Thursday, April 15, 2021

CPF Regrossed Balances benchmark & CPF Balance Projection (Achieved 1M41 & Target 4M65)

I just realized there is a CPF Annual Report that we can benchmark with.

You may click the shortcut link CPFB | CPF Annual Report .


Hence, I decided to benchmark where we stand among the national data.

Below is the distribution of all CPF members by Regrossed Balances and age group as at 31 December 2019.
CPF Annual Report 2020 will be released very soon.

With the figures tabulated, you can benchmark where you stand today. It is quite interesting.

** CPF Regrossed Balances include amounts withdrawn under Investment, Education, Residential Properties, Non-Residential Properties and Public Housing Schemes as at end of period.

We have achieved 1M41 & targeted 4M65

(4M65 includes the RA balance starts with FRS sum of S$282,000 when we are at age 55.)

You can reach 1M even faster if you are not using CPF OA for housing loan.

There is also a 1M65 movement by Mr. Loo to advocate reaching a million dollar as a couple by 65 years old. Of course, he refers to real CPF balancenot CPF Regrossed Balances

If you have invested a big bulk of CPF OA in S&P 500 through Endowus, those monies are not counted as real CPF balance (because that will be CPF regrossed balance) but you can get much more returns at the end of the day once you sold the S&P 500 fund if the fund is doing well. Vice versa.


Next is to project the CPF balances (with good estimation) at the age of 55. 
This is an important stage as we shall do CPF SA shielding few days before age 55.

Everyone shall simulate and project his/her own CPF balances with few assumptions mentioned below:
- Considering only total 13 months contribution (that's to include the usual 13th month)
- If you have 1 month bonus or more, the figures will be more!
- The interest simulation only take 2.5% in OA, 4% in SA, the figures shall be more because the first S$60,000 in (OA+SA) will enjoy additional 1% interest.


Last but not least, CPF is just one, just "ONE" pillar of retirement income, just one BASIC only.

For a nice and sound retirement, you still have :
(1) HDB rental income
(2) Private properties
(3) SRS 
(4) Stocks, US/HK/MY/SG stocks, etc.
(5) Endowus (your S&P500 index , etc. All kind of RoboAdvisor)
(6) Fix deposits, bonds, saving bonds.
(7) Endowment, ILP funds, your beloved Cathie Woods ARK fund, ETF , etc. 
(8) You can even surrender your Whole Life Insurance at later age of 65, 70 if you wish to have surrender payout instead of leaving the legacy (death benefits) to your children.
(9) Cash in UOB One, OCBC 360 account, etc.
(10) Crypto like bitcoin, dogecoin !
Wish everyone has a fruitful retirement life!

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