CPF SA

[d3n]

Even when u retire, u dun spend $2k exactly every month. Probably some days u need more?

If u are not cash+investment rich and only rely on RA payout. What happens if u need more then $2k?

Why would you want to vary your monthly withdrawal from your retirement portfolio?

Even financial experts mostly agree to withdrawing 4% from your portfolio a year for retirement.

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[lordofthering]

I got one friend at 35. he and his wife just topped up to 182k each.

so at 55, all $ will go into ERS? They want the $2000 (in today real terms) each so that they can at least have a comfortable retirement.

Will there be any money left at 55 after putting into ERS?

182k is the most one can top up? Nothing else right?

up my friend question

 

[inmyopinion]

I got one friend at 35. he and his wife just topped up to 182k each.

so at 55, all $ will go into ERS? They want the $2000 (in today real terms) each so that they can at least have a comfortable retirement.

Will there be any money left at 55 after putting into ERS?

182k is the most one can top up? Nothing else right?

Every year increase. 2020 is $181K
Another 20yrs, it will be another number

 

[highsulphur]

One thing I learn about cpf is there is no point trying to argue the merits or flaws of it with another person.

Everyone's view is pretty much set

 

[Thoreldan]

Why not a combination of both?
Stability components in cpf
Flexibility in cash+own investment

 

[lordofthering]

Every year increase. 2020 is $181K
Another 20yrs, it will be another number

so ERS increase faster or my friend CPF @ 4-5%?

also ERS now 280k and max top up 182k. Maybe cannot hit ERS when 55?

 

[d3n]

Thats what i am saying.
I just have moderate sum in cpf and have more sum in cash+investment

So i wun bother to pump my SA to the max if i cannot afford it.

Why not a combination of both?
Stability components in cpf
Flexibility in cash+own investment

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[Kaypohji]

If u only have frs now and assuming u didn’t work to have the extra contributions, yes u won’t hit ers even 20 years later because ers is a moving target.

So key is reach frs through top up and continue to work to have additional cpf contributions and this is the only way to reach ers

so ERS increase faster or my friend CPF @ 4-5%?

also ERS now 280k and max top up 182k. Maybe cannot hit ERS when 55?

 

[lordofthering]

If u only have frs now and assuming u didn’t work to have the extra contributions, yes u won’t hit ers even 20 years later because ers is a moving target.

So key is reach frs through top up and continue to work to have additional cpf contributions and this is the only way to reach ers

thanks found a table and what you said is true. so most likely need keep contributing as my friend is not salaried worker

 

[inmyopinion]

so ERS increase faster or my friend CPF @ 4-5%?

also ERS now 280k and max top up 182k. Maybe cannot hit ERS when 55?

ERS in 2020 is $271,500
https://www.cpf.gov.sg/Assets/members/Documents/RetirementPayouts.pdf

 

[edwinttt1978]

One thing I learn about cpf is there is no point trying to argue the merits or flaws of it with another person.

Everyone's view is pretty much set

Exactly. Whether they win, lose or draw with their CPF is none of our business.

 

[lordofthering]

One thing I learn about cpf is there is no point trying to argue the merits or flaws of it with another person.

Everyone's view is pretty much set

yes, almost everyone i talk to advised me not to put $ into SA.

 

[Thoreldan]

yes, almost everyone i talk to advised me not to put $ into SA.

I'm trying to strike a balance haha.. half of my money in cpf sa and the other half in investment.

 

[inmyopinion]

IMO, don’t depend so much on the payout when u reach 65.
If u live till 70, only enjoyed 5 yrs payout.

Of course everyone wants to live longer. Savings + CPF payout is good combo.

 

[lordofthering]

I'm trying to strike a balance haha.. half of my money in cpf sa and the other half in investment.

my friend also same. a % in cpf, % in stocks, % in crypto

 

[Thoreldan]

my friend also same. a % in cpf, % in stocks, % in crypto

Did u ask gandalf to create some gold for u ?

 

[lifeafter41]

Put into cpf see money grow happily... but reality is are you able to use up the whole sum?

For me i am in retrenchment age, i rather save money in cash and do investment, use whatever in my OA to clear my hdb before i turn 55 then whatever balance then transfer to SA.

Hence even if my SA can go to 1million, when i retired , like this slowly withdraw till i die also cannot use finish. End up pass to my kid.

What for right?

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Retrenchment age??
What’s this definition? First time come across this.....
How old are you btw?

 

[d3n]

Life after 40 is very uncertain.

Me 41 this year.

Especially during this covid situation, laying off, retrenchment is very real. Older + highly paid or older or highly paid staff is always first to go.

Ppl below 40 will not think this far cos u rarely see ppl in their 20s or 30s getting retrenched.


Give u a scenario,

Age 45 suddenly got retrenched. OA empty cos all pump to SA. Hdb still got 10-15 years. Where u find cash to top up OA to finance house? Assuming u on hdb loan. Even bank loan u still need to find cash to pay installment.

This situation is real for some out there.

Retrenchment age??
What’s this definition? First time come across this.....
How old are you btw?

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[highsulphur]

How one views cpf depends on so many factors

Your social economic background
Your salary and networth
How good you think you are in investing
Your faith in PAP and the integrity of CPF
Whether the monies in CPF is truly safe

 

[highsulphur]

There's no such thing as a retrenchment age in this age. You don't have to be old to be retrenched. Early 20s is also at risk. I was retrenched at 36. One should not think one is at risk only past 40 or a certain age