For discussion - Will most singaporeans be able to achieve FRS?

SBC

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Whenever the topic of CPF comes up, there will always be heated discussions.

I personally think CPF is a useful tool but, not the only tool to rely on for one’s retirement in Singapore. 4%+ p.a. risk free rate compounding. I can’t find a similar bond (AAA rated) that pays that yield. Definitely good to have some of this in my portfolio.

Returning to the topic, I belong to the camp who believes that most can hit their FRS if:
(1) they stay actively employed and strive to build their career;
(2) they don’t over-consume in buying their property;
(3) they actively plan to hit it and YOLO less.

Yes, there will always be exceptions. Some will have to stop working prematurely because of health reasons. And there will always be people who drop out of employment at their own volition like my wife. Uni grad, not interested to work and dropped out of the employment world in her 30s.

I am just an employee. Have been working more or less consistently since I graduated, focused on progressing as much as I can in my career. I have already exceeded the $181k in my SA for the FRS (I know it is a moving target, depending on one’s age group) but I get 4% compounded annually on my current SA balance. The increase in the last few years for FRS has been ~$5k per annum and if it stays around that level, by the time I hit 55, my FRS will be taken care of solely by the compound interest even if I stop working today, which I don’t intend to. I would like my SA to hit the ERS when I retire.

As for my wife who has stopped working since her 30s, luckily for her she has a husband who plans for her and will ensure that she will at least hit her FRS through regular top-ups when she turns 55. So far, her SA is on track.

That’s 2 persons who will hit their FRS. We are just 2 normal Singaporeans making our way in Singapore. Not looking to the government for any handouts, not intending to game the system for any freebies but merely exercising self responsibility and self reliance.

3058-F28-F-D576-4-A65-AE66-AA4-A8-C3765-C4.jpg

Well done. Mine is about 50k less than yours.
 

qhong61

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Whenever the topic of CPF comes up, there will always be heated discussions.

I personally think CPF is a useful tool but, not the only tool to rely on for one’s retirement in Singapore. 4%+ p.a. risk free rate compounding. I can’t find a similar bond (AAA rated) that pays that yield. Definitely good to have some of this in my portfolio.

Returning to the topic, I belong to the camp who believes that most can hit their FRS if:
(1) they stay actively employed and strive to build their career;
(2) they don’t over-consume in buying their property;
(3) they actively plan to hit it and YOLO less.

Yes, there will always be exceptions. Some will have to stop working prematurely because of health reasons. And there will always be people who drop out of employment at their own volition like my wife. Uni grad, not interested to work and dropped out of the employment world in her 30s.

I am just an employee. Have been working more or less consistently since I graduated, focused on progressing as much as I can in my career. I have already exceeded the $181k in my SA for the FRS (I know it is a moving target, depending on one’s age group) but I get 4% compounded annually on my current SA balance. The increase in the last few years for FRS has been ~$5k per annum and if it stays around that level, by the time I hit 55, my FRS will be taken care of solely by the compound interest even if I stop working today, which I don’t intend to. I would like my SA to hit the ERS when I retire.

As for my wife who has stopped working since her 30s, luckily for her she has a husband who plans for her and will ensure that she will at least hit her FRS through regular top-ups when she turns 55. So far, her SA is on track.

That’s 2 persons who will hit their FRS. We are just 2 normal Singaporeans making our way in Singapore. Not looking to the government for any handouts, not intending to game the system for any freebies but merely exercising self responsibility and self reliance.

3058-F28-F-D576-4-A65-AE66-AA4-A8-C3765-C4.jpg
Time to donate some to charity.
 

henrylbh

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The increase in the last few years for FRS has been ~$5k per annum and if it stays around that level, by the time I hit 55, my FRS will be taken care of solely by the compound interest even if I stop working today, which I don’t intend to. I would like my SA to hit the ERS when I retire.
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Good for you. You have hit FRS early.

Even if you stopped work today, your current SA will likely to exceed ERS in less than 7 years :s13:
 

henrylbh

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Well done. Mine is about 50k less than yours.

Unlikely you can catch up even if your contributions hit the annual limit. The gap will only widen. That's the result of hitting FRS early. So head start for your kids :s13:
 

ocs_woodlands

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For discussion - Will most singaporeans be able to achieve FRS?

Simple rule of thumb.

Look at your posting history.
If you post more in EDMW, your chances are lower maybe 25%?
If you post more in Money Mind, your chances are higher maybe 75%?

Stereotyping and profiling are useful in real world

:D:D:s13::s13::D:D
 

Merg91

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Edmw definitely has more potential opposition
candidates.
Hot edmw topics like ministers' pay, CPF, GST etc etc....
If elected, these MPs will turn Singapore Parliament into a circus with their 'arguments'.

Majulah Singapura !
 

fr33d0m

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Edmw definitely has more potential opposition
candidates.
Hot edmw topics like ministers' pay, CPF, GST etc etc....
If elected, these MPs will turn Singapore Parliament into a circus with their 'arguments'.

Majulah Singapura !

if elected, will these MPs ask low salary?
 

Merg91

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$200k.
Occasional 'talk' but mostly sitting dozing in aircon parliament. Can be absent too.
Not every month got parliament sessions some more.
Sometimes got to give some speeches & regular meet MP sessions.

Sure they like.

if elected, will these MPs ask low salary?
 

whizzard

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Well done. Mine is about 50k less than yours.
Good for you. You have hit FRS early.
Wow! Great job! How old are you?
Even if you stopped work today, your current SA will likely to exceed ERS in less than 7 years :s13:
Thanks for the encouragement. If I can do it, many others can also do it.

More pertinent to ask how he did it :s13:
No magic formula here. Just sheer persistent hard work and perseverance to remain employed as long as I can, no matter how shitty the workplace or job gets. After all, my SA contributions are all from my CPF contributions which means ensuring that I continue working is important.

I didn’t do any cash top-up for my own SA over the years because I had to top-up my wife’s CPF account by cash for her to accumulate her own FRS since she stopped working years ago. I did this for 2 main reasons. Cash top-up because my cash yield is lower than CPF interest rate (whilst I may get a higher return by investing the money, that’s not an appropriate comparison as that is considered risk capital whilst bank deposit and CPF deposit are both relatively risk free). Secondly, cash top-up gets me tax deductions.

Time to donate some to charity.
Yes, I donate occasionally to what I consider are worthy causes.

Not forgetting that as a sandwich class, I also have to support my own family and my parents as well.
 

fr33d0m

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Thanks for the encouragement. If I can do it, many others can also do it.


No magic formula here. Just sheer persistent hard work and perseverance to remain employed as long as I can, no matter how shitty the workplace or job gets. After all, my SA contributions are all from my CPF contributions which means ensuring that I continue working is important.

I didn’t do any cash top-up for my own SA over the years because I had to top-up my wife’s CPF account by cash for her to accumulate her own FRS since she stopped working years ago. I did this for 2 main reasons. Cash top-up because my cash yield is lower than CPF interest rate (whilst I may get a higher return by investing the money, that’s not an appropriate comparison as that is considered risk capital whilst bank deposit and CPF deposit are both relatively risk free). Secondly, cash top-up gets me tax deductions.


Yes, I donate occasionally to what I consider are worthy causes.

Not forgetting that as a sandwich class, I also have to support my own family and my parents as well.

You should have done cash top up to your own SA to lower your tax and topped up your wife’s SA with your OA.

Now it is late because you have hit FRS.
 

whizzard

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You should have done cash top up to your own SA to lower your tax and topped up your wife’s SA with your OA.

Now it is late because you have hit FRS.

Same thing, isn’t it? Top up to my wife’s CPF also gets tax deduction.
 
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