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One netizen took to social media commenting that they thought CPF life was scheme, besides that it had one flaw: the cost is mounted by default regardless of inflation.
The netizen, who goes by the title of Wong Boon Hong on social media, wrote: “This implies for individuals who reside longer, they are going to begin to discover that their allowance is shrinking yearly on account of inflation”.
“Even for these on the extra life like escalating plan of two% per annual, it could not catch up when inflation is excessive”, Mr Wong added. He additionally stated that the escalating plan places these unable to reside previous 90 at a drawback, as their beginning allowance is far decrease than the mounted allowance. The allowance for these on the escalating plan solely will increase after they flip 85.
Mr Wong opined that “The foundation explanation for our asset wealthy however money poor scenario is principally on account of our flawed unsustainable housing insurance policies, the place our retirement funds are compromised for our housing want, that has been turned the wrong way up as an funding as an alternative”. He shared that he thought excessive inflation didn’t influence younger employees as a lot as older ones, as wages will catch as much as them, and they might nonetheless have a few years to save lots of up.
He added: “However for the seniors, they not have ample years to catch up, whereas they see their years of saving and retirement fund shrinking yearly.
Worse for individuals who have retired and not have any earnings to catch up”.
Alongside along with his feedback, Mr Wong shared a picture of the next Straits Occasions article: ‘Rising meals, vitality costs drive S’pore core inflation to 13-year excessive’.
The publish Netizen feedback that CPF life “has a serious flaw, because the cost is mounted by default regardless of the inflation” appeared first on The Unbiased Singapore Information – Newest Breaking Information
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