Is CPF Enough for Retirement?

A study done by two National University of Singapore (NUS) researchers, Associate Professors Chia Ngee Choon and Albert Tsui, has come to the conclusion that “even after allowing for pre-retirement withdrawals for housing finance, the current CPF system is able to provide entrants to the workforce today with adequate retirement savings, as long as members work consistently and choose a housing type that is within the financial means”.

The study was commissioned by the Ministry of Manpower (MOM) and the full report can be downloaded here:

Adequacy of Singapore’s Central Provident Fund Payouts: Income Replacement Rates of Entrant Workers

However, do note that the CPF savings are only adequate if :

1) A prudent housing level is selected
2) Both husband and wife are working

There’s also other assumptions made of various parameters in the study.

Would you consider getting (at age 65) 60-70% of your (age 55) income adequate?

I think the question of whether your retirement income is sufficient has to take into account the purchasing power of your money, and not just the actual dollars you receive. Unfortunately, this is an angle that the report has failed to address.

Personally, I will definitely make sure I have other sources of retirement income other than my CPF!

Prudent housing choices ensure enough CPF savings for retirement: survey (CNA)

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