For those who wish to retire back in Singapore, do note that the CPF minimum sum has been raised again.
To get an idea of the projected minimum sum for the next 30 years, I found this person blog useful and he predicated quite accurately the minimum sum for 2014 based on 2013 statistic. I used his blog as a guide to get an idea of the future minimum sum. http://madstranger.blogspot.sg/2013/05/cpf-minimum-sum-for-jul-2013-and....
For the average Joes like us, if we don’t make our backup plans, we will be “neither here nor there”. Similarly, if you migrate to Australia and don’t like it, better go back early to Singapore and work hard to accumulate your CPF, otherwise, you will join the “neither here nor there” group.
But there is also another group called, “I know, I know”. This group of people have the mindset that is the toughest to convince and change.
How to explain? Maybe I write a story and see if you understand.
For example, a conversation between me and my friend started. Let call me Joe and my friend Mr SY.
Joe: Hey, SY, your car seems to be leaking some engine oil. You may need to fix it and monitor it properly, otherwise it will stop running one day. If you are not sure, here is my mechanic name card and he can sort it out for you. Don’t leave it at the last stage.
SY: I know, I know.
6 months later,
Joe: Hey, how is car engine, fixed it?
SY: Not yet.
Joe: You have to fix it before it break down.
SY: I know, I know.
1 year later,
SY: Hey Joe, what is the mechanic name, my old car has fumes coming out and I can’t start my car.
Just like this, if you don't plan early, you may be caught in a really tough spot. With CPF minimum sum raised again, how sure can you be that your savings will be enough for you to be able to withdraw when you turn 55? Will you be forced to work until the draw down age?
What if the government raises the retirement age even further? Are you going to be stuck working into your 70s?
SGinMelbourne
TRS Contributor