# Re: The Maths of Pension Fund Returns

The pap promised Singaporeans a good life.
They are still waiting for it.
The pap can easily make the life of older Singaporeans
more bearable if they pay these people their fair
share of the return on their CPF balances.
Of course the pap government must also make
good for the 40+ years when they underpaid Singaporeans.

"PAP" <pap@xxxxxxxxxxxx> wrote in message news:1MgOi.1304\$d2.10@xxxxxxxxxxx
You have some points here and I do agree with you on certain areas. Now,
if you think your CPF's savings can do much better, please withdraw it
now, come back in 40years time and tell us we are wrong. Talk is cheap,
how many people really have gained in their investments with CPF allowing
part of their live savings to be invested elsewhere. Today, actually many
have been worse off.

"truth" <truth@xxxxxxxxxxxx> wrote in message
news:Tc6Oi.6708\$H22.342@xxxxxxxxxxxxxxxxxxxxxxxxxxxxx

From :
http://singaporemind.blogspot.com/2007/10/mathematics-of-pension-fund-returns.html

The Mathematics of Pension Fund Returns....

http://www.straitstimes.com/Free/Story/STIStory_164084.html
'We never invested the CPF money in shares or bonds.
We always invested the CPF money in Singapore Government
bonds where the Singapore Government guarantees a fixed return
and you're always going to get it,' said Mr Lee, who is the GIC chairman.
.
"In other words, you will never lose. And if anybody thinks
he can do better, he's welcome to take his money and
go to a fund manager and try and do better"

What is the difference if your money returns 5.5%vs 3.5% a year ?

\$100 at 3.5% over 40 yrs = \$395
\$100 at 5.5% over 40 yrs = \$851
\$100 at 7.5% over 40 yrs = \$1800
\$100 at 10% over 40 yrs = \$4500

Just a 2% improvement of returns means that you retire with twice as much
money ....if you're the Chilean govt which returned 11.8% since the
inception of its national pension fund or Calpers, your retirees will
have 10 times more than than another govt that gives a return of 3.5%.
The long term rate of return is single most important factor when we talk
about the success of a pension plan. A national pension fund simply
cannot depend on how well a govt can persuade its people to put aside
more and more money to be locked up at low returns....then convince them
to work harder and longer using various state controlled media. A
guaranteed low rate of return is a useless guarantee because of
inflation, the buying power of money is not guaranteed. It becomes harder
to swallow when you find that the money is loaned to a state owned
enterprise that returns 9% per yr with that money and is not going to
give much of it back to your pension account.
.
In a country where alternative views receive very little air time and the
people's representatives are men and women who have learned to say 'yes'
in a hundred different ways and see it as their mission to convince the
people that whatever is done and changed is for their own good, you can
always tell people what you're doing is the best that can be done...and
for that you deserve your millions while the ordinary people fall back on
their work ethics to see them through yet another few years of labor.

When the strain of labor makes it hard for the people to smile, you can
always have another "Smile Campaign"...give out a few goodies close to
elections, get the media to recap on the wonderful achievements since the
last one and the people will appreciate that you have done a good job.
The people can always be made happy if they are told only what is good
for them.

.

## Relevant Pages

• Re: Chee Siok Chin to finish serving 10 days jail imposed by Judge Belinda Ang
... sacrificing to regain the freedoms and rights of Singaporeans. ... the obligations of Singaporeans to his pap government. ... fight for Singaporeans freedom and human rights. ... She don't even have money to appeal against the unjust sentencing of her ...
(soc.culture.singapore)
• Re: What is most important to LKY ?
... Singaporeans are being fed drugs by the pap. ... rather they greed for money and the false perception that PAP ... will be the most important thing to LKY. ...
(soc.culture.singapore)
• Re: Chee Siok Chin to finish serving 10 days jail imposed by Judge Belinda Ang
... sacrificing to regain the freedoms and rights of Singaporeans. ... the obligations of Singaporeans to his pap government. ... She don't even have money to appeal against the unjust sentencing of her to ...
(soc.culture.singapore)
• Re: The Maths of Pension Fund Returns
... Singaporeans only ask to be given a fair ... return on their cpf balances. ... The Mathematics of Pension Fund Returns.... ... We always invested the CPF money in Singapore Government ...
(soc.culture.singapore)
• Re: What is most important to LKY ?
... rather they greed for money and the false perception that PAP ... media and fed Singaporeans with all their ... will be the most important thing to LKY. ...
(soc.culture.singapore)