How much should one earn

[endlssorrow]

in order to hit the retirement account of say $162k?

assuming if special account got balance $30k.

if i am age 35, my guess is earning min $4500 for another 20 years?

if there a formula or what for us to key in?

 

[wahkao3]

anyone has spreadsheet for this?

 

[greythorne]

I think should include how much one can spend and how much to save to hit that retirement target.

 

[peterchan75]

I think should include how much one can spend and how much to save to hit that retirement target.

TS is asking how much a person needs to earn in order to accumulate $161K in the CPF for FRS(Full Retirement Sum) by 55 yo. The amount is based on income, employee's and employer's contribution to CPF.
https://www.cpf.gov.sg/employers/em...butions/cpf-contribution-and-allocation-rates

 

[henrylbh]

in order to hit the retirement account of say $162k?

assuming if special account got balance $30k.

if i am age 35, my guess is earning min $4500 for another 20 years?

if there a formula or what for us to key in?

If you earning 4500x13, by 55 you would have 208k according to my worksheet.

If SA at 161k grows at 3%, it would reached 291k in 20 years.

 

[rainbow123]

TS is asking how much a person needs to earn in order to accumulate $161K in the CPF for FRS(Full Retirement Sum) by 55 yo. The amount is based on income, employee's and employer's contribution to CPF.
https://www.cpf.gov.sg/employers/em...butions/cpf-contribution-and-allocation-rates

161K is this year FRS . Using a "imaginery" increase of 3% for FRS ,
20 years later should be around 274K for FRS instead of 161K

Next 5 years BRS already at CPF board .

Age 55 in 2016 $80,500

Age 55 in 2017 $83,000

Age 55 in 2018 $85,500

Age 55 in 2019 $88,000

Age 55 in 2020 $90,500

By 2020 , the FRS is at 181K

TS , need to factor this increase of FRS in the next 20 years

 

[peterchan75]

161K is this year FRS . Using a "imaginery" increase of 3% for FRS ,
20 years later should be around 274K for FRS instead of 161K

Next 5 years BRS already at CPF board .
Age 55 in 2016 $80,500
Age 55 in 2017 $83,000
Age 55 in 2018 $85,500
Age 55 in 2019 $88,000
Age 55 in 2020 $90,500
By 2020 , the FRS is at 181K

TS , need to factor this increase of FRS in the next 20 years

Good point. Wow ... it's inflation.

 

[endlssorrow]

Like that yearly increase must be how much?$100 enough?

 

[endlssorrow]

I mean if 2015 pay is $4000, then 2016 is $4100 then add $100 yearly for monthly salary to cover up cpf inflation.

 

[peterchan75]

Can use the CPF calculator.
https://www.cpf.gov.sg/employers/tools/calculators

 

[endlssorrow]

Can use the CPF calculator.
https://www.cpf.gov.sg/employers/tools/calculators

doesn help much

 

[Sai777]

if the contribution to SA is $300 monthly consistently for the next 20 years and cpf does not change its policy, there will be $174,409.85 at the end of 20th year.

FRS will adjust every year. So technically salary increment must inline with FRS increment; ignoring the contribution rate in each age group.

 

[endlssorrow]

If you earning 4500x13, by 55 you would have 208k according to my worksheet.

If SA at 161k grows at 3%, it would reached 291k in 20 years.

hmm... if like that, i think most degree holder with pay once hit $4k, can easily hit $161k for retirement right?

 

[henrylbh]

hmm... if like that, i think most degree holder with pay once hit $4k, can easily hit $161k for retirement right?

But 161k will not stay. Already announced that in 2020, FRS is 181k.

 

[endlssorrow]

But 161k will not stay. Already announced that in 2020, FRS is 181k.

i understand, every year they keep increasing.. maybe now earn $4k, 10 years later increase to $400k, my pay got $5k also dont know got use anot.

 

[henrylbh]

i understand, every year they keep increasing.. maybe now earn $4k, 10 years later increase to $400k, my pay got $5k also dont know got use anot.

If now 35yo with 30k only in SA, even salary 6k next year also may not catch up if FRS is projected to increase by 3% pa.

 

[anfielder]

i understand, every year they keep increasing.. maybe now earn $4k, 10 years later increase to $400k, my pay got $5k also dont know got use anot.

at the current rate of increase, it will take ~30 years for FRS to hit $400k.

 

[henrylbh]

at the current rate of increase, it will take ~30 years for FRS to hit $400k.

You should take heart that it is not going to increase like more than 6.4% pa from $30k in 1988 to $161k in 2015.

 

[endlssorrow]

I can't stop or prevent it from keep rising.
I can only try my best to hit the sum with my salary.

If salary can't, then have to top up by cash earlier to accumulate the interests lor.

LLSThumb liao