Talking Point >>> Is your CPF enough for retirement?

[Ct3833]

34 minutes ago, VSV said:

@Throttle2  what if govt change the goal post? Many more Singaporeans will be like you. Just drawing the interest and getting thr cpf life payout. Eventually, people will pass away. The principal that is not drawn will go to the estate. This sum will be exponential given the number of singaporeans with high salary amd cpf balance. I just have a gut feel that this is a ticking timebomb.

If you are referring  OA and SA , one can nominate it to his/her next of kin when one pass on? If you are referring to cpflife, it is entirely a different story, it is like an endowment  scheme, one can draw on the payout on and on till his/her last day, the balance when one passes on before 83, the balance minus interest reversal from 65, will still go to next of kin, of course it will be a lot less or none if one die at a late state beyond 70+.  I dont know how to compute that frankly but i am not too bothered.

 

 

 

 

 

Edited April 17, 2021 by Ct3833

[Throttle2]

We can only plan base on what we know or foresee in the probablkty which most represents what we know.

if we dont know we dont know.  If change comes it changes and we adjust.  
most importantly, we must understand that CPF is just a supplement to our retirement,  without whch, more lower income Singaporeans would be devastated.

with the way inflation is hiting this world, i see many people crying when they hit retirement years and beyond.

“be the ant not the grasshopper” i understood this since the point in time i learned how to use money.  
is this the best way to manage?  Perhaps not becos there is no best way, it all depends on our upbringing, values and personal risk profiles.

however, i certainly do not want to financially depend on anyone in my silver years......not my children nor my grandchildren 

 

[VSV]

@Throttle2 

I don't mean now. I may in future when there are many more. It is not just FRS or ERS.  It is the principal that is in the OA and SA that remains untouched until the person passes away.

Currently, probably fewer ppl like you. But the numbers will be much more in future.

[Volvobrick]

19 minutes ago, Throttle2 said:

 

however, i certainly do not want to financially depend on anyone in my silver years......not my children nor my grandchildren 

 

I only hope my kid or future grand kids do not have to depend on me in my golden years! 

[Throttle2]

1 hour ago, VSV said:

@Throttle2 

I don't mean now. I may in future when there are many more. It is not just FRS or ERS.  It is the principal that is in the OA and SA that remains untouched until the person passes away.

Currently, probably fewer ppl like you. But the numbers will be much more in future.

If that is the case, i can tell you that means Singaporeans have overall gotten richer and our economy too.  
it all moves in tandem , not need to worry

Edited April 17, 2021 by Throttle2

[Wt_know]

@Lala81 can give $1M to your kid liao

https://vt.tiktok.com/ZSJhs62R4/

[Throttle2]

1 hour ago, Wt_know said:

@Lala81 can give $1M to your kid liao

https://vt.tiktok.com/ZSJhs62R4/

By that time, i GUARANTEE you $1mil is only worth at best $250k in real terms

muayhahahahahaha

Edited April 17, 2021 by Throttle2

[Throttle2]

On 12/12/2012 at 10:41 AM, Wt_know said:

Is your CPF enough for retirement?

 

i like one caller said ...

since the panel suggests that the onus lies on the cpf holder to manage their finances and be prudence in order to have enough money for retirement then return cpf money to us ... let us manage our own money .... no point to have cpf ... since cpf is not enough for retirement ... lolz

 

 

anyway, i support cpf scheme which is a national scheme to "force" people to save up

but the return generated in cpf is too low to offset the rise of cost of living and not to mention the OA is almost depleted for housing.

 

 

final vote result

looking back at your post @Wt_know 

any changes you want to make? 🤣😂

 

[Wt_know]

1 hour ago, Throttle2 said:

looking back at your post @Wt_know 

any changes you want to make? 🤣😂

 

simi changes? i just leave the $$$ in cpf and forget about it ...

when 55 ... just Shield the SA for $250K and forget about it again ....  

at 65 ... drawdown 4% (yearly interest) + 2% (capital) every year from SA + CPF life payout ...

i guess enough for 2 meals in hawker + 1 meal in DTF/DXEr/HDL/Crystal Jade ... that's it

Edited April 18, 2021 by Wt_know

[Mkl22]

On 4/17/2021 at 7:36 PM, VSV said:

@Throttle2 

I don't mean now. I may in future when there are many more. It is not just FRS or ERS.  It is the principal that is in the OA and SA that remains untouched until the person passes away.

Currently, probably fewer ppl like you. But the numbers will be much more in future.

You worry too much about the things you cannot control. 
touch wood but who can guarantee that one will still be alive 1 year from now? 
in the end one just plans to to best of his ability given the information and rules as it is. Whatever happens then readjust. 

[Throttle2]

18 minutes ago, Wt_know said:

simi changes? i just leave the $$$ in cpf and forget about it ...

when 55 ... just Shield the SA for $250K and forget about it again ....  

at 65 ... drawdown 4% (yearly interest) + 2% (capital) every year from SA + CPF life payout ...

i guess enough for 2 meals in hawker + 1 meal in DTF/DXEr/HDL/Crystal Jade ... that's it

你成公了

[Wt_know]

3 minutes ago, Mkl22 said:

You worry too much about the things you cannot control. 
touch wood but who can guarantee that one will still be alive 1 year from now? 
in the end one just plans to to best of his ability given the information and rules as it is. Whatever happens then readjust. 

yeah ... after Covid i realised i “overthink” too much

who knows we cant even leave singapore

overthink until the last mile and last dollar ... but covid change everything

covid is just the starter and not going to be a one-off pandemic ...  

we screw up the earth too much liao

Edited April 18, 2021 by Wt_know

[Mkl22]

36 minutes ago, Wt_know said:

yeah ... after Covid i realised i “overthink” too much

who knows we cant even leave singapore

overthink until the last mile and last dollar ... but covid change everything

covid is just the starter and not going to be a one-off pandemic ...  

we screw up the earth too much liao

Yeah. Mother Earth starting the cull! 

[Voodooman]

35 minutes ago, Wt_know said:

yeah ... after Covid i realised i “overthink” too much

who knows we cant even leave singapore

overthink until the last mile and last dollar ... but covid change everything

covid is just the starter and not going to be a one-off pandemic ...  

we screw up the earth too much liao

Very easy, someone already benchmarked for us, $4.3m to retire comfortably with 2 cars. Lol

[Longg8]

4.3 is about right if one retire about 45yrs old. 

[TangoCharlie]

11 hours ago, Voodooman said:

Very easy, someone already benchmarked for us, $4.3m to retire comfortably with 2 cars. Lol

I think I still have to work even IF I reach this threshold. I don't know.how to generate usd90k income from usd1.2m in financial instruments.😭

Edited April 19, 2021 by TangoCharlie

[Voodooman]

36 minutes ago, TangoCharlie said:

I think I still have to work even IF I reach this threshold. I don't know.how to generate usd90k income from usd1.2m in financial instruments.😭

7.5% return, need to take a fair bit of risk. I will be happy with 4-5%. To get USD90K a year, it means an investment portfolio of USD2.25m or $3m in local currency. 

The survey seems to assume a primary residence costing around $2m?  2 good cars for $0.5m (or maybe it is funded by the USD90K a year income)?

One option for SGeans, which T2 will scorn at, is to downgrade to a $0.8m HDB (option not available for many in the region) and invest the balance. 

[Voodooman]

9 hours ago, Longg8 said:

4.3 is about right if one retire about 45yrs old. 

Why only at 45?