What the CPF Minimum Sum Changes Really Mean for You

[Arcachon]

In 2016, at 55, he tops up his Retirement Account with another $91,500.

This leaves $241,500 in his Retirement Account.

In 2026, at 65, he starts getting $1900 for the rest of his life. Not that he really needs it.

http://blog.moneysmart.sg/saving/cpf...changes-means/

[Arcachon]

I have a fully pay HDB 5 room can sell for SGD 670,000, rent out for SGD 2500. I am 51.

Got 2 Condo, LTV 65%, rent out one for SGD 4200.

What are my option.

[Arcachon]

Option 1 . Sell HDB at 55 buy two retirement account and get 1900x2=3800 a month at 65.

[Kelonguni]

Bro, 95% sure your position is very safe and good. But these options not very realistic for someone starting to buy HDB now.

There is also a small risk of the following combination that constitutes the 5% risk.

1. MND bans hdb subletting.

2. Interests spike.

3. SARS level event.

But 95% safe is still excellent. Just hard to emulate and not that relevant for the starters.

[Arcachon]

There is also a small risk of the following combination that constitutes the 5% risk.

1. MND bans hdb subletting. Not Possible - 48,120 units can share how you find the number of units to displace HDB subletting.

http://www.todayonline.com/singapore...ved-subletting

2. Interests spike. Not Possible - You are now the chairman of MAS what will you do when ECB print 60 Billion a month.

http://www.bloomberg.com/news/articl...-euros-a-month

3. SARS level event. Possible - When is the last time you visit the Hospital in Singapore, you should be able to answer whether we are prepare after visiting the Hospital.

[teddybear]

I believe the article got some mistake...
because Basic Retirement Sum is same as old scheme (not new changes), where you can pledge your property and you just need to satisfy half of CPF Minimum Sum!

The new CPF Life recommendations eliminate CPF Minimum Sum because the figure itself at $161,000 is already very big (and by saying Basic Retirement Sum is enough and that figure is much lower hence looks nicer and easier to accept by commoners, and can help to relieve criticism that CPF Minimum Sum is already so high and few people can achieve that figure by 55 years old!).

I never like CPF Life because ultimately I believe the return from this CPF Life annuity will be quite low given the investment track records that we saw!

In addition, for transparency of the scheme, CPF Life should be separated as a separate entity for management and their accounts should be reported via an annual report every year! As of now, the scheme lacks transparency. (The same should be done for Medishield Life!)

However, having said that, CPF Life is most useful for people who don't know how to invest and manage their finances, and there are many such people around!

In 2016, at 55, he tops up his Retirement Account with another $91,500.

This leaves $241,500 in his Retirement Account.

In 2026, at 65, he starts getting $1900 for the rest of his life. Not that he really needs it.

http://blog.moneysmart.sg/saving/cpf...changes-means/