Jan 23, 2007
Ongoing review to help grow CPF nest egg
By Sue-Ann Chia
A STUDY to help Singaporeans earn higher returns on their Central Provident Fund (CPF) savings and enlarge their retirement nest egg is still ongoing, said Manpower Minister Ng Eng Hen.
Only four in 10 active CPF members - those earning an income - who turned 55 in 2005 had the minimum sum of $90,000 in their CPF at the end of last year.
The minimum sum is for retirement needs. For instance, a CPF member will receive monthly payments from his minimum sum when he turns 62, until the funds run out.
But more than six in 10 would have accumulated the minimum sum, if not for the fact that members can withdraw half of their CPF balances when they turn 55, said Dr Ng.
Responding to Madam Halimah Yacob (Jurong GRC), Dr Ng said the minimum sum is 'adequate for subsistence living' for about 20 years after age 62.
======================================Can you retire and live on $711 per month?
Using the CPF Retirement calculator
The projected monthly payout from age 62 is $711 and is estimated to last for 20 years.
This assumes that you set aside the Minimum Sum fully in cash when you are 55. Retirement Account interest rate is currently 4% pa, and is subject to change.
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