CPF BRS FRS

[clockwerkart]

Hi All
Trying to figure out how much FRS I require when I'm 55yo. Please help see if my estimates below are correct? Based on previous years, average yearly adjustment is around 6.01%. so by the time I'm 55yo, I need to have $434,395 as my FRS?

CPF MS Age 55th birthday on or after Full Retirement Sum (after adjustment for inflation) 6.01% average
26 Jul 2003 80,000 4500 5.63%
27 Jul 2004 84,500 5500 6.51%
28 Jul 2005 90,000 4600 5.11%
29 Jul 2006 94,600 5000 5.29%
30 Jul 2007 99,600 6400 6.43%
31 Jul 2008 106,000 11000 10.38%
32 Jul 2009 117,000 6000 5.13%
33 Jul 2010 123,000 8000 6.50%
34 Jul 2011 131,000 8000 6.11%
35 Jul 2012 139,000 9000 6.47%
36 Jul 2013 148,000 7000 4.73%
37 Jul 2014 155,000 6000 3.87%
38 Jul 2015 161,000 9680 6.01%
39 Jul 2016 170,680 10262 6.01%
40 Jul 2017 180,942 10879 6.01%
41 Jul 2018 191,821 11533 6.01%
42 Jul 2019 203,353 12226 6.01%
43 Jul 2020 215,580 12961 6.01%
44 Jul 2021 228,541 13741 6.01%
45 Jul 2022 242,282 14567 6.01%
46 Jul 2023 256,849 15443 6.01%
47 Jul 2024 272,291 16371 6.01%
48 Jul 2025 288,662 17355 6.01%
49 Jul 2026 306,018 18399 6.01%
50 Jul 2027 324,417 19505 6.01%
51 Jul 2028 343,922 20678 6.01%
52 Jul 2029 364,599 21921 6.01%
53 Jul 2030 386,520 23239 6.01%
54 Jul 2031 409,759 24636 6.01%
55 Jul 2032 434,395 26117 6.01%
56 Jul 2033 460,513 27688 6.01%
57 Jul 2034 488,200 29352 6.01%
58 Jul 2035 517,553 31117 6.01%
59 Jul 2036 548,670 32988 6.01%
60 Jul 2037 581,658 34971 6.01%
61 Jul 2038 616,629 37074 6.01%
62 Jul 2039 653,703 39303 6.01%
63 Jul 2040 693,006 41666 6.01%
64 Jul 2041 734,671 44171 6.01%
65 Jul 2042 778,842

Then again looking at CPF website, they say on 2020, BRS is only *$90,500 so FRS = 90500x2 = $181,000. Seems peculiar that suddenly the increase is fixed to $5000/yr instead of variable like previous years? and year 2016 is same as 2015?

2.38% average
38 Jul 2015 161,000 0 0.00%
39 Jul 2016 161,000 5000 3.11%
40 Jul 2017 166,000 5000 3.01%
41 Jul 2018 171,000 5000 2.92%
42 Jul 2019 176,000 5000 2.84%
43 Jul 2020 181,000 5000 2.76%


Is my estimate correct?
*

 

[anfielder]

Nope.

From now on you should be projecting an annual increase of ~3%, in line with inflation.

Past decade or so, the increase was higher than inflation because the real value of the MS was also being increased gradually.

 

[kehyi4]

From what we can tell from CPF FAQ, the intention appears to be to increase FRS at 3% from now on. We can probably use 3% annual increase to estimate FRS in future years ... until they decide to tweak the system ... again ...

From CPF FAQ - Retirement Sum Scheme:

Q
How much retirement sum do I need? And what are the future changes to the retirement sum?

A
For members who turn 55 between 1 Jul 2015 and 31 Dec 2016, their Basic Retirement Sum (BRS) and Full Retirement Sum (FRS) are $80,500 and $161,000 respectively.

To help you better plan for your retirement, your BRS will be made known to you ahead of time. For members turning 55 from 2017 to 2020, the BRS will be increased by 3% from the cohort in the previous year to cater for long term inflation and increase in standard of living. Correspondingly, the FRS and Enhanced Retirement Sum (ERS) will be set at two times and three times the BRS respectively.

Year BRS FRS ERS
2017 $83,000 $166,000 $249,000
2018 $85,500 $171,000 $256,500
2019 $88,000 $176,000 $264,000
2020 $90,500 $181,000 $271,500

 

[clockwerkart]

Thanks anfield for the reply. So recalculation means that my FRS at 55yo is $258,063 to take out my balance. Die liao...

38 Jul 2015 161,000 0 0.00%
39 Jul 2016 161,000 5000 3.11%
40 Jul 2017 166,000 5000 3.01%
41 Jul 2018 171,000 5000 2.92%
42 Jul 2019 176,000 5000 2.84%
43 Jul 2020 181,000 5430 3.00%
44 Jul 2021 186,430 5593 3.00%
45 Jul 2022 192,023 5761 3.00%
46 Jul 2023 197,784 5934 3.00%
47 Jul 2024 203,717 6112 3.00%
48 Jul 2025 209,829 6295 3.00%
49 Jul 2026 216,123 6484 3.00%
50 Jul 2027 222,607 6678 3.00%
51 Jul 2028 229,285 6879 3.00%
52 Jul 2029 236,164 7085 3.00%
53 Jul 2030 243,249 7297 3.00%
54 Jul 2031 250,546 7516 3.00%
55 Jul 2032 258,063 7742 3.00%
56 Jul 2033 265,805 7974 3.00%
57 Jul 2034 273,779 8213 3.00%
58 Jul 2035 281,992 8460 3.00%
59 Jul 2036 290,452 8714 3.00%
60 Jul 2037 299,165 8975 3.00%
61 Jul 2038 308,140 9244 3.00%
62 Jul 2039 317,385 9522 3.00%
63 Jul 2040 326,906 9807 3.00%
64 Jul 2041 336,713 10101 3.00%
65 Jul 2042 346,815

By 55, my RA(OA+SA) will be est $260k, with total CPF used to fully pay house at $194k and additional 87k of accrued interest.

with all these estimates, I still dunno if I can take out any money when I'm 55yo...???

 

[anfielder]

with all these estimates, I still dunno if I can take out any money when I'm 55yo...???

Plan your finances such that any money taken out at 55 is a nice extra and not something you're counting on.

Or make voluntary contributions to the SA if you can afford it, and save on income taxes while also making use of the high SA interest rate to grow your retirement savings. You can't opt out of CPF, so may as well use it to your advantage.

 

[Bedokian]

Augment your CPF payouts with other income streams.

 

[wts2013]

hahaha think +ve, focus your time on the right things, why worry over CPF so early in life, do u know people who can withdraw at 55 are not doing it, hahaha

 

[clockwerkart]

hahaha think +ve, focus your time on the right things, why worry over CPF so early in life, do u know people who can withdraw at 55 are not doing it, hahaha

Thats the thing...i DO NOT KNOW anyone who can withdraw money at 55 now except those older ones who can take out the whole complete lot. All i hear all their money is stuck in CPF, cannot meet MS and given measly mthly cash only. so im checking with my estimates that i am at least able to get 20k to 'so call' enjoy life or do the needful before i die, since yes...its my money.

i just surrendered my ILP that lost 5k so looking into finances in depth now now that I've 'woken up'. no money and no stomach for investment but still wana try out STI ETF see if at least can get something. True that I need to focus on right things so pls help what are the right things to focus on?

 

[clockwerkart]

Plan your finances such that any money taken out at 55 is a nice extra and not something you're counting on.

Or make voluntary contributions to the SA if you can afford it, and save on income taxes while also making use of the high SA interest rate to grow your retirement savings. You can't opt out of CPF, so may as well use it to your advantage.

currently trying to save 1 yrs as back up for my mthly house payment. then all balance will go into SA. Not sure if this is right thing to do?