THERE have been many comments about the inflexibility, necessity and transparency of the Central Provident Fund (CPF).

However, the scheme is beneficial, despite the perceived disadvantages.

If the CPF scheme is done away with, then we must be really disciplined in order to save enough for the down payment of our property. All the grants related to the CPF would also be gone.

Some ask why CPF pays only a 2.5 per cent to 4 per cent return on our money. They should also ask why banks, which also take our savings and invest them for a higher return, give us a meagre 0.1 per cent.

The reason the increase in the Minimum Sum is higher than the prevailing inflation rate is that the Minimum Sum is locked in at a particular point in time.

Retirement does not last just one year; it typically lasts 10 to 25 years. Since everyone is living longer, we should prepare a bit more.

We use CPF schemes when they benefit us and raise a ruckus when they don’t.

Those who wish to withdraw all the money in their CPF accounts when they turn 55 should be made to declare that they will not ask the Government for assistance if they run out of money.

Freedom comes with a price.

We talk of the Government not listening, but the freedom to give feedback and criticism does not include making accusations that cannot be substantiated with facts.

Mervyn Song Chee Khin

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