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PR - pros and cons

Relocating, travelling or planning to make Singapore home? Discuss the criterias, passes or visa that is required.
bhoy
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PR - pros and cons

Postby bhoy » Sat, 12 Mar 2011 9:21 am

there are a lot of posts on here re PR applications, process etc but I'm not actually clear what the are the pros and cons of PR. I do understand that once you get PR you start paying CPF contributions but not too sure what the upsides are. Can anyone help clarify ?

beppi
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Postby beppi » Sat, 12 Mar 2011 10:06 am

You seem to imply that CPF is a disadvantage of being PR.
Forced savings for your retirement and other worthy causes, that are managed by a financially very stable and trustworthy institution, are not bad in my opinion (especially if you don't have the discipline to save on your own). At least it's vastly superior to the bankrupt social security systems of Europe, where anything you pay in is simply lost (for you personally).
Other advantages of being PR are: You status is secure for longer (5 years vs. 1 year for most EP), you can change jobs and are easily accepted by employers (no paperwork or risk for them). You can buy an HDB (if you fulfill the other requirements). And there are some other advantages, like lower medical and school fees.
Disadvantages there aren't, really, unless you see CPF as one (see above).

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Postby Mad Scientist » Sat, 12 Mar 2011 10:10 am

The positive thinker sees the invisible, feels the intangible, and achieves the impossible.Yahoo !!!

bhoy
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Postby bhoy » Sat, 12 Mar 2011 6:31 pm

Chatter - noy implying anything - just asking a straight question because I don't know much about it. From what you have responded with and Chatterks link it looks like the main thing I can see is easier to get another job. I can see the benefits of CPF for most of society and agree it's infinitely better than European models. But that said those benefits wouldn't actually do a lot for me (or I would have thought most expats). I don't need the state to save for me and my kids arenKt in the state system so the discounts there are irrelevant.
I was thinking there must be other more relevant benefits such as tax to make it such a target for so many (which judging by the posts on this forum it certainly is)M
Anyway as I've said above I asked the question with a genuinely open mind and in a state of near ignorance.

beppi
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Postby beppi » Sun, 13 Mar 2011 12:29 am

There is no, absolutely no, difference in taxation rates for PR holders and others.
The only thing is that the CPF contribution is not taxable (and you get it back in full, just much later and with strings attached), but there the contribution by your employer is certainly a much bigger benefit than avoiding the low Singapore taxes.

By the way: Neither my nor MS's name is "chatter".

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Postby ksl » Sun, 13 Mar 2011 12:52 am

Well I believe you can also invest your CPF too if you like! There are rules though. Of course there are many benefits with CPF.

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Postby asia singapore » Wed, 23 Mar 2011 3:56 pm

ksl wrote:Well I believe you can also invest your CPF too if you like! There are rules though. Of course there are many benefits with CPF.


You can invest your CPF once there are more than 20K in your ordinary account. CPF also has a portion contributed by employer (employer cpf) which means not only you have to put money into your savings, your employer also has to put money in it. This I believe is another advantage of CPF.

http://mycpf.cpf.gov.sg/CPF/my-cpf/make-invest/MI.htm

CPF is an advantage if you do not have saving and investment habit. If you know how to invest and think you can do better rate of return, you can still invest with CPF so it is still not a disadvantage.

I agree with beppi. CPF is a lot better than European style long term ponzi schemes called social security. There social security taxes current workers to pay social security benefits for current retirees.


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