After legislating CPF as government reserves, CPF retirement savings no longer belong to members: they belong to the government.
This is the reason why CPF members have no recourse when PAP creams off a huge portion of CPF returns earned by GIC through such an unethical practice.
For years, GIC has already confirmed the ownership of CPF monies: they are part of “Government’s financial assets“.
CPF members are not interested in enhancing the international purchasing power of our retirement savings; we merely want our CPF savings to earn returns that beat the high PAP-created domestic inflation to enjoy a decent retirement.
Commingling with state reserves encourages abuse and also conceals the real performance of GIC. CPF must be managed separately.
In every GIC report, there has never been any mention of working in CPF members’ interests despite GIC managing $360 billion in CPF funds. This amount exceeds state reserves under GIC’s management.
Assuming GIC earns 6% long-term return, a CPF member with $100,000 OA balance earning 2.5% return loses $3500 annually/$35000 over a decade, excluding compound interest.
Together with the inability of our imaginary assets – HDB flats – to perpetually increase in price as promised by PAP ministers,* an increasing number of Singaporeans are likely to wake up to a retirement nightmare.
HDB flats do not belong to buyers as there’s only one landlord: HDB.
All HDB flats will see a steady price decline after year X, with or without upgrading.
They are worth $ZERO at the end of the lease.