1st Channel X video with explainations of some key terms and commentary
Launch of Channel XHere is some background explainations and commentary for those who are interested.
Gross Domestic Product (GDP) is the gross value of goods and services that a nation produces.
Central Provident Fund (CPF) is the compulsory saving scheme that the Spore govt imposed on us. Currently 33% of our income (13% from employers and 20% from employee) is channelled into it. There is 2 types of accounts in CPF , the ordinary account and the special account.
For the ordinary acc, the govt gave a derisory 2.5% interest rate for the $ we put there, regardless what the inflation rate inflation rate is. We can use the $ in the ordinary to buy HDB flats, pay for children educational fee and even invest in some investment schemes. The investment schemes has already been declared a flop by the govt.
For the special acc, the govt gave a pitiful 4% interest rate, again regardless of inflation rate, for the $ we put there. We cannot touch the $ in the special acc until we reach either 55 or 62 or when we migrate out of Singapore.
Can u imagine having a fix deposit acc that only pay you a max 4% interest rate for locking your $ up for over 30 yrs?
That is exactly what CPF is doing to us.
By forcing us to put so much of our $ into CPF while giving us derisory returns, they are indirectly taxing our income.
Don’t you think there is something wrong, if we cannot afford a decent flat and decent retirement after saving 33% of income lifetime income?
As if it isn’t enough, the govt is imposing a new minimum sum scheme and delaying CPF withdrawal age.
Sometimes I wonder if I will live to see my CPF $ given back to me.
Channel X said that although HK rank just 3 countries above us in term of standard of living, but we can only use 80% of our income to pay for our expenses. This means although our standard of living is high we have less $ to pay for it due to CPF.
I hope my explaination is of use.
Cheers
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