Of retiring and restrictions

So, if you live in Singapore, you would know that the government is changing its policy on the CPF withdrawal yet again. The arguments put forth by PM Lee was nothing new - longer life expectancy, smaller family size to care for the elderly, bigger population of older folks, blah blah yawn.

To those not familiar, basically, when you turn 55, you get to withdraw half of what is in your CPF account - although what they really mean is that you could withdraw the surplus after the Minimum Sum has been set aside.

The Minimum Sum started at $60K, it is now $99,600 and by 2018, this will be raised to $120K. By the time I retire, who knows what the Sum would be like. And, the Minimum Sum draw-down age will be revised from 62 to 63 and then to 65 by 2018, although I won't be surprised this might be changed again five to 10 years down the road.

The Minimum Sum will be paid to the CPF member in monthly instalments through a now-being-proposed compulsory annuity programme, with an aim of stretching it to cover 20 years, since the government thinks the average life expectancy will be 80 years old.

I appreciate the intent of wanting to look after the elderly and ensuring no one becomes penniless in their golden years. But you know, last I checked, that money in that account is mine. And if at age 36, I am making good financial progress with investments, then at age 55, I'd like to think I would still remember to be prudent and wise with my money.

The bottom line is, I know how to manage my finances and I am doing a pretty darn good job at it too. In all honesty, I don't really need the government to manage my finances for me. I am irked that the government is leaving me no choice on when I access my CPF money, thereby affecting how I use them. Even though I am not totally dependent on my CPF monies when I retire, I am resentful that there are so many restrictions to get my hands on *my* money; I mean, the damn goal posts keep moving!

I have a vision of what I want to do when I retire. God willing, I want to do something meaningful - start a literacy programme for underprivileged kids, help out at orphanages and pursue other interests that I am unable to indulge in now, when I'm busy building my retirement nest and saving for the kids' university education. Or if God wills that I become incapacitated, I would have enough money to have certain level of access to health care. And if either the husband or I should die, we would leave a small estate to the surviving spouse and our kids.

But come to think of it, the husband and I are of the view that Singapore isn't a place you retire at. The cost of living is too high, health care is not cheap and there's little to do here. So perhaps, I should stop whining and being aggro about this all since I won't be here when it's time for me to retire anyways. And that's a sure way of getting all my money when I make that decision :)