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!

 

 

 

 

Can You Afford Your Favourite Prawn Mee in 20 Years?

Prawn NoodleMany Singaporeans enjoy a hot bowl of delicious prawn noodles, I know because I see long queues at prawn noodle stores everywhere I go.  With gravy soup or dry, you name it we have it in Singapore. What does financial planning got to do with prawn noodles? The prices keep going up!!!

20 years ago a bowl of prawn noodles cost $1.50, now the cheapest I can find costs $3… so 20 years from now it will probably cost $6. Nowadays a bowl easily costs $4 to $5 and even $10 for large prawns in your bowl. If you are a die hard prawn noodle fan you will pay for it even if it cost $20 a bowl.

During the festive seasons, prices of raw prawns skyrocket to $40/kg or more from the usual $12 to $15/kg so I won’t be surprised to pay $20 for a bowl of delicious prawn noodles.

What I am talking about is PRICE INFLATION of goods in Singapore. Everything will cost more in 20 years. Even a 4 room HDB flat costs $320,000 or more compared to $160,000 20 years ago… That’s doubling in 20 years. That’s inflation compounding at 3.6% p.a.

Can you afford the same lifestyle in 20 years? Can you afford the same bowl of prawn noodles after you retired? What plans have you made to ensure that you will succeed in your retirement planning? Are you sure you will definitely achieve your financial goals at age 65?

Even if you meet the CPF Life sum of $139,000 you will only receive $868 to $948 a month for the rest of your life from age 65. Do you really think this amount will help you live comfortably? Will you be dependent on your children, that’s if you have children? Many couples choose to be childless nowadays. Enjoy now, worry later… how sad.

One day, you WILL have to retire. That’s 100%. Even if you want to continue working, who will employ you at age 65? Any employer will prefer a younger adult with less salary than an older employee with a much higher salary. That’s the reality of life here. So don’t take for granted that your job is here to stay. One day, even your company will move to other countries to lower their operating costs.

Still want to eat your delicious bowl of prawn noodles?

Wake up and start saving wisely. You have to talk to a professional financial adviser who will guide you and help you achieve financial success at age 65. Don’t take any chances by leaving all your money in the bank earning less than 1% p.a. compared to the inflation rate of 3.6% p.a.  Your money will rot away its financial strength in the bank!

Contact an independent financial adviser representative now! You can also call me at 90011082 for a appointment next week. I have three slots left, first come first served. Sorry I don’t work on weekends.