Time to document my CPF retirement goal update. I will only be sharing my CPF Special Account here as I find the balances in the CPF Ordinary Account ("OA") and Medisave account are irrelevant for my retirement income planning. Reason being that for CPF OA, amount here will eventually be fully utilised to pay down my housing mortgage as I do not plan to work till age 65 years old and targeting an early retirement. As for Medisave, my parents do not have much medical insurance coverage and I think that I will most likely exhaust all the balances here into their future healthcare. I have seen my cousins Medisave being drawn down to zero for medical expenses for medical payment on behalf as their parents similarly do not have much health insurances or sufficient medisave-this issue always reminded me of the Sandwich Generation video from Income Ltd in 2019.
1.Target for Future Retirement Account
Currently, my special account has a balance of S$266K as of 2 January 2025. My personal CPF special account target is for it to reach S$426K (based on the new 4 times basic retirement sum 2025). Even thought I think I can only achieve 3 times basic retirement sum, think it is good to have a higher benchmark target of S$426K.
2. Interest Income- S$10.8K for Special Account
Hopefully, our Singapore government maintains the 4% risk free rate for all CPF holders for the next decade. With a passive S$10.8K of interest income being credited, this effectively mean at least another S$100K growth in the CPF Retirement Account every 10 years.
Parting Thoughts
I think that it is hard to beat a risk free 4% offered by the CPF board backed up by our Singapore Government. So I am contended to just let it grow gradually by itself instead of taking out for balanced fund investments albeit very tempted at times to do it. I will do my own retirement planning properly....I will be the last Sandwich Generation!
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