Are you sure CPF LIFE is enough for Retirement? Really?

SG flagMany Singaporeans are still paying for their own properties, the vast majority are still paying for their HDB residential flats, Executive Condominiums (ECs), private condominiums and landed properties and some have even bought commercial properties for investment purposes. Many people use all their CPF Ordinary Account funds to pay their monthly mortgage installments, with nothing much left at the end of the month.

Seriously, do you think you can save up the full retirement sum or basic retirement sum when you reach age 65?

You may not have put in much thought about this because you have been busy working your butt off to pay for all the bills in your family. But do set aside some time now to think about the future and that’s really important because you do not have time to navigate when you are in your late 50s or early 60s!

CPF Full Retirement Sum is for people who turned 55, a table below shows the amount from 1 July 2003 to 2015: It is increasing every year! What about 20 years from now? You can just imagine the huge amount in 20 years time…In 12 years the Full Retirement Sum has DOUBLED from $80,000 to $161,000!!!

55th birthday on or after Full Retirement Sum
1 July 2003 $80,000
1 July 2004 $84,500
1 July 2005 $90,000
1 July 2006 $94,600
1 July 2007 $99,600
1 July 2008 $106,000
1 July 2009 $117,000
1 July 2010 $123,000
1 July 2011 $131,​000
1 July 2012 $139,000
1 July 2013 $148,000
1 July 2014 $155,000
1 July 2015 $161,000

To factor in inflation and rising lifestyle expectations, the Basic Retirement Sum ( you have to pledge your property to CPF Board) is set to increase.

             ​ Basic Retirement Sum​
Age 55 in 2016 $80,500​
Age 55 in 2017​ $83,000
Age 55 in 2018 $85,500​
Age 55 in 2019 $88,000
​Age 55 in 2020 ​$90,500

People who are aged 55 this year and have only $80,500 in their Retirement Account will receive $660 – $770 a month from age 65… Is that enough? Ask yourself this brutal truth, is this enough? Obviously not!  After paying for utility bills, phone bills, groceries, transportation (public), you will have nothing left!!!

Now you have seen what the aged 55 people are going through, please think about the future, your future. Do you want to step into the same shoes as theirs? If not, do something different now!

Wake up from your financial slumber and meet a qualified independent financial adviser representative like me as soon as possible. call me now at 90011082 or if you’re shy please email to me at stephenmok@ippfa.com and I will call you back.

Let’s make 2016 a year that will change your financial future. Make it count… wake up now. Start a savings plan that will keep your head above the rising tide of inflation… That’s about 3% per year!

See you soon!

 

 

 

 

Colorectal Cancer – Chinese Men Beware!

colonColorectal or Colon Cancer is the most common cancer found in Singapore! Number 1 for men and Number 2 for women. Chinese men are most vulnerable, Malay second and Indians third. Genetics, lack of exercise and our high protein/fat diet with deep frying and BBQ meat plays a part too. There goes my “bak kwa” (bbq sweet pork/chicken sliced)… haha….

This is the information I gathered from a talk given by Dr Ooi, a Consultant Surgeon from Mount Elizabeth Hospital at an insurance company’s training seminar this week.

So… Chinese men aged 40 and above… beware… recommended to screen your colon regularly… Prevention is better than going for surgery. It is less painful and cheaper!

There are many articles in the internet about colorectal cancer just by Googling it so I will not elaborate too much here. But here is a very good article by Mayo Clinic.

The question to ponder here is, are you able to pay for the surgery costs should the unfortunate happens? When you stop work due to this illness will you have enough savings to pay for all the family expenses? How long will it last? 3 months? 6 months or 6 years? Remember this, you have to continue paying the premiums for  your hospitalisation insurance policy even when you have been diagnosed with this illness. There is no waiver of premiums!

I suggest you take a good look at what you have with a qualified expert rather than ask your colleague or a close friend. Please don’t get them involved because if they say its okay but you end up in financial trouble, who are you going to blame? Yourself…

To review your insurance policies, please contact your trusted independent financial adviser representative or call me at 90011082 for a review now.

I will be able to meet you before Chinese New Year (CNY) so be quick to pick up your phone and call me. I still have a few slots available before CNY… Otherwise, wait till the CNY festive week is over. Cheers and stay healthy!

Have a good week ahead.