I refer to "CPF Can No Longer Be Used to Pay HDB Flat After You Turn 55?".
Buying a flat is easy and is a breeze for many couples. However, the tail-end when you reach your 40s, lost your job and have health problems may drive you to want to kill yourself in Bedok Reservoir.
Here are some pitfalls that everyone should note.
1) Retirement Account will 'automatically' be created when you turn 55.
If you fail to meet your Minimum Sum of $148,000, all the money from Ordinary Account and Special Account will be transferred to Retirement Account.
Even if you are working at age 55, every cent will go to Retirement Account and not your Ordinary Account.
2) If you fail to hit Minimum Sum and you wish to sell your flat after 55, cash component will be returned to CPF to meet your Minimum Sum.
3) All the booby traps has been made known on HDB. Click on http://www.hdb.gov.sg/fi10/fi10326p.nsf/w/AheadBefore55UnderstandtheCPFRules?OpenDocument
This episode illustrates why it's so important to have good calibre opposition candidates to block these unfriendly policies that hurt us. Having 10 opposition candidates to oppose and ask questions in Parliament just isn't enough.
We definitely need more to have more voting bloc power in GE2016 and to pry open their account books in the name of good corporate governance.
CJ
TRS Contributor