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Old 10-09-2019, 08:50 PM   #33
henrylbh
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Join Date: Mar 2004
Posts: 12,713
Now FRS is 176,000. 20 years later, SA would be $317,000 if annual increment is 3%, to meet prevailing FRS.
Right, but it’s at least fairly likely the BRS/FRS/ERS increases won’t be as much as 3% per year for 20+ years (the government has explained they’re only in “catch up mode” right now), wages are subject to inflation and career progression effects, and most people work longer than 20 years. Also, this forecast assumes zero bonuses (evidently not even a “13th month”), zero cash top ups for tax relief, zero government top ups, zero extra employer contributions to MediSave, and zero OA to SA transfers for higher interest.
TS asked whether with the numbers he gave and having an constant income of $3500 for the next 20 years will able to meet FRS.

I did not answer him on whether can or cannot meet FRS. I merely said that FRS could be 317,000 in 20 years based on 3% pa. It could be more or it could be less. God knows. Min sum/FRS has increased at a compounded rate of no less than 5% over 30 years from inception in 1987 to 2016.

Your imaginations and assumptions simply do not fit his question/doubt, especially dumb with top up to meet FRS and government top ups when he is asking based on working contribution without annual bonus/increment, even though that may not be realistic.
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