CPF was put up by the British and extended by PAP after it came into power. The initial intent of CPF was good and win-win situation for both the people and the state. For a young city state with little resources, CPF has provided the necessary CHEAP funds (as compared to borrowing from other sources) for the government to embark on various infrastructure projects.
It is also a good scheme for a general public who were not highly educated and lack the understanding of proper financial planning. The traditional thinking of raising the children as the "investment" of securing retirement financing was deeply rooted.
But are we better educated in financial planning now? Apparently not so. In fact, the government is guilty of misleading the people into BAD FINANCIAL management when it tries to sell its Highly PRICED HDB flats as "Affordable" by putting up 30 years mortgage plan. Of course, after it has been exposed as a FLAWED policy, it was quietly take off but yet, a 25 year mortgage is still as bad!
What we need is to institute basic Financial Management concepts or skills into the education curriculum to groom our people into more financial savvy people. Only this will ensure that our people will not jeopardize their retirement financial planning in the long run.
Goh Meng Seng
*Article first appeared on https://www.facebook.com/gohmengseng.freedom/posts/10205213349706493