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Talking Point >>> Is your CPF enough for retirement?

Wt_know

By Wt_know,
in Investment & Financial Matters

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Arogab

Arogab

Turbocharged
  On 9/6/2021 at 11:05 AM, Throttle2 said:

Dont know what you talking about leh.😁

 

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Haha, but you give me that smiley face. To be more direct, those people who don't take it seriously and got no saving, sorry for them, I don't pity them. 

But there is really not a lot of them. even low paid families got some saving. Just how to lift them up only

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Arogab

Arogab

Turbocharged
  On 9/6/2021 at 11:10 AM, Kopites said:

Quote

Do not save what is left after spending, but spend what is left after saving.

Unquote.

Don't need to keep track expenditures.

 

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An old lady once told me, "It is not how much you earn, it is how much you save"

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Arogab

Arogab

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  On 9/7/2021 at 1:54 AM, Kopites said:

Old lady your elder?😁

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  On 9/7/2021 at 1:56 AM, kobayashiGT said:

My mother also told me the same thing.

You met my mother before? hahahahahahha.

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This was many years ago, 2010. One friend's mother, she is 83 liao and was a cleaner that makes about $1500 monthly. My friend gives her $500 monthly since I know him. When my friend was overseas, his cousin died suddenly and the old lady ask me to go help her get $3000 from the ATM. I saw over $300k in the balance and told her she should not let me do the withdrawal and let me have the PIN number. I also told her she should change it. 

That is where the topic was spoken. So I always tell myself to count, plus count what I have to invest.

Of course my mother will always tell me to save more money even till the day she was gone

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Voodooman

Voodooman

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  On 9/5/2021 at 10:05 AM, NightWind said:

I saw several articles that set a minimum cash needed of SGD1.3mio.  Personally i would exclude CPF and assume that the house and car are all paid up.  

https://www.straitstimes.com/business/need-13m-to-retire-depends-how-you-live

I dont think we can rely safely on CPF as its basically money we cant access directly and the rules change all the time.  

So i would rely only on actual SGD1.3mio cash in bank per person. And this assumes you retire at age 65 and expire by age 80 and live modestly in Singapore.

If we retire in Koh Samui or Lombok or Bali we need alot less cash. Singapore is a very very expensive place for the average joe to retire in. But the same average joe can buy a nice villa and live like a King in Koh Samui, Phuket, Lombok, Bali.

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Why buy? Just rent and stay for 3-6 months at each destination and move around. Besides SE Asia, places like Portugal, Spain, Taiwan are also reasonably good and cheap for 3-6 months stay. 

10 years ago, $1m or thereabout was a big amount but it may not be  enough for a comfortable retirement these days. With inflation expected to accelerate going forward, it is becoming very hard to plan for retirement.  
 

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NightWind

NightWind

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  On 9/7/2021 at 2:17 AM, Voodooman said:

Why buy? Just rent and stay for 3-6 months at each destination and move around. Besides SE Asia, places like Portugal, Spain, Taiwan are also reasonably good and cheap for 3-6 months stay. 

10 years ago, $1m or thereabout was a big amount but it may not be  enough for a comfortable retirement these days. With inflation expected to accelerate going forward, it is becoming very hard to plan for retirement.  
 

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Yes we r looking at rental in Samui as the Covic rentals have fallen alot.  And we r not tied down to any one place.

I agree $1mio is not enuff for retirement here. Especially when a sizeable portion of our money is locked up in CPF and we cant have immediate access to cater to off shore retirement needs.

The whole system is designed to handcuff singaporeans and prevent a flight of assets abroad. Very sad.

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Voodooman

Voodooman

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  On 9/7/2021 at 2:56 AM, NightWind said:

Yes we r looking at rental in Samui as the Covic rentals have fallen alot.  And we r not tied down to any one place.

I agree $1mio is not enuff for retirement here. Especially when a sizeable portion of our money is locked up in CPF and we cant have immediate access to cater to off shore retirement needs.

The whole system is designed to handcuff singaporeans and prevent a flight of assets abroad. Very sad.

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Actually after setting aside the min sum, the rest can be withdrawn at 55, if you deem fit. i think CPF life is a reasonably good scheme. 

So the problem is not so much the current rules but adequacy of CPF as main retirement plan for the middle class given the salary cap of $6k and rising inflation. Doesn't help that most of those retirement funds for the average Joes are in their primary residence. 

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Voodooman

Voodooman

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(edited)
  On 9/7/2021 at 1:32 AM, Arogab said:

An old lady once told me, "It is not how much you earn, it is how much you save"

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I think that is not exactly true.  When you are making a subsistence wage, you can't save much. So how much you earn is as important as how's much you save.

The trick is to earn more but still maintain a frugal lifestyle. That is really hard. I see that in the older generation. Few younger people have that type of discipline. 

Edited by Voodooman
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Wt_know

Wt_know

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(edited)
  On 9/7/2021 at 3:24 AM, Voodooman said:

Actually after setting aside the min sum, the rest can be withdrawn at 55, if you deem fit. i think CPF life is a reasonably good scheme. 

So the problem is not so much the current rules but adequacy of CPF as main retirement plan for the middle class given the salary cap of $6k and rising inflation. Doesn't help that most of those retirement funds for the average Joes are in their primary residence. 

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the challenge is spouses tied up majority of their OA into their "single" property for living and not for investment

when they see some "spare cash" in cpf ... itchy backside and upgrade liao 

at 55-60 ... their OA is near kopi-o kosong ... 

 

Edited by Wt_know
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Arogab

Arogab

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  On 9/7/2021 at 3:29 AM, Voodooman said:

I think that is not exactly true.  When you are making a subsistence wage, you can't save much. So how much you earn is as important as how's much you save.

The trick is to earn more but still maintain a frugal lifestyle. That is really hard. I see that in the older generation. Few younger people have that type of discipline. 

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Of course I know what you mean and when those words were spoken to me. The old lady as I have estimate could have save as much as 80% of what she earns. I then understand the meaning and give my own self a new understanding and new target for myself to make what I am today. 

The phrase is given. If a person die die just think you can earn little and save more, then the understanding is not there liao.

😥 To be honest, I am only saving as much as 30% of what I make only

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Throttle2

Throttle2

Supersonic
(edited)
  On 9/7/2021 at 2:56 AM, NightWind said:

Yes we r looking at rental in Samui as the Covic rentals have fallen alot.  And we r not tied down to any one place.

I agree $1mio is not enuff for retirement here. Especially when a sizeable portion of our money is locked up in CPF and we cant have immediate access to cater to off shore retirement needs.

The whole system is designed to handcuff singaporeans and prevent a flight of assets abroad. Very sad.

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Actually i dont quite understand you.  
CPF after 55, take as you wish once RA is catered for. 
doesnt handcuff anyone or anything.  Access is easy and immediate.

its the best program govt has for us.  

if you have loans and commitments then you are handcuffed

if you are talking about before 55, then its good you get handcuffed.
keeps people planted firmly on the ground with forced savings.

Cpf is just a last resort thingy. I wouldnt rely on it for retirement, its just a booster, that all.

 

Edited by Throttle2
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BanCoe

BanCoe

Hypersonic
  On 9/7/2021 at 12:22 PM, Ct3833 said:

For reference.

 

https://sg.finance.yahoo.com/news/highest-paying-jobs-singapore-2021-022931331.html?guccounter=1

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Servers (Unix/Linux/Wintel)

$80,000-$120,000 ( i think i will upgrade my table wiping job to that of a server ) ......... now that everyone is returning trays themselves and its a back breaking job too 😂   

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Throttle2

Throttle2

Supersonic
  On 9/8/2021 at 9:08 AM, BanCoe said:

Servers (Unix/Linux/Wintel)

$80,000-$120,000 ( i think i will upgrade my table wiping job to that of a server ) ......... now that everyone is returning trays themselves and its a back breaking job too 😂   

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$80-120k is entry level nowadays leh…..😅

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