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Saturday, December 18, 2021

CPF year 2022

December 2021 CPF balances.


Total net amount used in housing & accrued interest.

Magic 4.3% interest calculation for SA and MA, OA remains as 2.5%.

It came to the end of year 2021. as of December 18, 2021, our CPF balances stood at S$780,904.
On December 31st, 2021, I expect the CPF balances to be around S$810,366.
Total amount used in housing S$252,701.
CPF Regrossed Balances currently: S$1,056,964 (1.05M41).


As for my 9 years old boy, I still prefer the OLD CPF presentation as follow:
It is not difficult to predict the CPF interests as both SA and MA currently drawing the maximum 5% interest, which are S$1,600 interest in SA and S$215.02 in MA.

9 years old boy's CPF account balance: S$36,300.41.

Why I top up the child CPF in SA account instead of MA?
Technically, there are no differences as both account (SA and MA) yield up to 5% interest. 

He received the FREE S$3,000 from the government in MA account once he was born in September 2012. I would like to see the compound interest effect on the S$3,000 in CPF MA account by leaving the MA account untouched. 

That says all the MA account monies are FREE from the government. That's the reason.

The new CPF child account statement looks like this now:
Everyone must know your own expected/projected Full Retirement Sum (FRS) figure.
My FRS will be S$282,000.
My boys' FRS will be S$726,000.

Given FRS of S$250,000 gives S$2,000 per month from age 65 to life.
FRS of S$282,000 will give S$2,256 per month.
FRS of S$726,000 will give S$5,808 per month instead.

That's using the linear algebra extrapolation.
Understood that it is not perfectly linear, the estimated monthly sum is close/good enough for our knowledge and it is a good quick calculation. : )
National rally speech in year 2014.
You still can watch the full speech below:

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