Revision 04 (last paragraph): updated on August 29, 2017

Revision 03: updated on August 21, 2017

Revision 02: updated on August 18, 2017

Have you projected your CPF figures? It is interesting to find out.

There are some important figures below and assumptions (of course).

(1) I have to emphasize that S$6,000 monthly income and S$30,000 monthly income, both the CPF contributions are all the same. With 13th month bonus included, you will contribute at least

**S$28,860**into the CPF account every year. If you have more bonuses, your CPF figures will be more than the below figures.**This calculation takes 13 months contribution only**.**Always transfer OA to SA**, hence,

**OA account is S$0 balance at all times**.

(3)

**No further S$7,000 SA top up**in the table below, yearly contribution of

**S$28,860 go straight into the column of (SA+MA).**

(4)

**SA and MA interest are 4% but the first S$60,000 will attract additional 1% interest, which is 5% interest in total. With my magic formula, you just calculate the total sum as**

__Why 4.3% interest?__**4.3% interest will be close**to (the first S$60,000 sum enjoying 5% interest, remaining balance 4% interest).

(5)

**Steady increase of FRS by S$5,000 per year.**

(6)

**Steady increase of 4% in BHS per year**.

(7) By the age of 55, the full retirement sum will be

**S$256,000**and basic healthcare sum will be

**S$105,342**. Total (FRS + BHS) of

**S$361,342 will be locked at age 55.**

(8)

**FRS of S$256,000**will yield

**monthly pension of S$2,081**from

**age 65 until death.**

(9)

**If you die earlier,**they will calculate the total monthly pension you have received, then minus from ( the FRS sum of S$256,000 + interest earned for the 10 years , while you are age 55 to age 65 and beyond),

**the proceed will be given to your spouse and children**.

(10) The table below shows that you

**stop working at age 55**, which is quite unlikely for me. I would love to continue to work even up to age 65 if my health allows. So, the table below would be dramatically different as you will have monthly contribution yet again.

(11) Even if you don't work at age 55, you will still see

**a cool S$1.028 million cash**by the

**age of 58**and you have all the absolute right to withdraw that cash from the CPF. Why withdraw? Just leave it for the fat compound interest. Let it rolls, baby!

__Trust me.__

**CPF is the best retirement scheme in the world.**
This section is for

**workaholic.**Some may not want to retire at age 55, they want to work until age 65 or even age 70.**Assuming the monthly income is still at least S$6,000**, you will see:
(a)

**S$1.047 million cash**in the CPF account at the**age of 57**.
(b)

**S$1.747 million cash**at the**age of 65**.
(c)

**S$2.321 million cash**at the**age of 70**.
With that figures in the CPF account,

**.***please don't work anymore*
Give chance to the younger generation.

Updated on August 18, 2017

=====================

Reality check. Hitting the first milestone, (SA+MA),

**S$200,000 mark broken.**
Re-cap, my age 55 (SA+MA) requirement shall be:

**S$361,342**.
Additionally, I have utilized

**OA account**of**S$103,552.04**for HDB flat, accrued interest is**S$15,088.48**as for today, total :**S$118,640.52**shall be in OA account**for housing loan. If I sell the flat TODAY, the sales proceed of***IF I DO NOT USE IT***S$118,640.52**will be returned to CPF OA account first, then remaining balance of sales proceed goes into my bank account.
I also have small portion of investment in CPF OA amount to

**S$1,668.10**(too small figures, negligible).
If I

**never**use CPF OA money for housing loan and investment, the balance of OA account will be**S$120,308.62**, after transfer all OA balance to SA account, the total (SA+MA) will be**S$322,345.66.**The**yearly interest**(~=4.3+%) is**S$13,860**!
Updated on August 21, 2017

=====================

I made a phone call to CPF hotline today and realized I made a

**on the calculation above.**__BIG MISTAKE__
Once your CPF

**SA account reaches Full Retirement Sum**, e.g. S$166,000 (year 2017),**you are**. Please take note.__NOT able__to do CPF OA transfer to SA
If you use SA money to buy unit trust/ insurances and the balance of SA account drops below FRS (for example, below S$166,000 this year), you are able to transfer CPF OA to SA as well as CPF SA S$7,000 TOP UP to enjoy tax relief.

In other words, CPF strictly looks at the SA account balances only.

Same for your MA account, if your MS reaches the BHS and SA reaches FRS, then, your MA contribution will flow to OA, not SA !

__Key takeaways:__
(1) SA reaches FRS, you cannot do CPF SA S$7,000 TOP UP to enjoy tax relief. You cannot transfer CPF OA to SA account.

(2) If MA reaches BHS and SA reaches FRS, CPF MA contribution will go to OA account.

Updated on August 29, 2017

======================

One reader alerted me that there is one error in the posting above.

Hence, the CPF hotline operator is wrong then.

The amount withdrawn from Special Account (SA) for investments are counted as Full Retirement Sum , do take note! See the information below for clarity.

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