CPF Minimum Sum to be raised again, again and again

[Enye]

most hdb upgraders are early to mid 40 leh ... take another 20-25 years loan to 65

how can not servicing loan until 65?

but .... they said ... when 55 can sell the condo at $2M+ bought at $1.5M ... cash out (shake leg) and stay in hdb retire studios, no?

 

 

 

something seriously wrong if need to take another 20-25 years property loan when one is early to mid 40s

 

if this is the case, it simply means you cannot afford to upgrade

 

better to stay in a fully paid HDB and accumulate retirement savings

[Goldbug]

The MS was set at $80,000 in 2003 and will be raised gradually until it reaches $120,000 (in 2003 dollars) in 2015.

In 2013 MS (in 2003 dollar) was $115k. We left 5k to reach "120k" in 2015. Assuming that each year is 2.5k.

 

(117,500/115,000) * 148,000 * 1.025 (inflation of 2.5%)= $154,997

 

Round off to nearest hundred. You will get $155k min sum for 2014

 

For 2015:

 

(120,000/117,500) * 155,000* 1.025 (based on inflation of 2.5%) = $162,255

This is my predicted min sum of year 2015

 

After year 2015, Min sum will continue to increase. But it will based on inflation. Of course CPF can change their goal post again.

 

Based on my age, when I age 55(currently 38) and inflation of 2.5%(hope no change), my min sum will be $262,900.

 

Hope you guys know how the min sum mechanism work.

 

Cheers!

 

There is 10.38% inflation in 2009?

Why jump so much from $106k to $117k in 2009

 

No, if you have more than MS, it stays inside OA/SA. But everytime MS is raised, eg. from @$148K to $155K this July, you can transfer $7K from SA/OA to RA to earn 4% interest or to have higher annuity payout in future.

 

the annuity payout is not fixed

[Arenz]

From CPF Life website :

 

"While stable, the monthly payouts are not fixed. The payout amount will be reviewed annually and we may adjust your payout due to changes in life expectancy rates, investment income and transactions which affect your RA balance. This will ensure that the CPF LIFE annuity fund is sustainable in the long run."

[Goldbug]

From CPF Life website :

 

"While stable, the monthly payouts are not fixed. The payout amount will be reviewed annually and we may adjust your payout due to changes in life expectancy rates, investment income and transactions which affect your RA balance. This will ensure that the CPF LIFE annuity fund is sustainable in the long run."

 

In 2009, $117,000 payout in the table given is very different from the one computed now.

[Wt_know]

this means payout amount goal post can also be moved anyhow ...

 

min sum move up ... payout move down in order to support more years ...

like kena slapped twice ... si bei song ar

 

From CPF Life website :

 

"While stable, the monthly payouts are not fixed. The payout amount will be reviewed annually and we may adjust your payout due to changes in life expectancy rates, investment income and transactions which affect your RA balance. This will ensure that the CPF LIFE annuity fund is sustainable in the long run."

 

[Goldbug]

this means payout amount goal post can also be moved anyhow ...

 

min sum move up ... payout move down in order to support more years ...

like kena slapped twice ... si bei song ar

 

 

 

Within 5 years CPF Life annuity payout dropped alot leh

[Arenz]

The latest projected monthly annuity payout of $1,200/mth from age of 65 yrs old until death, is computed based on $155K set aside when you are 55 yrs old on 1st July 2014 assuming certain inflation, investment returns, life span, etc.

 

The irony is that if everyone lives till 100 yrs old, the annuity payout will be much less to support all those still alive :)

[Jman888]

The latest projected monthly annuity payout of $1,200/mth from age of 65 yrs old until death, is computed based on $155K set aside when you are 55 yrs old on 1st July 2014 assuming certain inflation, investment returns, life span, etc.

 

The irony is that if everyone lives till 100 yrs old, the annuity payout will be much less to support all those still alive :)

 

 

i dun think they will support until death if i remember correctly in one of the conditions.

[Goldbug]

The latest projected monthly annuity payout of $1,200/mth from age of 65 yrs old until death, is computed based on $155K set aside when you are 55 yrs old on 1st July 2014 assuming certain inflation, investment returns, life span, etc.

 

The irony is that if everyone lives till 100 yrs old, the annuity payout will be much less to support all those still alive :)

 

within 5 years Singaporeans annuity payout for the $117k dropped so much

Singaporeans life span increase so much for the first batch of members who is only 60 now?

 

Incredible ahh...

[Joseph22]

they will, but not many ppl opt for it.

 

 

payout till death the,monthly,pay out is very low one. So low until its not,worth getting

 

 

i dun think they will support until death if i remember correctly in one of the conditions.

 

that 117k is the money base on 2003 projection. 155k is after inflation since 2003 had been cater in.

 

 

What we should worry is after the 120k base on 2003 had been reach. How will they continue to increase the min sum?? If base on inflation, at lease easier to swallow. If they going to introduce new one... Then we have the right to complain

 

Sorry I forget to comment on the chart below.

 

I think what it's mean is at 55 yo ur MS is 117k by the time u reach 65YO. Ur RA will had increase to that figure. In short grow by interest..

 

 

In 2009, $117,000 payout in the table given is very different from the one computed now.

 

 

 

Edited May 9, 2014 by Joseph22

[Arenz]

Definition of CPF Life :

 

"The CPF Lifelong Income For The Elderly (CPF LIFE) Scheme, provides Singapore Citizens and Permanent Residents with a monthly payout from your drawdown age (DDA) for As Long As You Live."

 

[Mowaxchua]

What we should worry is after the 120k base on 2003 had been reach. How will they continue to increase the min sum?? If base on inflation, at lease easier to swallow. If they going to introduce new one... Then we have the right to complain.

 

We hope they dont change the goal post again.

[Goldbug]

they will, but not many ppl opt for it.

 

 

payout till death the,monthly,pay out is very low one. So low until its not,worth getting

 

that 117k is the money base on 2003 projection. 155k is after inflation since 2003 had been cater in.

 

 

What we should worry is after the 120k base on 2003 had been reach. How will they continue to increase the min sum?? If base on inflation, at lease easier to swallow. If they going to introduce new one... Then we have the right to complain.

 

 

the principal is the same mah

so CPF mislead the batch of members who opted in?

[Mowaxchua]

 

There is 10.38% inflation in 2009?

Why jump so much from $106k to $117k in 2009

You are right. But I dont know why there was a spike during that time.

And social media was not so common (not like now).

Everyone complaining abt the MS in social media.

[Goldbug]

You are right. But I dont know why there was a spike during that time.

And social media was not so common (not like now).

Everyone complaining abt the MS in social media.

 

I don't recall newspaper says inflation hit 10.38% for 2009

[Joseph22]

 

the principal is the same mah

so CPF mislead the batch of members who opted in?

No. It's written in plain black and white if cannot understand can always call or go down to cpf to check.

We can question if the money is there or if they want to keep the money with then for as long as possible. But misleading is one that u cannot accuse them of doing. Simply because if there is misleading in information be sure it will had been whistle blow by Singaporean or opposition liao.

[Kangadrool]

VERY DEPRESSING.....

[Goldbug]

No. It's written in plain black and white if cannot understand can always call or go down to cpf to check.

We can question if the money is there or if they want to keep the money with then for as long as possible. But misleading is one that u cannot accuse them of doing. Simply because if there is misleading in information be sure it will had been whistle blow by Singaporean or opposition liao.

 

The 2009 payout table source is from CPF

plain and simple

 

Now the payout numbers dropped

plain and simple

Edited May 9, 2014 by Goldbug