The previous CPF Full Retirement Sum (FRS) was adjusted higher by 3.0% each year but now it accelerated faster / higher at the speed of 3.5% per year to catch up the inflation rate. The same increment pace (3.5% P.A.) for the BRS and ERS too as they are all linked together.
FRS= 2 x BRS
ERS = 3 x BRS
Below table is the brand new FRS projection based on the 3.5% rise each year. The next 5 years FRS figures had been announced during the Budget Day 2022 ( Feb 18th, 2022).
What's the impact to me?
My projected FRS used to be S$282,000 (with 3% increment P.A.) but now the new projected FRS will be S$300,800 (with 3.5% increment P.A.).
With this higher FRS figure, my CPF LIFE monthly payout at the age of 65 will be increased accordingly from S$2,256 to S$2,406.
Hence, you can treat this change as a forced / disciplined / increased sum of retirement annuity that will later give you a higher monthly pension payout at the age of 65 to death.
You must know how to calculate your own FRS & CPF LIFE monthly payouts too!
My son FRS sum will also be increased from S$726,000 to S$906,800 that will later yield a monthly CPF LIFE payout of S$7,254 at his age of 65.
When will we see the S$1 million dollar mark in FRS ?
48 years later.
Those who born in year 2015 (SG50 babies), your FRS in year 2070 (when you are at age 55), the FRS will be S$1,005,500.
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