The amount of abused CPF has increased exponentially.
To put this into perspective:
If this had happened in the private sector, alarm bells would have gone off. But why not at GIC? After all, only about 3% in interest has contributed to the increase in CPF balance with the bulk of the increase coming from members’ contributions.
Observe CPF Board closely and members will notice that every action taken by the CPF Board has only one objective: retain more members’ CPF through legislation or entice members to top up CPF with cash.
PAP has pulled out all the stops to increase CPF balance by even placing online ads. Which government needs to advertise their pension scheme?
CPF members should demand transparency from PAP. Clearly, they are not even trying to resolve CPF issues. If they had, the low CPF interest rates would have been raised, ie not the 1% increase on a miserable $X amount. Alternatively, 63% of CPF channeled into housing would have been drastically reduced.
The humongous amounts retained in CPF will exceed $30 billion this year. In the first half of the year, members’ balance increased by a record $17 billion.
In a few years from now, annual CPF balance increase will exceed $50 billion and rise in tandem with population increase.
Hmm …. not a Ponzi scheme?