Can YOU REALLY get to "CPF Full Retirement Sum (FRS)" with MEDIAN INCOME?
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- เผยแพร่เมื่อ 1 เม.ย. 2024
- Josh Tan built this google sheet for you to try on projected CPF with median income docs.google.com/spreadsheets/...
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Getting to CPF full retirement sum FRS is an important milestone to ensure you have a good first layer of retirement income. Today, I'd simulate if you had median income in Singapore all the way, could you reach retirement.
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Josh Tan built this google sheet for you to try on projected CPF with median income docs.google.com/spreadsheets/d/1w0wMq1IuBKlu6WUBxpwDkPEF5Un236_uzJ7z-Hk6IsY/edit?usp=sharing
To see updates and polls, join my TELEGRAM "Josh Tan Investment Official Group" here
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Thanks for the insightful video Mr Josh!
No probs. Share with someone who should see too k
Great video Josh, I believe more people needs to be educated about such CPF numbers
Thanks Chris, yes indeed!
Great video as always 👍
Thank you for the high praise
Please make another video where the OA will be used to buy house. So will it be possible to get FRS?
solid advice Josh!
Big thank you 🙏
Full FRS will only provide you with $1600+/mth when you reach 65. Imagine the cost of living by the time you reach 65..😅
just divided the amount to half you will be able to estimated your purchasing power in 20 years down the road.
My CPF total interest gain (OA+SA+MA) from 2009 to 2023 was more than 220k; CPF paid for my transfer to RA.😅
No fix rule but still a good basic layer to construct
continue work hard, save and invest diligently is best strategy.
Does the calculation include any bonuses? Thanks for the hard work drilling down the figures. Great work.
Thank you for the high praise. Median income includes bonus inside already actually.
This video is good. My OA had been fully utilised for housing. Hence I can only depend on SA to hit FRS.
Thank you for the praise. Do share w a friend who should see too 👌🏻👍
a 4bedroom BTO is now about $600k for matured estate. compound with mortgage interest it will be about $1.0-1,2M.. not much OA is left to transfer to SA.
There are also some that are $400k-$500k
There are also gov subsidies not factored in. I think it could still work 👌🏻
Thanks for the great sharing 😊 At 30s, if let's say, one have some spare cash of $20k to grow wealth, would you recommend to top up the full $8k to SA and then invest the rest?
Spare 20k allocate 8k on first thought seems abit scary. SA amounts not liquid.
I have 110k in sa. Can I invest or leave it for normal 4% cpf interest? Pls advice
Max cpf contribution is capped at $8000 per mth or $102K annually.
Both. The 102k is annual ceiling which factors in bonuses. I suspect this will be raised soon
Need to consider medisave account also. Will reach BHS after working 10+ years and balance will flow to SA..
Very good point
That is extra , unless the person in median income range and did not use the MS for own self or parent
Should compare against the median income statistics from five years ago if you really want to compare the same cohort across time. Older generations have lesser degree holders which will skew the results if you compare different cohorts within the same year’s median income.
Median income increased at average 3.4%pa over last 10y. Factored in
nice analysis. its just very disappointing that for ERS which is now 4x, our max SA cap is still 2x. i think after doing a projection it seems hard to even attain ERS with max SA at age 30+. CPF should consider allowing those who wan ERS to contribute more to SA during our younger days.
Guess the policies are for the ERS is to be filled w OA
Yes, if CPF pays 6% interest like what CPF did in the 70s and 80s. CPF members will have 120-130% more CPF balance by age 65.
This video miss out the MA contribution. At certain year down the road when MA hit the ceiling, contribution to MA will flow to SA which speed up the SA amount
Yes agree on your point raised
Good point. But the video at least tell us median income alone is still not enough to reach FRS in CPF SA. Need some intentional intervention to change that.
Saw this comment and faster topped up MA
U should have factor housing needs to be more realistic. U can also simulate when medisave will be capped, medisave money will goes to SA. Nowadays alot pple hit medisave capped at 30+. Hence retirement account is going at turbo speed. 😄
Always room for improvements 👌🏻
firstly how many starting salary at $4k eventually at 55 salary hit $12k? if you are median incomer now doesn't mean you will be median incomer at 55. and what is the median income growth in the last 10 years? the growth rate is it the same as your projection?
Average growth is 3.4%. Of course median income now doesnt mean median income in future. Strive to get improvements in to get growth 👍🏻
Median- 6th person out of the group of 11 people.
Ah ya =P
What about the MA - should it flow to SA when capped?
Yes it flows to SA. IF SA full, the excess MA flows to OA
Hope it answers k cya around =)
Well, if need to buy house, it will take more years or even can’t reach FRS especially brought expensive BTO.
Can reach. The $700k projected by 55 is for 1 pax. 2 pax 1.4m budget
And loan can be to age65
If take loan 25 years, the cost of flat could be double the amount u paid right?
IMO (not financial advice), better to skip hitting FRS altogether & just "religiously" DCA CPF OA into Endowus' Amundi Prime US Fund that tracks S&P500 once CPF OA is above 20k so that u get better returns. + u can always sell & move the money back into OA for housing, education etc. so there is a form of "liquidity" there.
Yes, u take on investment risk but even CPF policies can change with the recent debacle of CPF SA closure at 55. What if next time, the CPF LIFE payout age starts at 70 or even 75? Then best to have money outside of the system & invest independently.
Don’t think the can change age easily without going through parliament debate. This will affect livelihoods of many .
@@MARS-ob7eg what is there for debate when everyone vote the white like a cult? 🤣
Hi. Why there is no MA? Assume your MA is full and the funds flow to SA to consider.
Yes good point
@@joshconsultancy thank you for reading my comments.
This is why I don’t depend on CPF to take care of my finances when I am old. Something needs to change. FRS is starting to look only for the rich but as always solid content.
Thank you for the high praise 🙏
If don’t depends on CPF and instrument of risk free can be consider?
Thought i read in the news just several months back, that the median income is like $8.1K?
Confirm not
Side topic if you don't mind. For the MRSS, are unemployed eligible for the scheme. Are you aware & can advise? Can't find the answer anywhere..... thanks
To me, CPF is just a bonus/ Voucher.
Totally cannot rely on it and neither should you invest/ top-up in it.
neither will i touch my SA to invest, take the 4% as a bond coupon investment.
Great educational vid as always.
Thank you for the high praise
Take care Singaporeans.
SA compounds faster than OA
median is 5th out of 9 not 10
ok ya =P
I think the median income look like is at the higher end
It’s a national published statistics, should be accurate
Of coz we can just robbed any of the bank 🤭