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More CPF savings with new rules

Ben5266

By Ben5266,
in Lite & EZ

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Wildfaye29

Wildfaye29

Turbocharged

minimum sum will not stay at 161k and will increase with inflation

 

usually there would not be too much excess SA funds after deducting the minimum sum

 

your best bet is to accumulate more OA if you wish to cash out a significant amount ie spend less on property repayment

 

once RA is created, salary contributions will no longer flow into SA, only to OA and MA if you continue to work 

 

erm... OA best usage is to pay for property leh, imo la...

 

I know min sum will increase w inflation. assuming the figures don't change, than the amt that is able to be withdrawn from SA is pretty substantial, knowing that SA usually not able to touch for most people, esp until 55 when withdrawal is possible.

 

oh? no more SA aft RA is created? hmm...that will be SA% will go into OA? becos MA is already full?

if 25 today ... 30 years later minimum sum is $380k with 3% yearly inflation rate

$400k-$380k = can cash out $20k only ... muahahahahaha

a wise man said ... you must reach the goal post fast before someone move the goal post again

else what you see is what you cannot touch

 

aiya, I tot I score hat trick aldy! lol!

 

ya, the goal posts will always keep moving further and further away.

 

see no touch.

its estimated from age 25 to 55 using 6k salary per mth x 12 mths (ordinary wages) + 5mths max bonus (additional wages) at current SA contribution rates.

 

also include annual 4% interest on SA savings over the 30 year period.

 

Oh, I forgot about MA hit max. At current %, 5 yrs into work life by 30yo, MA will be max liao, excess will flow into SA.

 

So from 30-55, the SA is greatly increased.

 

Estimated 800k in SA at 55 yo including yearly 4% compounding.

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Enye

Enye

Hypersonic
(edited)

erm... OA best usage is to pay for property leh, imo la...

 

I know min sum will increase w inflation. assuming the figures don't change, than the amt that is able to be withdrawn from SA is pretty substantial, knowing that SA usually not able to touch for most people, esp until 55 when withdrawal is possible.

 

oh? no more SA aft RA is created? hmm...that will be SA% will go into OA? becos MA is already full?

 

aiya, I tot I score hat trick aldy! lol!

 

ya, the goal posts will always keep moving further and further away.

 

see no touch.

 

Oh, I forgot about MA hit max. At current %, 5 yrs into work life by 30yo, MA will be max liao, excess will flow into SA.

 

So from 30-55, the SA is greatly increased.

 

Estimated 800k in SA at 55 yo including yearly 4% compounding.

 

yes SA% even MA% will go into OA if MA and RA full

 

MA max and SA at min sum or above, MA will overflow into OA

 

MA will also be used for shield plans yearly, so not every month will have overflow

Edited by Enye
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Donut

Donut

Supercharged

You just named 3 of my favourite dishes lol

 

u eat these 3 dishes for too long, the only best friend u get to see often is the doc.........

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Spring

Spring

Moderator

u eat these 3 dishes for too long, the only best friend u get to see often is the doc.........

 

Haha agreed!

 

Char Kway Teow they don't make it like they used to so I don't eat much of it these days. Nasi Lemak and Roast Pork, I do eat maybe 3-4 times a month so think it's quite balanced I hope [grin]

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Donut

Donut

Supercharged

Haha agreed!

 

Char Kway Teow they don't make it like they used to so I don't eat much of it these days. Nasi Lemak and Roast Pork, I do eat maybe 3-4 times a month so think it's quite balanced I hope [grin]

 

we all know these days, young ppl can kena diseases that were used to be for aged people.

 

i got a young relative, only about mid 20s. overweight, eat lots of oily food. Yes, roast pork and pork belly are his fav. 

 

On New year day, he kena stroke.  its a mild one, but its enough for him to be rushed to hospital.  He spend his New Year celebration on hospital bed for one week.

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Ben5266

Ben5266

Supercharged
  • Author

we all know these days, young ppl can kena diseases that were used to be for aged people.

 

i got a young relative, only about mid 20s. overweight, eat lots of oily food. Yes, roast pork and pork belly are his fav.

 

On New year day, he kena stroke. its a mild one, but its enough for him to be rushed to hospital. He spend his New Year celebration on hospital bed for one week.

Spring plays tennis Everyday. Burns all the fats.

He is as slim as andy Murray.

Just a bid older only.

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Spring

Spring

Moderator

we all know these days, young ppl can kena diseases that were used to be for aged people.

 

i got a young relative, only about mid 20s. overweight, eat lots of oily food. Yes, roast pork and pork belly are his fav. 

 

On New year day, he kena stroke.  its a mild one, but its enough for him to be rushed to hospital.  He spend his New Year celebration on hospital bed for one week.

 

Ok thks for the warning bro!!

I do need a wake up call on food intake at times as I'm not the most disciplined person around as far as food is concerned lol

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Spring

Spring

Moderator

Spring plays tennis Everyday. Burns all the fats.

He is as slim as andy Murray.

Just a bid older only.

 

Not slim lah bro and definitely can't compare with Andy Murray haha!!

And much older not abit [laugh]

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Hamburger

Hamburger

Hypersonic

we all know these days, young ppl can kena diseases that were used to be for aged people.

 

i got a young relative, only about mid 20s. overweight, eat lots of oily food. Yes, roast pork and pork belly are his fav.

 

On New year day, he kena stroke. its a mild one, but its enough for him to be rushed to hospital. He spend his New Year celebration on hospital bed for one week.

Probably not the oily food that caused it. Its the carbo that he ate along with it.

 

Carbs like money, the roots of all problems.

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Kusje

Kusje

Supersonic

 

 

Men auto lugi 5 years of their minimum sum to CPF Life under the default scheme...

 

Aren't the payouts for men higher?

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Sturtles

Sturtles

6th Gear

 

pay cash is the BEST [thumbsup]
 
1. if you pay $1k every month cash ... you have less disposable income
2. force saving in cpf and force cutdown expenses on take home pay
3. every year see CPF account ... feel so lich !!!
 

Why Singaporeans Should Stop Using Their CPF Money To Pay Their HDB Home Mortgage

 

 

 

I guess it depends on the scenario and circumstance of individual families.

 

For your example, people who are earning well, with ability to save, and not investment savy suits your example most.

 

For others who earn less, reducing disposable income affects them greatly, unless they are already saving at least the installment sum for retirement, and if they are no good at getting better returns from CPF rates

 

I would think for majority in the 20s to early 50s, the family commitment would always mean cash on hand is a better choice given the flexibility to use for good and bad reasons.

 

So no.. I do not agree with your linked example

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Jman888

Jman888

Moderator

 

pay cash is the BEST [thumbsup]
 
1. if you pay $1k every month cash ... you have less disposable income
2. force saving in cpf and force cutdown expenses on take home pay
3. every year see CPF account ... feel so lich !!!
 

Why Singaporeans Should Stop Using Their CPF Money To Pay Their HDB Home Mortgage

 

 

 

good idea, then COE won't be so high  [laugh]  [laugh]

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Enye

Enye

Hypersonic
(edited)

 

pay cash is the BEST [thumbsup]
 
1. if you pay $1k every month cash ... you have less disposable income
2. force saving in cpf and force cutdown expenses on take home pay
3. every year see CPF account ... feel so lich !!!
 

Why Singaporeans Should Stop Using Their CPF Money To Pay Their HDB Home Mortgage

 

 

the "opportunity cost" in using cpf oa to buy property is already manifested as accrued interest

 

still must pay back when sell

 

seems like the author doesn't know this

 

:D

 

 

Edited by Enye
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Kb27

Kb27

Supersonic
(edited)

CPF liberalized to allow buying property.

Property market including hdb chiong to the roof.

 

Without CPF liberalisation, property price won't be what it is today....and you're still have lots of money in CPF, which is the original aim of having money when you retire.

 

Now it's all gone, and became a Ponzi scheme.

Edited by Kb27
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