One can imagine the Temasick and GeeAyeSee have lost so much money and the Familee's greed has reached such a level that they have the gall to CUT the interest rate for the Special and Medisave Accounts. These are the same CCB fcukers who claim 18% pa return from using the peasants' the CPF money and are now engaging in creative accounting to cheat the peasants of ALL of their entire blood and coffin money. Nothing short of a revolution can save Sporns now!
======
SINGAPORE : Interest rates for the CPF Special, Medisave and Retirement Accounts will be re-pegged to an appropriate long-term bond rate.
Manpower Minister Ng Eng Hen said more details on this will be worked out and announced next month.
He said the new rates will be lower initially than the current rate of 4 percent but it should do better than 4 percent over time.
But as the rates will be pegged to the market, fluctuations can be expected.
=> Why not peg it to the S & P return, which is at 11.9% pa, CCB Bargain Hen?
Dr Ng was speaking at a news conference to explain the initiatives announced by Prime Minister Lee Hsien Loong at the National Day Rally.
Giving more details on the compulsory annuities, Dr Ng said only part of the minimum sum from the CPF will be set aside for it.
A major portion of the minimum sum will still be for the members to withdraw when they reach the draw-down age.
Dr Ng said this is to ensure that members are covered even after the age of 85.
He said the aim is to achieve a subsistence payout first - of possibly between S$250 and S$300 per month.
=> Worse than NS pay! WTF! $250 in x years = $2.50 in today's value!
Private sector economists said the rates could be pegged to government-issued bonds.
"If we peg it to a SGS bond, it will definitely be below the target 4 percent rate. Our thoughts are that, they might be looking at a bond issued by say, Temasek, which has typically in previous years averaged returns more than 4 percent. So we can probably enjoy higher returns in that way," said Alvin Liew, economist at UOB Treasury Research.
Singapore Government Bonds are currently yielding between a modest 3 percent and 4 percent, prompting some analysts to suggest a benchmark that included a guaranteed portion.
Some economists suggested that the government could provide a fixed 1-2 percent base, plus a variable component tied to the Singapore Government Bond yield.
As the rates would be pegged to the market, fluctuations in returns could be expected.
"It is conceivable that CPF members can expect, in the long term, maybe more than 4 percent per annum. On the risk side, if these new rates are variable and it falls below 4 percent, that is a worry for CPF members," said Roy Varghese, Director of Financial Planning, IPAC.
The changes to the CPF interest rates will be effective in 2008.
They will cost the government S$700 million a year, initially.
Meanwhile, the government also wants to provide an "extreme longevity protection" for citizens by making annuities compulsory for those below 50 years old.
Said Dr Ng: "We are basically looking at compulsory annuities to protect members from outliving their retirement savings. Let me first say that we'll consult widely. We do not intend to, when we start this scheme, to put the major proportion of your minimum sum into annuities. That's the first thing that needs to be said.
"In fact, a smaller proportion of your minimum sum will be put into annuities, so the major portion of your minimum sum will still be drawn out, drawn down by ...[Message truncated] |
