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I always assumed my CPF will be tied up until I die, the govt keeps moving the goalpost.
ReplyI bet many people will be shocked at how much they can withdraw when they hit 55. By 2013, many can only take out $5000 when they celebrate their 55th birthday. Drawdown Age is also now increased to 65. It will be targeted to be increased to 67 or 68 by 2020.
So if you don’t “save” enough in your CPF to hit *beyond* the Minimum Sum *and* the Medisave Minimum Sum, then you can look forward to only $5K to last from 55 yrs old to 67 yrs old.
From CPF website:-
Q: Why must the drawdown age (DDA) be linked to the re-employment age?
A: With increasing longevity, the DDA has to be increased in order to help members’ CPF savings last longer. To help members better cope with the increased DDA, we need to help them work longer. Therefore raising the DDA is linked with the re-employment age.
So govt is telling you that in order to help (force?) you work longer, govt HAS to hold on to YOUR money for longer. PAP is right when they tell you no retirement in Singapore, work till you drop dead.
For those who are able to save at least 30% of their take-home pay in cash, for at least 20 years before retirement, then no problem. Can still enjoy retirement.
ReplyMy baseline scenario for retirement planning is to assume we can withdraw nothing at age 55. I just treat CPF as a compulsory annuity.
ReplyCompulsory annuity with no guaranteed payout and no laws (e.g. Insurance Act) in place to regulate it!
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