Tag: life planning

Retiring in Singapore – how much do you really need?

August 24th, 2014   •   2 comments   

Retiring in Singapore - PM Lee Hsien Loong
PM Lee at National Day Rally 2014 (courtesy of Prime Minister’s Office)

Prime Minister Lee Hsien Loong’s recent National Day Rally speech got me thinking about the challenges of planning for one’s retirement. Are Singaporeans aware of how much funds they need to retire comfortably? Do they know what their true retirement living costs will be?

I like how PM illustrated the case of a fictitious 54 year old senior technician named Mr Tan, and how his estimated living costs of $2,000 per month could possibly be met. Through the example given, PM showed that a CPF Minimum Sum of $155,000 – to be adjusted to $161,000 next year – isn’t an unreasonable amount to be considered in one’s Retirement Account (RA). In fact it can only cater to a very basic lifestyle and is probably insufficient for those who retire earlier (at say 55 rather than 65 years of age).
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Conversations on CPF

May 29th, 2014   •   no comments   

Singapore’s Central Provident Fund (CPF) is certainly in the news these days.

The buzz began with recent announcements made on the rise in the CPF Minimum Sum, our President’s address on the review of CPF at the opening of Parliament, a series of blog posts by a certain blogger, and the accompanying lawsuit of the blogger by the Prime Minister. As you’d imagine, lots of bloggers have weighed in on both the positive and negative aspects of CPF (you can find a tonne of them in SG Daily here). The latest is a blog post clarifying what CPF is on The Ministry of Manpower’s blog, followed by assurances that the Government is looking to enhance the CPF Life annuity scheme.
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