The CPF Life scam and why PAP should return our CPF

Roy was right about “The Dirty CPF-HDB Scheme To Trick Singaporeans“.

I will not touch on the HDB part but only state the obvious about our CPF.

Is CPF money, or not money?

CPF savings used to fund housing becomes invisible money at age 55. A member who has used $166,000, or even much more, to pay for his HDB flat is still required to maintain a ‘minimum sum’ of $166,000 in CPF balance.

(The issue of ‘asset rich, cash poor’ should not be addressed with tweaks. Instead, allocation rates should be changed.)

So, my CPF used for housing suddenly becomes no pakai at 55?

Used more than minimum sum to pay for housing but still need to maintain half the amount?

The government should not treat CPF members as idiots. If I have used $250,000 in CPF to pay for my long-term HDB lease, this means I have saved $250,000 for retirement. How I want to manage my retirement is basically my business.

The PAP could provide options such as downgrading to a smaller unit/reverse mortgage, etc. There is no need to legislate half of the minimum sum amount to be managed by CPF Board until I kick the bucket.

According to PAP’s logic, CPF used for housing is not a drawdown

DPM Tharman once tried to pull a fast one 😉 and provided this explanation on the use of past reserves:

According to Tharman, tapping past reserves in this way is “in essence a conversion of past reserves from one form (financial assets) to another (state land), rather than a drawdown of reserves”.

Question: Isn’t tapping CPF to pay for housing “in essence a conversion of CPF from one form (financial assets) to another (property), rather than a drawdown of CPF”?

Since our CPF has not been used but merely converted, then why do we still need an additional $166,000 in the minimum sum for CPF Board to manage?

CPF Board becomes the only insurance company to profit from members?

If CPF members need to plan for our retirement, the government has to allow other insurance companies to offer alternative plans. The lack of competition allows the government to direct our retirement savings into CPF Life and massive profits into its coffers.

Government should provide pension after profiting from CPF returns for decades

CPF members should not even have to set aside any minimum sum because the government has:
– confiscated about half of the returns from CPF investments for decades to
– supplement government budget.

As such, it would be right for all CPF members to be given a pension. This is not a government handout but simply returning what has been legally stolen. 😦


The CPF Life scheme is daylight robbery, a scam right under our eyes. PAP propaganda has worked so well that even wealthier members – supposedly well educated – have been easily tricked. (next post)

Since most members did not draw down on our CPF but merely converted retirement savings to physical assets, the legislated minimum sum at 55 should not be applicable to these members.

CPF members should be educated to plan for retirement, and not treated as idiots who need the government to hang on to our money till our last breath.

Insurance companies should be allowed to compete instead of enforcing a one-size-fits-all plan to channel billions in CPF into GIC.

All said, it would be better for PAP to just return our money.

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