Based on the article by "A Singaporean in Australia" (http://wwwasingaporeanson.blogspot.com.au), someone made a spreadsheet that will predict your CPF minimum sum when you hit 55.
https://docs.google.com/spreadsheet...0MgURoize-xTu1ysvU2nvA/htmlview?usp=drive_web
Reality hits hard when you realized how much the minimum sum will be and how unlikely you will be able to see your CPF sum return to you. Based of $120,000 in 2003 (used to be a target of $120,00 by 2013)..
It also got me thinking
1. Why did the government use a 6% inflation rate? Neither our wage, bank interest or CPF rates are anywhere near that.
2. CPF contribution is capped at $1,575 based on the maximum $4,500. How will the younger generation ever be able to accumulate enough to keep up with this rate?
By the time my son reaches 55, his CPF minimum sum would be a whopping $3mil!
https://docs.google.com/spreadsheet...0MgURoize-xTu1ysvU2nvA/htmlview?usp=drive_web
Reality hits hard when you realized how much the minimum sum will be and how unlikely you will be able to see your CPF sum return to you. Based of $120,000 in 2003 (used to be a target of $120,00 by 2013)..
It also got me thinking
1. Why did the government use a 6% inflation rate? Neither our wage, bank interest or CPF rates are anywhere near that.
2. CPF contribution is capped at $1,575 based on the maximum $4,500. How will the younger generation ever be able to accumulate enough to keep up with this rate?
By the time my son reaches 55, his CPF minimum sum would be a whopping $3mil!