

    3. It is not a $2 company. The private company has Goh Chok Tong's son and Prime Minister's Brother-in-law as directors. It surely should be a reputable company, not any fly by night company. Go do some research

    4. "It surely should be a reputable company, not any fly by night company."

      "SHOULD BE reputable...."

      I wonder if there SHOULD BE any doubt?

    5. Some info about the company and directors here

  6. He is one of the many freelance ministers who didn't bother to read his master's fine print before talking loudly in front of the media. Such expensive fly by night ministers, who can even represent the people, talk for the sake of talking is a waste of viewers' time.

  7. many did not read the fine prints and just TRUSTED the MIWs

  8. No wonder the old fart called us dafts. It's not only the fine print you don't read; you also don't read what is not written there! Moreover you must not only hear what is said, but also what is not said, because these MPs will always side with the cheng hu.

    They have propaganda experts helping them to twist things around, so don't accept everything they offer you or say, at face value. This is what their expert said:
    "If people are told the truth every day for seven years and then for operational reasons are told a lie on the first day of the eighth year, people will believe it."

    But here is one advice from the longkang Minister that I must admit has some truth, when making a major decision:
    "If you are submitting yourself for circumcision, be very careful that it doesn’t become an amputation!" (replace "circumsion" with "decision")
    He was actually insinuating how he makes good decisions, that's why he still has his little brother. So be careful when making a decision, if you want to keep "it".

  9. With Caveat Emptor, consumers are always at disadvantage. Other than fine prints, there will be ' subject to changes', 'additional charges may apply', sub clauses that may complicate main clauses, 'conditions apply' and 'subject to condions' etc.
    How many consumers are able to understand the legal and technical terms and jargons in any contract?

    Dare I say that few browse the Documents when purchasing a 'Chenghu Chu(HDB Flat in Hokkien/TeochewDialects), not to mention peruse the Agreement.
    All Singaporeans trust the Government(Chenghu) is not an overstatement. It is as good as (blind) natural faith in the Rulers. There was never the Slightest Doubt on their Integrity. They are very sure tgat they will not be exploited and or unduely obligated.

    2015 very unfortunately has to start with much negative baggages from the previous years. Now that Pinoy Ello and Fernvale Columbarium are added haunts to Singaporeans, the Faith and Trust on the Rulers should thin down much and the Chasm between rhem shall get wider. This will likely change the Political Landscape and we could see more intellectuals critical of the Regime.

    No Tsunami to worry about but, do brace for some stormy weathers.