CPF Changes : Implications for Financial Planning – This was the title of the keynote presentation that was to be delivered by Mr Leong Sze Hian, President of the Society of Financial Service Professionals. With CPF being close to everyone’s mind, it was not surprising that this seminar at the Smart Expo was fully packed.

To everyone’s great disappointment, Sze Hian could not make it for the event and had to get one of his staff to be the replacement speaker.

The presentation material was probably prepared by him as it was filled with many facts and figures, not unlike his regular contributions to the Straits Times forum.

Unfortunately, that also meant the person delivering the presentation had to go in depth to deliver the message intended. With all due respect to the replacement speaker, this was something which she failed to do. This was understandable as being a last minute replacement, she probably didn’t have enough time to prepare.

She finished her presention in half the allocated time and quickly made her exit without taking any questions from the audience. As she run through the slides pretty fast, I couldn’t take down too much notes from them. These are some which I manage to “salvage”:

• The 3 main concerns of Singaporeans are retirement, housing and healthcare. The changes made in the 2007 Budget meant that we get more cash (from our salary) but less in CPF. This does not really address the main problems.
• Members had an average of only $66k in their CPF accounts, with the median even less at $20k.
• Based on half the minimum sum, we will get back $600/month (at 4%) or $720/month (at 5%) for twenty years after our retirement. With the new CPF Life scheme, we will get back $604 (for male) and $570 (for female) for life.
• According to statistics given by the government, the life expectency of someone born in 2006 is 78 for male and 82 for female. But what is the life expectency of someone who is already 50 now?

The last point is something I am very concerned about. Formulating a new policy based on the statistics of someone born today and applying it across the board for people born decades ago. Will it make the latter better or worse off? Only time will tell.

If you are like most average people and are confused by the mind boggling choices of the CPF Life scheme, please do not hesitate to seek advice from someone who is able to understand it well.

If not, you might choose the option that doesn’t meet your needs. Remember, your CPF money is also your hard-earned money.