I am concern that the proposed CPF changes was initially TOLD( not proposed for our consensus ) to us. Now it seem our leaders are getting 'frustrated', in their recent speeches, with our lack of agreement that it will benefit us more. Before we get written off as not knowing what's 'best for us', let's discuss a few issues :-

1) If we make the new scheme optional ie. us financially unsavvys may lose out if we don't buy the new scheme but I get to decide. In any commercial deal, whenever there is a propose change to policies previously agreed upon, depositors are given a choice or incentives to move to the new scheme.

2) We do not choose to deposit our money with CPF. Rather, this is forced savings under rules that was in placed then. But if rules are changed as and when the ruling party feels best, we may never see our money alive or ever? what's next? collect at 99 yrs old because a later goverment is in need of money or 'feels that it is best' we leave it all to a future generation? This poses a danger to the current ruling party - many voters may go for a good mix of political parties as a mean to prevent more changes to their retirement funds, etc.. A far-sighted policy with good intention( in my opinion ) may fuel suspicious rumours and distrust for the current government. Many poorer Singaporeans have 'given up' on getting back their CPF savings as was promised, when they started depositing. At best we will get a small monthly sum that may not be enough to decently retire on, after deducting for housing loan, medisave( leave to next generation if we do not use up ), etc..

3) If we do not have a choice for these proposed changes then MORALLY it is only correct that such forced savings SHOULD NOT DEPRECIATE! How can we be convinced that it is good for us to be forced to save but may get back less due to rising cost of living over the years! I agree that banks are making lots of money from depositors whose funds shrinks due to inflation against puny interest paid( most lose at least 2-3% yearly due to inflation )  - but we cannot begrudge them of this because depositors have a choice!

4) In my opinion, we are not going to get more interest when the new changes kicks in. This is especially so for SMRA( currently paying 4%). With our large reserves( thus high ratings ) and appreciating SG$ policy, bond purchasers are willing to get less interest from our sovereign bonds as SG$ appreciation will mean a higher return for Investors from countries with poorer ratings and weaker currency. Also due to the relatively small amount of SG$ float and our large reserves, SG$ will likely go the direction our government wishes. Our current government bond interest = 2+% ie. + 1% more will mean less for many. Current CPF Special & Medisave accounts pays 4% for entire deposit. In future, it will only pay 3+% for 1st $60K and 2+% for the rest if the interest of our government bonds remains status quo or slight! 

5) On the other hand, we are told that to remain competitive, we need to grow our population fast. Up to July 2007, our goverment forecasted 1-2% inflation growth yoy despite GST raise. It was 2.9%( yoy ) last month and we have revised our projection to 2-3%. Personally I feel that my cost of living have gone way past 3%! Anyone else? :-((

6) Many investors will agree that US loans, China's run-away inflation, rich equity pricings, rising cost of commodities, 6 years of equity rise, etc. may mean an impeding global downturn possibly leading to rising inflation! We often counter inflation by a stronger SG$ which may mean lower interest on our government bonds( ref. para 4 ).

7)  I understand that there is risk on the part of our government as it is not always possible to outdo inflation. I also understand that CPF money is loaned cheaply to eg. GIC and Temasek, who can get cheaper funds due to their high ratings, for their investments. However these organisations are create for, belongs to, its costs indirectly paid for and is operated for the benefit of Singaporeans. The proposed CPF changes should not only take care of our future but also reward retiring Singaporeans who had contributed towards Singapore of today. This generation is not used to and should not be allowed to think that they can solely depend on the government  for handouts. However some reassurance that we can actually depend on our CPF savings to survive our golden years will take alot of stress off our shoulders and perhaps allow us to live to 85 years old.

8) I propose that our government 'coax' us to opt for CPF changes by pegging interest of all SMRA savings a 'multi-tiered age-group CPI' that caters for changing needs as we age, whenever the government's investment returns allows it to do so. This will allow all Singaporeans to celebrate good returns and not deem it as 'government's money, not my money'!

9) I wish to comment that we have definitely benefited from the present government's foresight and discipline. With this team, we will not only continue to prosper( allowing for, occasional blips due to external factors ) but be easily able to protect our CPF savings against inflation and allow us to retire gracefully when we can no longer work. 

10) Let us no longer understate and give generous hand-outs later but give Singaporean and real feel of security from our CPF savings. It may also resolve our Minister, Dr Ng's concern that some Singaporean do not even contribute to their medisave......they will, when assured that terms will remain and rate of return is attractive!

I humbly submit my opinions with no intention of being critical but hope to be constructive, will appreciate any reply or opinions whether for or against. 

As a parent, I find that it is sometimes more productive to incentivise rather than enforce!

Thank you for your time!